Texas Senate Bill SB147

Texas 2013 - 83rd Regular

• Filed: 12/17/12

Caption

Relating to the amount of outstanding total liability of a mortgage guaranty insurer.

Impact

The revisions proposed in SB147 are expected to impact how mortgage guaranty insurers operate within Texas. By standardizing the calculation of total liabilities, it may help mitigate risks associated with underestimating financial obligations. This could lead to stronger financial stability for insurers and potentially lower costs for consumers seeking mortgage insurance, thereby enhancing accessibility to housing finance.

Summary

SB147 aims to revise the regulations concerning the amount of outstanding total liability of mortgage guaranty insurers in Texas. The bill specifically amends Section 3502.156 of the Insurance Code, changing the manner in which insurers compute their liability. The intent of this change is to provide clarity and ensure that insurers assess their financial obligations accurately and consistently, which is vital for maintaining the health of the mortgage insurance market and protecting consumers.

Contention

While the bill passed without any recorded opposition—indicating broad legislative support—discussions around it may reveal points of contention regarding the balance between regulatory oversight and the flexibility insurers need to operate effectively. Critics may argue that overly stringent requirements could hinder the ability of insurers to effectively manage their operations, potentially leading to adverse effects on the market, including increased rates for consumers or diminished availability of insurance products.