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Amend CSHB 1831 (house committee report) by adding the
following appropriately numbered SECTION to the bill and
renumbering subsequent SECTIONS of the bill accordingly:
SECTION ____. Title 5, Finance Code, is amended by adding
Chapter 397 to read as follows:
CHAPTER 397. MORTGAGE SERVICERS
Sec. 397.001. DEFINITIONS. In this chapter, "mortgage
servicer" and "mortgagee" have the meanings assigned by Section
51.0001, Property Code.
Sec. 397.002. INTEREST ON DISASTER REPAIR MONEY HELD BY
MORTGAGE SERVICER. (a) A mortgage servicer holding money for more
than 10 business days that is received from an insurance provider
for repairs to a mortgagee's property following a disaster declared
under Section 418.014, Government Code, shall pay interest to the
mortgagee.
(b) For purposes of interest payments, the interest shall
accrue from the time a mortgage servicer receives the money from an
insurance provider.
(c) The interest rate that applies for the first 10 days
after the money is received must be not less than the rate that the
mortgage servicer receives on money held in the account in which the
mortgage servicer held the money received from the insurance
provider.
(d) The interest rate that applies after the 10th day is the
minimum rate described by Subsection (c) plus two percent a year.