79R13601 MFC-F


By:  Chavez                                                       H.B. No. 1582

Substitute the following for H.B. No. 1582:                                   

By:  Solomons                                                 C.S.H.B. No. 1582



A BILL TO BE ENTITLED

AN ACT

relating to a study of residential foreclosures in certain 
counties.        
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter K, Chapter 2306, Government Code, is 
amended by adding Section 2306.260 to read as follows:
	Sec. 2306.260.  STUDY REGARDING RESIDENTIAL FORECLOSURES.  
(a)  The department shall conduct a study to examine mortgage 
foreclosure rates in Bexar, Cameron, Dallas, El Paso, and Travis 
Counties and shall establish an advisory committee to direct the 
focus of the study.  The advisory committee shall be composed of:
		(1)  the director or the director's representative;                    
		(2)  the savings and loan commissioner or the 
commissioner's representative;
		(3)  four members appointed by the director who 
represent community and consumer interests;
		(4)  four members appointed by the savings and loan 
commissioner who represent the mortgage lending industry; and
		(5)  a representative of the Texas Housing Research 
Consortium at The University of Texas at Austin.
	(b)  The representative of the Texas Housing and Research 
Consortium at The University of Texas at Austin serves as chair of 
the advisory committee.
	(c)  The advisory committee established under Subsection (a) 
shall address the following topics in the study:
		(1)  the extent to which the terms of mortgages are 
related to the foreclosure rate and whether the terms could be 
offered in a manner to reduce the likelihood of foreclosures;
		(2)  the socioeconomic and geographic elements 
characterizing foreclosures;
		(3)  the securitization of mortgages in the secondary 
market and its effect on foreclosures;
		(4)  consumer education efforts to prevent 
foreclosures; and         
		(5)  recommendations to reduce foreclosures and the 
foreclosure rate across this state.
	(d)  The advisory committee shall determine the methodology 
to be used in conducting the study.  The methodology used to study 
the topics listed in Subsections (c)(1), (2), and (3) must include a 
statistically significant sample size.
	(e)  All findings of the advisory committee must be approved 
by a majority of the members of the advisory committee.
	(f)  To obtain information to conduct the study, the 
department may contract with appropriate organizations, public or 
private institutions of higher education, and entities with 
experience in conducting real estate or mortgage research.  All 
state agencies, boards, commissions, and institutions of higher 
education shall comply with requests from the department for 
information or assistance in conducting the study.
	(g)  All information used to conduct the study must be 
accessible to the department, the Savings and Loan Department, and 
the legislature.  The department shall prepare a consolidated 
analysis and recapitulation of the information used to conduct the 
study and shall make the analysis and recapitulation available to 
the public.  The department shall ensure that the analysis and 
recapitulation of the information used to conduct the study contain 
only aggregate data and do not contain data specific to any 
mortgage.
	(h)  Except as provided by other law, private, confidential, 
and privileged information obtained for the production of any 
public reports is the property of the parties to the mortgage and is 
not subject to the disclosure provisions of Chapter 552.
	(i)  The department shall report to the governor, the 
lieutenant governor, and the speaker of the house of 
representatives on the study and its results not later than 
September 1, 2006.
	(j)  To conduct the study, the department may use money 
available under Section 1372.006(a-1), and the department or 
advisory committee may seek and accept grants and donations.
	(k)  This section expires February 1, 2007.                             
	SECTION 2.  Section 1372.006, Government Code, is amended by 
adding Subsection (a-1) to read as follows:
	(a-1)  In addition to being used in the affordable housing 
research and information program under Section 2306.259, money 
transferred to the Texas Department of Housing and Community 
Affairs may be used by the department to conduct the study regarding 
residential foreclosures, as provided by Section 2306.260.  This 
subsection expires February 1, 2007.
	SECTION 3.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2005.