78R6126 PAM-D

By:  Solomons                                                     H.B. No. 1493



A BILL TO BE ENTITLED

AN ACT

relating to authorizing a mortgage servicer to conduct a 
foreclosure sale on behalf of a mortgagee.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Chapter 51, Property Code, is amended by adding 
Section 51.0021 to read as follows:
	Sec. 51.0021.  MORTGAGE SERVICER AUTHORIZED TO CONDUCT SALE.  
(a)  In this section:
		(1)  "Mortgage" means a deed of trust or other contract 
lien on an interest in real property.
		(2)  "Mortgagee" means:                                                
			(A)  the grantee of a mortgage; or                                    
			(B)  if a mortgage has been assigned of record, 
the last person to whom the mortgage has been assigned of record.
		(3)  "Mortgage servicer" means the last person to whom 
a mortgagor has been instructed by a mortgagee to send payments for 
the loan secured by a mortgage.
		(4)  "Mortgagor" means the grantor of a mortgage.                      
	(b)  A mortgage servicer may conduct a sale of real property 
under Section 51.002 on behalf of a mortgagee if:
		(1)  the mortgage servicer and the mortgagee have 
entered into an agreement granting the mortgage servicer authority 
to service the mortgage; and
		(2)  the mortgage servicer discloses in the notices 
required under Section 51.002 that the servicer is representing the 
mortgagee under a servicing agreement with the mortgagee.
	SECTION 2.  This Act takes effect September 1, 2003.