H.B. No. 2487
1-1 AN ACT
1-2 relating to certain fees charged for consumer credit purposes.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section (7), Article 5.02, Title 79, Revised
1-5 Statutes (Article 5069-5.02, Vernon's Texas Civil Statutes), is
1-6 amended to read as follows:
1-7 (7) In addition to the authorized charges provided in the
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 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. A secondary mortgage loan lender or an
1-21 assignee of a secondary mortgage loan may collect on or before the
1-22 closing of a loan, or include in the principal of the secondary
1-23 mortgage loan, the following:
2-1 (A) reasonable fees for title examination and
2-2 preparation of an abstract of title by an attorney not an employee
2-3 of the lender, or a title company or property search company
2-4 authorized to do business in this State; or premiums or fees for
2-5 title insurance or title search for the benefit of the mortgagee,
2-6 and, at mortgagor's option, title insurance or title search for the
2-7 benefit of the mortgagor;
2-8 (B) reasonable fees charged to the lender by an
2-9 attorney, provided the attorney is not a salaried employee of the
2-10 lender, for preparation of the loan documents in connection with
2-11 the mortgage loan, if the fees are evidenced by a statement for
2-12 services rendered addressed to the lender;
2-13 (C) charges prescribed by law that are or will be paid
2-14 to public officials for determining the existence of and for
2-15 perfecting, releasing, and satisfying a security interest;
2-16 (D) reasonable fees for an appraisal of real property
2-17 offered as security for the loan prepared by a certified appraiser
2-18 who is not an employee of the lender;
2-19 (E) reasonable cost of any credit report;
2-20 (F) reasonable fees for a survey of real property
2-21 offered as security for the loan prepared by a registered surveyor
2-22 who is not a salaried employee of the lender; <and>
2-23 (G) the premiums received in connection with the sale
2-24 of credit life insurance, credit accident and health insurance, and
2-25 insurance which protects the mortgagee in the event of default by
3-1 the mortgagor, the benefits of which go in whole or in part to
3-2 reduce or extinguish the loan balance. Premiums for property
3-3 insurance written in conformity with Section (2) of Article 5.03 of
3-4 this Title may be added to the loan contract; and
3-5 (H) reasonable fees relating to real property offered
3-6 as security for the loan that are incurred to comply with a
3-7 federally mandated program if the collection of the fees or the
3-8 participation in the program is required by a federal agency.
3-9 In addition, the contract for a secondary mortgage loan may
3-10 provide for:
3-11 (A) reasonable fees or charges paid to the trustee in
3-12 connection with a deed of trust or similar instrument executed in
3-13 connection with the secondary mortgage loan, including but not
3-14 limited to fees for enforcing the lien, posting for sale, selling,
3-15 or releasing the property secured by the deed of trust;
3-16 (B) reasonable fees paid to an attorney who is not an
3-17 employee of the creditor in the collection of a delinquent
3-18 secondary mortgage loan and any court costs and fees incurred in
3-19 the collection of, or foreclosure of, any lien created by the loan;
3-20 (C) a fee of Fifteen Dollars or less for the return by
3-21 a depository institution of a dishonored check, negotiable order of
3-22 withdrawal, or share draft offered in full or partial payment of a
3-23 secondary mortgage loan.
3-24 SECTION 2. This Act takes effect September 1, 1995.
3-25 SECTION 3. The importance of this legislation and the
4-1 crowded condition of the calendars in both houses create an
4-2 emergency and an imperative public necessity that the
4-3 constitutional rule requiring bills to be read on three several
4-4 days in each house be suspended, and this rule is hereby suspended.