1-1 By: Gutierrez (Senate Sponsor - Rosson) H.B. No. 2487
1-2 (In the Senate - Received from the House May 8, 1995;
1-3 May 9, 1995, read first time and referred to Committee on Economic
1-4 Development; May 23, 1995, reported favorably by the following
1-5 vote: Yeas 6, Nays 0; May 23, 1995, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to certain fees charged for consumer credit purposes.
1-9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10 SECTION 1. Section (7), Article 5.02, Title 79, Revised
1-11 Statutes (Article 5069-5.02, Vernon's Texas Civil Statutes), is
1-12 amended to read as follows:
1-13 (7) In addition to the authorized charges provided in the
1-14 Chapter no further or other charge or amount whatsoever shall be
1-15 directly, or indirectly, charged, contracted for, or received.
1-16 This includes (but is not limited by) all charges such as fees,
1-17 compensation, bonuses, commissions, brokerage, discounts, expenses
1-18 and every other charge of any nature whatsoever, whether of the
1-19 types listed herein or not. Without limitation of the foregoing,
1-20 such charges may be any form of costs or compensation whether
1-21 contracted for or not, received by the lender, or any other person,
1-22 in connection with (a) the investigating, arranging, negotiation,
1-23 procuring, guaranteeing, making, servicing, collecting or enforcing
1-24 a loan; or (b) for the forbearance of money, credit, goods or
1-25 things in action; or (c) for any other service or services
1-26 performed or offered. A secondary mortgage loan lender or an
1-27 assignee of a secondary mortgage loan may collect on or before the
1-28 closing of a loan, or include in the principal of the secondary
1-29 mortgage loan, the following:
1-30 (A) reasonable fees for title examination and
1-31 preparation of an abstract of title by an attorney not an employee
1-32 of the lender, or a title company or property search company
1-33 authorized to do business in this State; or premiums or fees for
1-34 title insurance or title search for the benefit of the mortgagee,
1-35 and, at mortgagor's option, title insurance or title search for the
1-36 benefit of the mortgagor;
1-37 (B) reasonable fees charged to the lender by an
1-38 attorney, provided the attorney is not a salaried employee of the
1-39 lender, for preparation of the loan documents in connection with
1-40 the mortgage loan, if the fees are evidenced by a statement for
1-41 services rendered addressed to the lender;
1-42 (C) charges prescribed by law that are or will be paid
1-43 to public officials for determining the existence of and for
1-44 perfecting, releasing, and satisfying a security interest;
1-45 (D) reasonable fees for an appraisal of real property
1-46 offered as security for the loan prepared by a certified appraiser
1-47 who is not an employee of the lender;
1-48 (E) reasonable cost of any credit report;
1-49 (F) reasonable fees for a survey of real property
1-50 offered as security for the loan prepared by a registered surveyor
1-51 who is not a salaried employee of the lender; <and>
1-52 (G) the premiums received in connection with the sale
1-53 of credit life insurance, credit accident and health insurance, and
1-54 insurance which protects the mortgagee in the event of default by
1-55 the mortgagor, the benefits of which go in whole or in part to
1-56 reduce or extinguish the loan balance. Premiums for property
1-57 insurance written in conformity with Section (2) of Article 5.03 of
1-58 this Title may be added to the loan contract; and
1-59 (H) reasonable fees relating to real property offered
1-60 as security for the loan that are incurred to comply with a
1-61 federally mandated program if the collection of the fees or the
1-62 participation in the program is required by a federal agency.
1-63 In addition, the contract for a secondary mortgage loan may
1-64 provide for:
1-65 (A) reasonable fees or charges paid to the trustee in
1-66 connection with a deed of trust or similar instrument executed in
1-67 connection with the secondary mortgage loan, including but not
1-68 limited to fees for enforcing the lien, posting for sale, selling,
2-1 or releasing the property secured by the deed of trust;
2-2 (B) reasonable fees paid to an attorney who is not an
2-3 employee of the creditor in the collection of a delinquent
2-4 secondary mortgage loan and any court costs and fees incurred in
2-5 the collection of, or foreclosure of, any lien created by the loan;
2-6 (C) a fee of Fifteen Dollars or less for the return by
2-7 a depository institution of a dishonored check, negotiable order of
2-8 withdrawal, or share draft offered in full or partial payment of a
2-9 secondary mortgage loan.
2-10 SECTION 2. This Act takes effect September 1, 1995.
2-11 SECTION 3. The importance of this legislation and the
2-12 crowded condition of the calendars in both houses create an
2-13 emergency and an imperative public necessity that the
2-14 constitutional rule requiring bills to be read on three several
2-15 days in each house be suspended, and this rule is hereby suspended.
2-16 * * * * *