Texas House Bill HB2817

Texas 2015 - 84th Regular

Caption

Relating to fees and costs imposed by mortgagees or mortgage servicers for certain legal services performed by an attorney.

Impact

The legislation will amend Chapter 51 of the Property Code by adding Section 51.016, which directly addresses the collection of certain legal fees and costs. This amendment applies explicitly to security instruments executed after the effective date of the act, which is designated as September 1, 2015. By clarifying who can legitimately charge such fees and under what conditions, the bill intends to enhance consumer protection against potentially predatory practices in the mortgage servicing industry.

Summary

House Bill 2817 seeks to regulate the fees and costs that mortgagees or mortgage servicers can impose for legal services associated with the foreclosure process. The bill specifically prohibits the collection of such fees unless the services are provided by legally qualified professionals—namely, attorneys who are members in good standing of the State Bar of Texas and maintain an accessible office in the state. This change aims to protect consumers by ensuring that only qualified individuals handle legal services in relation to mortgage issues, particularly foreclosures.

Contention

One of the notable points of contention surrounding HB 2817 is likely linked to the broader discussions on consumer protection versus the operational flexibility of mortgage servicers. Proponents argue that the bill is essential to safeguard homeowners from excessive and unjust fees, helping to create a fairer system in mortgage servicing. However, opponents may express concerns that stringent regulations could complicate legal proceedings and potentially increase operational costs for servicers, ultimately leading to higher costs for consumers in other areas.