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.