78R4512 ATP-D
By: Mercer H.B. No. 824
A BILL TO BE ENTITLED
AN ACT
relating to the automatic withdrawal of payments on a home loan from
a borrower's account.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 343, Finance Code, is
amended by adding Section 343.105 to read as follows:
Sec. 343.105. AUTOMATIC PAYMENT OF HOME LOAN. (a) A lender
shall provide a borrower of a home loan with the option of making
the payments on the loan through the automatic withdrawal of each
payment by an electronic funds transfer from the borrower's account
at a financial institution.
(b) A lender shall provide a borrower who chooses to make
payments on a home loan under Subsection (a) with the option of
having the funds automatically withdrawn monthly or semimonthly, on
payment dates selected by the lender.
(c) A lender shall inform a prospective borrower of a home
loan of the payment options prescribed by this section in writing on
or before the closing of the home loan.
SECTION 2. On or before January 1, 2004, a lender shall
inform, in writing, each borrower of a home loan that is outstanding
and owed to the lender on January 1, 2004, of the borrower's payment
options under Section 343.105, Finance Code, as added by this Act.
SECTION 3. This Act takes effect January 1, 2004.