BILL ANALYSIS


                                                        H.B. 2487
                                           By: Gutierrez (Rosson)
                                             Economic Development
                                                          5-24-95
                              Senate Committee Report (Unamended)
BACKGROUND

Federal law, particularly as expanded by the Riegle Community
Development and Regulatory Improvement Act of 1994, requires
lenders to obtain or have the borrower obtain flood insurance where
such is available.  Under current law, secondary mortgage loans
made under Article 5069-5.02, V.T.C.S., grant no authorization for
the lender to charge directly or indirectly the required
determination fee for flood insurance.

PURPOSE

As proposed, H.B. 2487 authorizes a secondary mortgage loan lender
or an assignee of a secondary mortgage loan to collect on or before
the closing of a loan, or include in the principal of the secondary
mortgage loan, reasonable fees relating to real property offered as
security for the loan that are incurred to comply with a federally
mandated program.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section (7), Article 5069-5.02, V.T.C.S., to
authorize a secondary mortgage loan lender or an assignee of a
secondary mortgage loan to collect on or before the closing of a
loan, or include in the principal of the secondary mortgage loan,
among other items, reasonable fees relating to real property
offered as security for the loan that are incurred to comply with
a federally mandated program, if the collection of the fees or the
participation in the program is required by a federal agency.

SECTION 2. Effective date: September 1, 1995.

SECTION 3. Emergency clause.