| 1 | 1 | | By: Lucio S.B. No. 1334 |
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| 2 | 2 | | (Canales) |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to accounting and payoff statements for certain |
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| 8 | 8 | | seller-financed residential loans. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Chapter 343, Finance Code, is amended by adding |
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| 11 | 11 | | Subchapter D to read as follows: |
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| 12 | 12 | | SUBCHAPTER D. SELLER-FINANCED RESIDENTIAL LOANS |
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| 13 | 13 | | Sec. 343.301. APPLICATION. This subchapter applies only to |
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| 14 | 14 | | a seller-financed loan that: |
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| 15 | 15 | | (1) is not a federally related mortgage loan, as |
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| 16 | 16 | | defined by 12 U.S.C. Section 2602; and |
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| 17 | 17 | | (2) is secured by a purchase money lien on residential |
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| 18 | 18 | | real property that was not the seller's principal residence at the |
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| 19 | 19 | | time of sale. |
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| 20 | 20 | | Sec. 343.302. ANNUAL ACCOUNTING STATEMENT REQUIRED. |
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| 21 | 21 | | (a) The lender shall provide to the borrower an accounting |
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| 22 | 22 | | statement in January of each year for the term of the loan. If the |
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| 23 | 23 | | lender mails the statement to the borrower, the statement must be |
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| 24 | 24 | | postmarked not later than January 31. |
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| 25 | 25 | | (b) The accounting statement must include the following |
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| 26 | 26 | | information: |
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| 27 | 27 | | (1) the amount paid toward the outstanding balance of |
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| 28 | 28 | | the loan during the preceding calendar year, including separate |
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| 29 | 29 | | amounts showing the total amount applied to interest and the total |
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| 30 | 30 | | amount applied to principal; |
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| 31 | 31 | | (2) the remaining principal balance owed on the loan; |
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| 32 | 32 | | (3) the number of payments remaining on the loan; |
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| 33 | 33 | | (4) the amounts paid to taxing authorities on the |
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| 34 | 34 | | borrower's behalf if collected by the lender; and |
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| 35 | 35 | | (5) the amounts paid to insure the property on the |
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| 36 | 36 | | borrower's behalf if collected by the lender. |
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| 37 | 37 | | Sec. 343.303. PAYMENT CONSIDERED TIMELY. In a proceeding |
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| 38 | 38 | | related to a loan to which this subchapter applies, a loan payment |
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| 39 | 39 | | is considered to have been paid on the due date by the borrower if |
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| 40 | 40 | | the payment came due during a calendar year for which the lender did |
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| 41 | 41 | | not provide a required accounting statement to the borrower under |
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| 42 | 42 | | Section 343.302. |
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| 43 | 43 | | Sec. 343.304. OTHER PENALTIES AND LIABILITIES NOT |
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| 44 | 44 | | APPLICABLE. Chapter 349 does not apply to a violation of this |
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| 45 | 45 | | subchapter. |
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| 46 | 46 | | SECTION 2. Section 343.106, Finance Code, is amended by |
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| 47 | 47 | | adding Subsection (h) to read as follows: |
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| 48 | 48 | | (h) For purposes of providing a payoff statement required |
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| 49 | 49 | | under this section for a seller-financed loan to which Subchapter D |
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| 50 | 50 | | applies, a loan payment made to the lender is considered to have |
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| 51 | 51 | | been paid on the due date by the borrower if the payment came due |
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| 52 | 52 | | during a calendar year for which the lender did not provide a |
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| 53 | 53 | | required accounting statement to the borrower under Section |
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| 54 | 54 | | 343.302. |
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| 55 | 55 | | SECTION 3. A lender is not required to provide an accounting |
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| 56 | 56 | | statement required by Section 343.302, Finance Code, as added by |
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| 57 | 57 | | this Act, before January 1, 2014. |
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| 58 | 58 | | SECTION 4. This Act takes effect September 1, 2013. |
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