| 1 | 1 | | 87R1830 SRA-D |
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| 2 | 2 | | By: Miles S.B. No. 362 |
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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 satisfaction of a reverse mortgage loan after the |
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| 8 | 8 | | death of the last surviving borrower. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subtitle B, Title 4, Finance Code, is amended by |
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| 11 | 11 | | adding Chapter 343A to read as follows: |
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| 12 | 12 | | CHAPTER 343A. REVERSE MORTGAGE LOANS |
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| 13 | 13 | | Sec. 343A.001. DEFINITION. In this chapter, "immediate |
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| 14 | 14 | | family member" means a person who is within the first degree of |
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| 15 | 15 | | consanguinity or affinity, as determined under Chapter 573, |
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| 16 | 16 | | Government Code. |
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| 17 | 17 | | Sec. 343A.002. SATISFACTION OF REVERSE MORTGAGE LOAN AFTER |
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| 18 | 18 | | DEATH OF LAST SURVIVING BORROWER. (a) This section applies only to |
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| 19 | 19 | | an heir who is an immediate family member of a borrower. |
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| 20 | 20 | | (b) After the death of the last surviving borrower of a |
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| 21 | 21 | | reverse mortgage loan secured by the borrower's residence, the |
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| 22 | 22 | | lender shall allow an heir who inherits the residence not less than |
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| 23 | 23 | | six months after the date of the death of the borrower to satisfy |
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| 24 | 24 | | the loan before beginning the foreclosure process on the residence. |
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| 25 | 25 | | SECTION 2. To the extent of a conflict between Chapter 343A, |
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| 26 | 26 | | Finance Code, as added by this Act, and a provision of a reverse |
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| 27 | 27 | | mortgage loan agreement entered into before the effective date of |
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| 28 | 28 | | this Act, the provision of the reverse mortgage loan agreement |
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| 29 | 29 | | prevails. |
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| 30 | 30 | | SECTION 3. This Act takes effect September 1, 2021. |
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