80R1289 HLT-D

By: Ellis S.B. No. 645

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 B, Chapter 343, Finance Code, is amended by adding Section 343.105 to read as follows:

Sec. 343.105. STUDY REGARDING RESIDENTIAL FORECLOSURES. (a) In this section, "School of Public Affairs" means the Barbara Jordan-Mickey Leland School of Public Affairs at Texas Southern University.

(b) The School of Public Affairs shall conduct a study to examine mortgage foreclosure rates in the Houston-Sugar Land-Baytown Metropolitan Statistical Area, as defined by the U.S. Office of Management and Budget, and shall establish an advisory committee to direct the focus of the study. The advisory committee shall be composed of:

(1) the director of the Texas Department of Housing and Community Affairs or the director's representative;

(2) the savings and loan commissioner or the commissioner's representative;

(3) four members appointed by the director of the Texas Department of Housing and Community Affairs who represent community and consumer interests including a representative of the Houston Association of Realtors;

(4) four members appointed by the savings and loan commissioner who represent the mortgage lending industry; and

(5) the dean of the School of Public Affairs.

(c) The dean of the School of Public Affairs serves as chair of the advisory committee.

(d) The advisory committee established under Subsection (b) shall address in the study the causes of foreclosures in the metropolitan statistical area from the perspective of the borrower, lender, mortgage originator, mortgage services provider, housing developer, secondary market representative, industry oversight agency, federal and state prosecutor, and consumer advocate.

(e) The advisory committee shall determine the methodology to be used in conducting the study. The study must be based on original research at the level of the individual borrower, including personal interviews with borrowers.

(f) All findings of the advisory committee must be approved by a majority of the members of the advisory committee.

(g) 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.

(h) The School of Public Affairs 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, 2008.

(i) This section expires February 1, 2009.

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, 2007.