87R1830 SRA-D
By: Miles S.B. No. 362
A BILL TO BE ENTITLED
AN ACT
relating to the satisfaction of a reverse mortgage loan after the
death of the last surviving borrower.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle B, Title 4, Finance Code, is amended by
adding Chapter 343A to read as follows:
CHAPTER 343A. REVERSE MORTGAGE LOANS
Sec. 343A.001. DEFINITION. In this chapter, "immediate
family member" means a person who is within the first degree of
consanguinity or affinity, as determined under Chapter 573,
Government Code.
Sec. 343A.002. SATISFACTION OF REVERSE MORTGAGE LOAN AFTER
DEATH OF LAST SURVIVING BORROWER. (a) This section applies only to
an heir who is an immediate family member of a borrower.
(b) After the death of the last surviving borrower of a
reverse mortgage loan secured by the borrower's residence, the
lender shall allow an heir who inherits the residence not less than
six months after the date of the death of the borrower to satisfy
the loan before beginning the foreclosure process on the residence.
SECTION 2. To the extent of a conflict between Chapter 343A,
Finance Code, as added by this Act, and a provision of a reverse
mortgage loan agreement entered into before the effective date of
this Act, the provision of the reverse mortgage loan agreement
prevails.
SECTION 3. This Act takes effect September 1, 2021.