CSHB 955 is amended by adding SECTION       to Article 5 of the 
bill to read as follows:
	SECTION      . Chapter 59, Finance Code, is amended by adding 
Section 59.011 to read as follows:
	Sec. 59.011.  LENDER LIABILITY FOR CONSTRUCTION.  (a)  For 
purposes of Chapter 27, Property Code, and Title 16, Property Code, 
a federally insured financial institution regulated under this code 
is not a builder.
	(b)  A lender regulated by this code that forecloses on or 
otherwise acquires a home through the foreclosure process or other 
legal means when the loan is in default is not liable to a 
subsequent purchaser for any construction defects of which the 
lender had no knowledge that were created prior to the acquisition 
of the home by the lender.
	(c)  A builder hired by a lender to complete the construction 
of a foreclosed home is not liable for any construction defects of 
which the builder had no knowledge that existed prior to the 
acquisition of the home by the lender, but the builder is subject to 
Chapter 27, Property Code, and Title 16, Property Code, for work 
performed for the lender subsequent to the acquisition of the home 
by the lender.