85R5497 GRM-F
By: RodrÃguez S.B. No. 830
A BILL TO BE ENTITLED
AN ACT
relating to the provision of accounting statements by mortgage
servicers for certain loans secured by a lien on residential real
property.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Title 5, Finance Code, is amended by adding
Chapter 397 to read as follows:
CHAPTER 397. ACCOUNTING STATEMENTS FOR CERTAIN HOME LOANS REQUIRED
Sec. 397.001. DEFINITION. In this chapter, "mortgage
servicer" has the meaning assigned by Section 51.0001, Property
Code.
Sec. 397.002. APPLICABILITY OF CHAPTER. This chapter
applies only to a loan secured by a first or subordinate lien on
residential real property that is not:
(1) a federally related mortgage loan, as defined by
12 U.S.C. Section 2602;
(2) a loan that is made by a credit union regulated by
the Credit Union Department; or
(3) a loan that is primarily for business, commercial,
or agricultural purposes, or for temporary financing, such as a
construction loan, as referred to under 12 U.S.C. Section 2602.
Sec. 397.003. ANNUAL ACCOUNTING STATEMENT. A mortgage
servicer shall provide to the borrower an annual statement in
January of each year for the term of the loan. The statement must
clearly and conspicuously state the following information:
(1) the amount of each payment that was received by the
mortgage servicer as payment toward the loan during the preceding
calendar year;
(2) how each payment described by Subdivision (1) was
applied to the borrower's account, including information showing
the amount of each payment that was applied to:
(A) the borrower's principal obligation under
the loan;
(B) the interest charged on the loan;
(C) any escrow account associated with the loan;
and
(D) any fee or other charge assessed against the
borrower during the preceding calendar year; and
(3) the outstanding balance of the borrower's
principal obligation under the loan.
Sec. 397.004. ACTION BY BORROWER. (a) In addition to any
other legal and equitable remedy available, a borrower injured by a
violation of this chapter may bring an action:
(1) to obtain an order requiring compliance with this
chapter; and
(2) to recover:
(A) any actual damages; and
(B) $100 for each violation of this chapter.
(b) A borrower who prevails in an action under this section
may recover reasonable attorney's fees.
SECTION 2. This Act takes effect September 1, 2017.