By Olivo H.B. No. 3241 77R9015 DWS-F A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to certain insurance and fees in connection with a home 1-3 loan. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subtitle B, Title 4, Finance Code, is amended by 1-6 adding Chapter 343 to read as follows: 1-7 CHAPTER 343. HOME LOANS 1-8 Sec. 343.001. CREDIT INSURANCE; FEE FOR DEBT CANCELLATION OR 1-9 SUSPENSION. (a) In this section: 1-10 (1) "Home loan" means a loan to one or more 1-11 individuals, other than a reverse mortgage, in which: 1-12 (A) the principal amount does not exceed the 1-13 conforming loan size limit for a single-family dwelling established 1-14 by the Federal National Mortgage Association; 1-15 (B) the debt is incurred primarily for personal, 1-16 family, or household purposes; and 1-17 (C) the loan is secured by a mortgage or deed of 1-18 trust on real property on which is located or is to be located one 1-19 or more structures designed principally for occupancy by four or 1-20 fewer families that are or will be occupied by the borrower as the 1-21 borrower's principal residence. 1-22 (2) "Lender" means an entity that originated, or acted 1-23 as an intermediary between originators and borrowers, on more than 1-24 five home loans within the preceding 12-month period. 2-1 (b) A lender, in connection with a home loan, may not 2-2 require or allow the advance collection of: 2-3 (1) a premium, on a single premium basis, for any 2-4 credit life insurance, credit health and life insurance, or similar 2-5 insurance, regardless of whether the premium is paid directly by 2-6 the borrower or financed through the loan; or 2-7 (2) a fee for a debt cancellation or suspension 2-8 agreement in connection with a home loan, regardless of whether the 2-9 fee is paid directly by the borrower or financed through the loan. 2-10 SECTION 2. This Act takes effect September 1, 2001, and 2-11 applies only to a loan closed on or after that date.