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;
(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; or
(4) a loan that is directly financed and serviced by a
relative within the second degree of consanguinity or affinity of
the borrower.
Sec. 397.003. ANNUAL ACCOUNTING STATEMENT. (a) 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 be
provided by mail, postmarked on or before January 31, and sent to
the borrower at the borrower's last known address.
(b) The statement required by Subsection (a) 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. RECOURSE OF BORROWER FOR MORTGAGE SERVICER'S
FAILURE TO TIMELY PROVIDE STATEMENT; LIABILITY OF MORTGAGE
SERVICER. (a) If a borrower does not receive an annual statement
within the time prescribed by Section 397.003(a), the borrower may
request the statement from the mortgage servicer by sending a
request to that effect to the mortgage servicer by certified mail,
return receipt requested.
(b) Except as provided by Subsection (c), if, after
receiving a request under Subsection (a), the mortgage servicer
fails to provide the statement to the borrower on or before the 25th
day after the date the mortgage servicer receives the request:
(1) the borrower is not liable for any payment, fees,
or other charges not made during the year to which the annual
statement relates and is considered to have paid all payments,
fees, or other charges owed under the loan relating to that year, on
time, and in accordance with the terms of the loan agreement; and
(2) if the mortgagee is not the mortgage servicer, the
mortgage servicer is liable for paying the mortgagee:
(A) any amount for which the borrower is no
longer liable under Subdivision (1); and
(B) any fee or other charge assessed against the
borrower by the mortgagee as a result of, or consequential damages
arising out of, the mortgage servicer's failure to comply with this
section.
(c) Subsection (b) does not apply if, before the borrower
requests an annual statement under this section, the mortgage
servicer sends a default notice to the borrower at the borrower's
last known address by certified mail, return receipt requested.
SECTION 2. This Act takes effect September 1, 2017.