By: West S.B. No. 1581 Line and page numbers may not match official copy. Bill not drafted by TLC or Senate E&E. A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to certain practices in connection with a home loan. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Subtitle B, Title 4, Finance Code, is 1-5 amended by adding Chapter 343 to read as follows: 1-6 CHAPTER 343. HOME LOANS 1-7 SUBCHAPTER A. GENERAL PROVISIONS 1-8 Sec. 343.001 DEFINITIONS. In this chapter: 1-9 (1) "Home Loan" means a loan that is : 1-10 (A) made to one or more individuals for 1-11 personal, family, or household purposes; and 1-12 (B) secured in whole or part by: 1-13 (i) a manufactured home, as defined by 1-14 Section 347.002, used or to be used as the borrower's principal 1-15 residence; or 1-16 (ii) real property improved by a dwelling 1-17 designed for occupancy by four or fewer families and used or to be 1-18 used as the borrower's principal residence. 1-19 Sec. 343.002 APPLICABILITY. (a) As to home loans secured 1-20 as described by Section 343.001(1)(B)(ii), this chapter applies 1-21 only if the principal amount of the loan is equal to or less than 1-22 $100,000. 1-23 (Sections 343.003-343.100 reserved for expansion 2-1 SUBCHAPTER B. PROVISIONS RELATING TO HOME LOANS IN GENERAL 2-2 Sec. 343.101. CONSIDERATION OF OBLIGOR'S PAYMENT ABILITY. 2-3 (a) In this section, "obligor" means a person obligated to pay a 2-4 loan, including a borrower, cosigner, or guarantor. If more than 2-5 one person is obligated to pay a loan, the term refers to those 2-6 persons collectively. 2-7 (Sections 343.102-343.200 reserved for expansion 2-8 SUBCHAPTER C. HIGH COST HOME LOANS 2-9 Sec. 343.201. DEFINITION. 2-10 (Sections 343.200-343.299 reserved for expansion. 2-11 SECTION 2. This Act takes effect September 1, 2001, and 2-12 applies only to a loan closed on or after that date.