| 1 | 1 | | 85R4161 GRM-F |
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| 2 | 2 | | By: Walle H.B. No. 993 |
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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 the provision of accounting statements by mortgage |
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| 8 | 8 | | servicers for certain loans secured by a lien on residential real |
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| 9 | 9 | | property. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Title 5, Finance Code, is amended by adding |
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| 12 | 12 | | Chapter 397 to read as follows: |
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| 13 | 13 | | CHAPTER 397. ACCOUNTING STATEMENTS FOR CERTAIN HOME LOANS REQUIRED |
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| 14 | 14 | | Sec. 397.001. DEFINITION. In this chapter, "mortgage |
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| 15 | 15 | | servicer" has the meaning assigned by Section 51.0001, Property |
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| 16 | 16 | | Code. |
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| 17 | 17 | | Sec. 397.002. APPLICABILITY OF CHAPTER. This chapter |
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| 18 | 18 | | applies only to a loan secured by a first or subordinate lien on |
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| 19 | 19 | | residential real property that is not: |
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| 20 | 20 | | (1) a federally related mortgage loan, as defined by |
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| 21 | 21 | | 12 U.S.C. Section 2602; |
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| 22 | 22 | | (2) a loan that is made by a credit union regulated by |
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| 23 | 23 | | the Credit Union Department; or |
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| 24 | 24 | | (3) a loan that is primarily for business, commercial, |
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| 25 | 25 | | or agricultural purposes, or for temporary financing, such as a |
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| 26 | 26 | | construction loan, as referred to under 12 U.S.C. Section 2602. |
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| 27 | 27 | | Sec. 397.003. ANNUAL ACCOUNTING STATEMENT. A mortgage |
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| 28 | 28 | | servicer shall provide to the borrower an annual statement in |
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| 29 | 29 | | January of each year for the term of the loan. The statement must |
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| 30 | 30 | | clearly and conspicuously state the following information: |
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| 31 | 31 | | (1) the amount of each payment that was received by the |
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| 32 | 32 | | mortgage servicer as payment toward the loan during the preceding |
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| 33 | 33 | | calendar year; |
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| 34 | 34 | | (2) how each payment described by Subdivision (1) was |
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| 35 | 35 | | applied to the borrower's account, including information showing |
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| 36 | 36 | | the amount of each payment that was applied to: |
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| 37 | 37 | | (A) the borrower's principal obligation under |
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| 38 | 38 | | the loan; |
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| 39 | 39 | | (B) the interest charged on the loan; |
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| 40 | 40 | | (C) any escrow account associated with the loan; |
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| 41 | 41 | | and |
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| 42 | 42 | | (D) any fee or other charge assessed against the |
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| 43 | 43 | | borrower during the preceding calendar year; and |
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| 44 | 44 | | (3) the outstanding balance of the borrower's |
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| 45 | 45 | | principal obligation under the loan. |
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| 46 | 46 | | Sec. 397.004. ACTION BY BORROWER. In addition to any other |
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| 47 | 47 | | legal and equitable remedy available, a borrower injured by a |
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| 48 | 48 | | violation of this chapter may bring an action: |
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| 49 | 49 | | (1) to obtain an order requiring compliance with this |
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| 50 | 50 | | chapter; and |
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| 51 | 51 | | (2) to recover: |
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| 52 | 52 | | (A) actual damages, including reasonable |
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| 53 | 53 | | attorney's fees; and |
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| 54 | 54 | | (B) $100 for each violation of this chapter. |
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| 55 | 55 | | SECTION 2. This Act takes effect September 1, 2017. |
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