79R5457 MFC-D

By:  Chavez                                                       H.B. No. 1582



A BILL TO BE ENTITLED

AN ACT

relating to a study of subprime mortgage lending practices 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 SUBPRIME MORTGAGE LENDING 
PRACTICES.  (a)  The department shall conduct a study to examine 
subprime mortgage lending practices in Bexar, Cameron, Dallas, El 
Paso, and Travis Counties.  The study must:
		(1)  identify common predatory subprime mortgage 
lending practices in those counties;
		(2)  using the most recent information published by the 
United States Census Bureau, determine the subprime mortgage 
lending rates for extremely low, very low, and low income 
individuals and families in each census tract in a county studied 
under this section; and
		(3)  for each census tract, analyze the general 
relationship between subprime mortgage lending and foreclosure 
rates, including the impact of subprime mortgage lending on those 
rates.
	(b)  The department may contract with an appropriate 
organization to conduct the study on the department's behalf.
	(c)  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.
	(d)  To conduct the study, the department or organization may 
use money available for the affordable housing research and 
information program under Section 2306.259.
	(e)  This section expires February 1, 2007.                             
	SECTION 2.  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.