| 12 | | - | SECTION 1. Subchapter A, Chapter 22, Government Code, is |
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| 13 | | - | amended by adding Section 22.021 to read as follows: |
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| 14 | | - | Sec. 22.021. RULES CONCERNING ABATEMENT OF CERTAIN |
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| 15 | | - | EXPEDITED FORECLOSURE PROCEEDINGS. The supreme court shall adopt |
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| 16 | | - | rules of civil procedure providing for abatement, in appropriate |
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| 17 | | - | cases, of expedited foreclosure proceedings described by Section |
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| 18 | | - | 50(r), Article XVI, Texas Constitution, to facilitate completion of |
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| 19 | | - | a loan modification effort while preserving the expedited character |
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| 20 | | - | of proceedings conducted under Rule 736, Texas Rules of Civil |
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| 21 | | - | Procedure. |
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| 22 | | - | SECTION 2. The Supreme Court of Texas shall initiate |
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| 23 | | - | proceedings to adopt rules under Section 22.021, Government Code, |
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| 24 | | - | as added by this Act, on or before the 90th day after the effective |
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| 25 | | - | date of this Act. |
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| 9 | + | SECTION 1. Section 154.028(e), Civil Practice and Remedies |
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| 10 | + | Code, is amended to read as follows: |
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| 11 | + | (e) At a hearing under Subsection (a), the court must |
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| 12 | + | consider any objections to the referral of the case to mediation. |
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| 13 | + | In addition, the court may abate or dismiss the application if the |
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| 14 | + | court determines that at least 30 days prior to the hearing: |
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| 15 | + | (1) the borrower has submitted a completed loss |
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| 16 | + | mitigation application to the lender or servicer; and |
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| 17 | + | (2) the lender or servicer has not provided the |
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| 18 | + | borrower, in writing, a notice stating: |
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| 19 | + | (A) the borrower has been denied for any loss |
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| 20 | + | mitigation options, or |
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| 21 | + | (B) the lender or servicer's determination of |
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| 22 | + | which loss mitigation options, if any, will be offered to the |
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| 23 | + | borrower on behalf of the owner or assignee of the mortgage loan. |
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| 24 | + | (e-1) For the purpose of subsection (e), "loss mitigation |
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| 25 | + | application" means a completed application in which a lender or |
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| 26 | + | servicer has received all information the lender or servicer |
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| 27 | + | requested from a borrower to evaluate the borrower for the loss |
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| 28 | + | mitigation options available to the borrower. |
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| 29 | + | SECTION 2. The change in law made by this Act applies only |
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| 30 | + | to an application for an expedited order allowing foreclosure of a |
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| 31 | + | lien that is filed on or after the effective date of this Act. An |
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| 32 | + | application filed before the effective date of this Act is governed |
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| 33 | + | by the law applicable to the application immediately before the |
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| 34 | + | effective date of this Act, and that law is continued in effect for |
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| 35 | + | that purpose. |
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