By Olivo                                              H.B. No. 3239
         77R8557 DWS-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to home loan documents.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1. Subtitle B, Title 4, Finance Code, is amended by
 1-5     adding Chapter 343 to read as follows:
 1-6                        CHAPTER 343. LENDER PRACTICES
 1-7           Sec. 343.001.  DOCUMENT WITH BLANKS. (a)  In this section,
 1-8     "home loan" means a loan to one or more individuals, other than a
 1-9     reverse mortgage, in which:
1-10                 (1)  the principal amount does not exceed the
1-11     conforming loan size limit for a single-family dwelling established
1-12     by the Federal National Mortgage Association;
1-13                 (2)  the debt is incurred primarily for personal,
1-14     family, or household purposes; and
1-15                 (3)  the loan is secured by a mortgage or deed of trust
1-16     on real property on which is located or is to be located one or
1-17     more structures designed principally for occupancy by four or fewer
1-18     families that are or will be occupied by the borrower as the
1-19     borrower's principal residence.
1-20           (b)  A home loan document in which blanks are left to be
1-21     filled in after it is signed by the borrower is void.
1-22           SECTION 2. This Act takes effect September 1, 2001, and
1-23     applies only to a loan closed on or after that date.