79R7911 RMB-F
By: Carona S.B. No. 987
A BILL TO BE ENTITLED
AN ACT
relating to the authority of certain depository institutions and
mortgage brokers to receive compensation for preparing legal
documents in connection with residential mortgages.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 83.001, Government Code, is amended by
amending Subsection (b) and adding Subsection (d) to read as
follows:
(b) This section does not apply to:
(1) an attorney licensed in this state;
(2) a licensed real estate broker or salesperson
performing the acts of a real estate broker pursuant to Chapter
1101, Occupations Code; [or]
(3) a person performing acts relating to a transaction
for the lease, sale, or transfer of any mineral or mining interest
in real property; or
(4) a depository institution and its subsidiaries or
affiliates or a mortgage banker that performs an act relating to the
documentation of a residential mortgage loan by completing forms:
(A) to assign, release, or modify a lien; or
(B) that comply with the requirements of:
(i) the United States Department of Housing
and Urban Development or the United States Department of Veterans
Affairs;
(ii) the Federal National Mortgage
Association, the Federal Home Loan Mortgage Association, or the
Government National Mortgage Association; or
(iii) Section 341.502, Finance Code.
(d) In this section:
(1) "Affiliate," "depository institution," and
"subsidiary" have the meanings assigned by Section 31.002, Finance
Code.
(2) "Mortgage banker" has the meaning assigned by
Section 157.002, Finance Code.
(3) "Residential mortgage loan" means a debt secured
by a first lien on residential real property designed principally
for occupancy by one to four families that is created by a deed of
trust, security deed, or other security instrument. The term does
not include:
(A) a home equity line of credit under Section
50(a)(6), Article XVI, Texas Constitution;
(B) a reverse mortgage on a homestead under
Section 50(a)(7), Article XVI, Texas Constitution; or
(C) a loan for the construction of a new
residence.
SECTION 2. Section 83.002, Government Code, is amended to
read as follows:
Sec. 83.002. EXPENSES. This chapter does not prevent an
attorney or a person described in Section 83.001(b) from paying
secretarial, paralegal, or other ordinary and reasonable expenses
necessarily and actually incurred by the attorney for the
preparation of legal instruments.
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.