By Jones of Lubbock H.B. No. 2163
74R7713 CLG-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to loan processing and preparation fees.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section (8), Article 3.15, Title 79, Revised
1-5 Statutes (Article 5069-3.15, Vernon's Texas Civil Statutes), is
1-6 amended to read as follows:
1-7 (8) In addition to the authorized charges provided in this
1-8 chapter no further or other charge or amount whatsoever shall be
1-9 directly, or indirectly, charged, contracted for, or received.
1-10 This includes (but is not limited by) all charges such as fees,
1-11 compensation, bonuses, commissions, brokerage, discounts, expenses
1-12 and every other charge of any nature whatsoever, whether of the
1-13 types listed herein or not. Without limitation of the foregoing,
1-14 such charges may be any form of costs or compensation whether
1-15 contracted for or not, received by the lender, or any other person,
1-16 in connection with (a) the investigating, arranging, negotiation,
1-17 procuring, guaranteeing, making, servicing, collecting or enforcing
1-18 of a loan; or (b) for the forbearance of money, credit, goods or
1-19 things in action; or (c) for any other service or services
1-20 performed or offered. However, the prohibition set out herein
1-21 shall not apply to a fee not to exceed $25 to defray the costs
1-22 necessary to prepare or process a loan application; amounts
1-23 actually incurred by an authorized lender as court costs; attorney
1-24 fees assessed by a court; lawful fees for filing, recording, or
2-1 releasing in any public office any security for a loan; the
2-2 reasonable cost actually expended for repossessing, storing,
2-3 preparing for sale, or selling any security; or fees for noting a
2-4 lien on or transferring a certificate of title to any motor vehicle
2-5 offered as security for a loan made under this Chapter, or premiums
2-6 or identifiable charge received in connection with the sale of
2-7 insurance authorized under this Chapter.
2-8 SECTION 2. Section (7), Article 4.01, Title 79, Revised
2-9 Statutes (Article 5069-4.01, Vernon's Texas Civil Statutes), is
2-10 amended to read as follows:
2-11 (7) In addition to the authorized charges provided in this
2-12 Chapter no further or other charge or amount whatsoever shall be
2-13 directly, or indirectly, charged, contracted for, or received.
2-14 This includes (but is not limited by) all charges such as fees,
2-15 compensation, bonuses, commissions, brokerage, discounts, expenses
2-16 and every other charge of any nature whatsoever, whether of the
2-17 types listed herein or not. Without limitation of the foregoing,
2-18 such charges may be any form of costs or compensation whether
2-19 contracted for or not, received by the lender, or any other person,
2-20 in connection with (a) the investigating, arranging, negotiation,
2-21 procuring, guaranteeing, making, servicing, collecting or enforcing
2-22 of a loan; or (b) for the forbearance of money, credit, goods or
2-23 things in action; or (c) for any other service or services
2-24 performed or offered. However, the prohibition set out herein
2-25 shall not apply to a fee not to exceed $25 to defray the costs
2-26 necessary to prepare or process a loan application; amounts
2-27 actually incurred by a lender as court costs, attorney fees
3-1 assessed by a court, lawful fees for filing, recording, or
3-2 releasing to any public office any instrument securing a loan; the
3-3 reasonable cost actually expended for repossessing, storing,
3-4 preparing for sale, or selling any security; or fees for noting a
3-5 lien on or transferring a certificate of title to any motor vehicle
3-6 offered as security for a loan made under this Chapter, or premiums
3-7 or identifiable charge received in connection with the sale of
3-8 insurance authorized under this Chapter.
3-9 SECTION 3. Section (7), Article 5.02, Title 79, Revised
3-10 Statutes (Article 5069-5.02, Vernon's Texas Civil Statutes), is
3-11 amended to read as follows:
3-12 (7) In addition to the authorized charges provided in the
3-13 Chapter no further or other charge or amount whatsoever shall be
3-14 directly, or indirectly, charged, contracted for, or received.
3-15 This includes (but is not limited by) all charges such as fees,
3-16 compensation, bonuses, commissions, brokerage, discounts, expenses
3-17 and every other charge of any nature whatsoever, whether of the
3-18 types listed herein or not. Without limitation of the foregoing,
3-19 such charges may be any form of costs or compensation whether
3-20 contracted for or not, received by the lender, or any other person,
3-21 in connection with (a) the investigating, arranging, negotiation,
3-22 procuring, guaranteeing, making, servicing, collecting or enforcing
3-23 a loan; or (b) for the forbearance of money, credit, goods or
3-24 things in action; or (c) for any other service or services
3-25 performed or offered. A secondary mortgage loan lender or an
3-26 assignee of a secondary mortgage loan may collect on or before the
3-27 closing of a loan, or include in the principal of the secondary
4-1 mortgage loan, the following:
4-2 (A) reasonable fees for title examination and
4-3 preparation of an abstract of title by an attorney not an employee
4-4 of the lender, or a title company or property search company
4-5 authorized to do business in this State; or premiums or fees for
4-6 title insurance or title search for the benefit of the mortgagee,
4-7 and, at mortgagor's option, title insurance or title search for the
4-8 benefit of the mortgagor;
4-9 (B) reasonable fees charged to the lender by an
4-10 attorney, provided the attorney is not a salaried employee of the
4-11 lender, for preparation of the loan documents in connection with
4-12 the mortgage loan, if the fees are evidenced by a statement for
4-13 services rendered addressed to the lender;
4-14 (C) charges prescribed by law that are or will be paid
4-15 to public officials for determining the existence of and for
4-16 perfecting, releasing, and satisfying a security interest;
4-17 (D) reasonable fees for an appraisal of real property
4-18 offered as security for the loan prepared by a certified appraiser
4-19 who is not an employee of the lender;
4-20 (E) reasonable cost of any credit report;
4-21 (F) reasonable fees for a survey of real property
4-22 offered as security for the loan prepared by a registered surveyor
4-23 who is not a salaried employee of the lender; <and>
4-24 (G) the premiums received in connection with the sale
4-25 of credit life insurance, credit accident and health insurance, and
4-26 insurance which protects the mortgagee in the event of default by
4-27 the mortgagor, the benefits of which go in whole or in part to
5-1 reduce or extinguish the loan balance. Premiums for property
5-2 insurance written in conformity with Section (2) of Article 5.03 of
5-3 this Title may be added to the loan contract; and
5-4 (H) reasonable fees in an amount not to exceed $25 to
5-5 defray the costs necessary to prepare or process a loan
5-6 application.
5-7 In addition, the contract for a secondary mortgage loan may
5-8 provide for:
5-9 (A) reasonable fees or charges paid to the trustee in
5-10 connection with a deed of trust or similar instrument executed in
5-11 connection with the secondary mortgage loan, including but not
5-12 limited to fees for enforcing the lien, posting for sale, selling,
5-13 or releasing the property secured by the deed of trust;
5-14 (B) reasonable fees paid to an attorney who is not an
5-15 employee of the creditor in the collection of a delinquent
5-16 secondary mortgage loan and any court costs and fees incurred in
5-17 the collection of, or foreclosure of, any lien created by the loan;
5-18 (C) a fee of Fifteen Dollars or less for the return by
5-19 a depository institution of a dishonored check, negotiable order of
5-20 withdrawal, or share draft offered in full or partial payment of a
5-21 secondary mortgage loan.
5-22 SECTION 4. This Act takes effect September 1, 1995.
5-23 SECTION 5. The importance of this legislation and the
5-24 crowded condition of the calendars in both houses create an
5-25 emergency and an imperative public necessity that the
5-26 constitutional rule requiring bills to be read on three several
5-27 days in each house be suspended, and this rule is hereby suspended.