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Amend HB 2840 by adding the following appropriately numbered 
SECTION to the bill and renumbering subsequent SECTIONS 
accordingly:
	SECTION ____.  (a)  Title 2, Business & Commerce Code, is 
amended by adding Chapter 21 to read as follows:

CHAPTER 21.  REQUIRED NOTICE BY CERTAIN RESIDENTIAL FORECLOSURE 
CONSULTANTS

SUBCHAPTER A.  GENERAL PROVISIONS
	Sec. 21.001.  DEFINITIONS.  In this chapter:                            
		(1)  "Foreclosure consultant" means a person who 
performs, or represents that the person can or will perform, for 
compensation services in connection with the prevention or 
postponement of foreclosure proceedings against a homeowner's 
residential property or other services related to the foreclosure 
of the property.
		(2)  "Residence in foreclosure" means residential real 
property consisting of not more than four single-family dwelling 
units, at least one of which is occupied as the homeowner's 
principal place of residence, and against which a foreclosure 
action has been commenced.
	Sec. 21.002.  EXCEPTION FROM APPLICABILITY OF CHAPTER.  (a)  
Except as provided by Subsection (b), this chapter does not apply to 
the following persons who perform foreclosure consulting services:
		(1)  an attorney admitted to practice in this state who 
performs those services in relation to the attorney's 
attorney-client relationship with a homeowner or the beneficiary of 
the lien being foreclosed;
		(2)  a person who holds or is owed an obligation secured 
by a lien on a residence in foreclosure if the person performs those 
services in connection with the obligation or lien;
		(3)  a person who regulates banks, trust companies, 
savings and loan associations, credit unions, or insurance 
companies under the laws of this state or the United States if the 
person performs those services as part of the person's normal 
business activities;
		(4)  an affiliate of a person described by Subdivision 
(3) if the affiliate performs those services as part of the 
affiliate's normal business activities;
		(5)  a judgment creditor of the homeowner of the 
residence in foreclosure, if:
			(A)  the legal action giving rise to the judgment 
was commenced before the notice of default required under Section 
5.064 or 51.002(d), Property Code; and
			(B)  the judgment is recorded in the real property 
records of the clerk of the county where the residence in 
foreclosure is located;
		(6)  a licensed title insurer, title insurance agent, 
or escrow officer authorized to transact business in this state if 
the person is performing those services in conjunction with title 
insurance or settlement services;
		(7)  a licensed real estate broker or real estate 
salesperson if the person is engaging in an activity for which the 
person is licensed;
		(8)  a mortgage broker or loan officer licensed under 
Chapter 156, Finance Code, if the person is engaging in an activity 
for which the person is licensed; or
		(9)  a nonprofit organization that provides solely 
counseling or advice to homeowners who have a residence in 
foreclosure or have defaulted on their home loans, unless the 
organization is an associate of the foreclosure consultant.
	(b)  This chapter applies to a person described by Subsection 
(a) if the person is providing foreclosure consulting services 
designed or intended to transfer title, directly or indirectly, to 
a residence in foreclosure to that person or the person's 
associate.

[Sections 21.003-21.050 reserved for expansion]

SUBCHAPTER B.  NOTICE
	Sec. 21.051.  REQUIRED DISCLOSURE.  Before entering into a 
contract with a homeowner of a residence in foreclosure for the 
purchase of the services of a foreclosure consultant, the 
foreclosure consultant shall provide the homeowner written notice 
stating the following, in at least 14-point boldfaced type:

NOTICE REQUIRED BY TEXAS LAW

_______ (Name) or an associate of _________ (Name) cannot ask you to 
sign or have you sign any document that transfers any interest in 
your home or property to __________ (Name) or ___________ (Name's) 
associate.

_______ (Name) or ________ (Name's) associate cannot guarantee you 
that they will be able to refinance your home or arrange for you to 
keep your home.

You may, at any time, cancel or rescind this contract, without 
penalty of any kind.

If you want to cancel this contract, mail or deliver a signed and 
dated copy of this notice of cancellation or rescission, or any 
other written notice, indicating your intent to cancel or rescind 
to _________________ (Name and address of foreclosure consultant) 
at ________________________ (Address of foreclosure consultant, 
including facsimile and electronic mail address).

As part of any cancellation or rescission, you (the homeowner) must 
repay any money spent on your behalf by _____________________ (Name 
of foreclosure consultant) prior to receipt of this notice and as a 
result of this agreement, within 60 days, along with interest 
calculated at the rate of eight percent per year.
	(b)  Chapter 21, Business & Commerce Code, as added by this 
Act, applies only to a contract entered into on or after the 
effective date of this Act.  A contract entered into before the 
effective date of this Act is governed by the law in effect on the 
date the contract was entered into, and the former law is continued 
in effect for that purpose.