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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.