83R10376 NC/CLG-D
By: Carter H.B. No. 2864
A BILL TO BE ENTITLED
AN ACT
relating to requirements for mortgage servicers in connection with
loans for the purchase of residential property.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 343, Finance Code, is amended by adding
Subchapter D to read as follows:
SUBCHAPTER D. REQUIREMENTS FOR MORTGAGE
SERVICERS OF HOME LOANS
Sec. 343.301. DEFINITION. In this subchapter, "mortgage
servicer" has the meaning assigned by Section 51.0001, Property
Code.
Sec. 343.302. SINGLE POINT OF CONTACT FOR HOME LOAN
INQUIRIES. (a) Not later than the 30th day after the date a
mortgage servicer begins servicing a home loan, the mortgage
servicer shall provide to the borrower in writing the name and
telephone number of a person employed by the mortgage servicer who
will serve as the borrower's single point of contact within the
mortgage servicer's office with respect to all inquiries related to
the home loan.
(b) The person serving as the borrower's point of contact
under Subsection (a) shall ensure that the borrower is properly and
correctly informed regarding any loan modification plan entered
into between the mortgage servicer and the borrower or any other
modification of loan terms.
Sec. 343.303. NOTICE OF ASSIGNMENT, SALE, OR OTHER TRANSFER
OF LOAN SERVICING. (a) Except as provided by Subsection (d), a
mortgage servicer shall notify the borrower in writing of any
assignment, sale, or other transfer of the servicing of a home loan
to any other person.
(b) The notice required by Subsection (a) must contain:
(1) the effective date of the transfer;
(2) the name, address, and telephone number of the
transferee mortgage servicer;
(3) the name and telephone number of an individual
employed by, or the office or department of, the transferor
mortgage servicer that can be contacted by the borrower to answer
inquiries relating to the transfer of servicing;
(4) the name and telephone number of an individual
employed by, or the office or department of, the transferee
mortgage servicer that can be contacted by the borrower to answer
inquiries relating to the transfer of servicing; and
(5) the date on which the transferor mortgage servicer
who is servicing the mortgage loan before the assignment, sale, or
other transfer will cease to accept payments relating to the loan
and the date on which the transferee mortgage servicer will begin to
accept the payments.
(c) A transferor mortgage servicer shall provide the notice
required by Subsection (a) by certified mail, return receipt
requested, not later than the 15th day before the effective date of
the assignment, sale, or other transfer of the servicing of the home
loan.
(d) A transferor mortgage servicer or transferee mortgage
servicer is not required to provide notice of an assignment, sale,
or other transfer of the servicing of a home loan as required by
this section if the lender provides to the borrower, at settlement
with respect to the property for the purchase of which the loan is
made, written notice of the assignment, sale, or other transfer of
the servicing of the loan and that notice contains the information
required by Subsection (b).
Sec. 343.304. LIABILITY FOR CERTAIN VIOLATIONS UNDER THIS
SUBCHAPTER. (a) A mortgage servicer that violates Section 343.303
is liable to the borrower for:
(1) any actual damages to the borrower as a result of
the violation; and
(2) any additional damages the court allows, in the
case of a pattern or practice of violations of Section 343.303, in
an amount not to exceed $2,000.
(b) In addition to the amounts awarded under Subsection (a),
a mortgage servicer who is liable under this section is liable for
court costs and reasonable attorney's fees incurred in connection
with the action.
SECTION 2. Section 51.002, Property Code, is amended by
adding Subsection (e-1) to read as follows:
(e-1) The mortgage servicer shall file an affidavit
described by Subsection (e) and a copy of the certified mail receipt
and signature record for the notice sent to the debtor under
Subsection (d) with the county clerk for recording in the deed
records. A trustee may not exercise a power of sale under this
section with respect to real property used as the debtor's
residence unless the affidavit and the certified mail receipt and
signature record are filed under this subsection.
SECTION 3. Section 51.002, Property Code, as amended by
this Act, applies only to a sale of residential real property for
which notice of default under that section is provided on or after
the effective date of this Act. A sale in which notice of default is
provided before the effective date of this Act is subject to the law
in effect immediately before that date, and that law is continued in
effect for that purpose.
SECTION 4. This Act takes effect January 1, 2014.