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A BILL TO BE ENTITLED
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AN ACT
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relating to the establishment of the Texas savvy homeowner program. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 2306, Government Code, is amended by |
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adding Subchapter OO to read as follows: |
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SUBCHAPTER OO. TEXAS SAVVY HOMEOWNER PROGRAM |
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Sec. 2306.2001. DEFINITION. In this subchapter, "program" |
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means the Texas savvy homeowner program. |
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Sec. 2306.2002. ESTABLISHMENT OF PROGRAM. (a) The |
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department shall, in coordination with the Texas State Affordable |
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Housing Corporation, the Department of Savings and Mortgage |
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Lending, the Office of Consumer Credit Commissioner, and local |
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housing finance corporations, establish the Texas savvy homeowner |
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program to make refinancing education and assistance available to |
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all individuals residing in a home for which they have received |
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mortgage loan, mortgage credit certificate, down payment, or other |
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loan assistance from the department, the Texas State Affordable |
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Housing Corporation, or a housing finance corporation, including |
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assistance through mortgage revenue bonds or through the |
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department's allocation of funds provided to the state under the |
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Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. |
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Section 12701 et seq.). |
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(b) Except as provided by Subsection (c), participation in |
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the program is voluntary. |
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(c) Participation in the program is mandatory for |
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individuals receiving mortgage loan, mortgage credit certificate, |
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down payment, or other loan assistance from the department, the |
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Texas State Affordable Housing Corporation, or a housing finance |
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corporation on or after December 1, 2009. Any assistance described |
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by this subsection that is issued on or after that date shall be |
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provided to the individual with information concerning: |
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(1) the requirements and procedures of the program; |
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and |
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(2) the contact information of the program |
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administrator. |
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Sec. 2306.2003. PROGRAM DEVELOPMENT AND ADMINISTRATION. |
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(a) The department shall, in coordination with the Texas State |
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Affordable Housing Corporation, the Department of Savings and |
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Mortgage Lending, the Office of Consumer Credit Commissioner, and |
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housing finance corporations, develop: |
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(1) best practices for home refinancing; and |
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(2) a curriculum for the provision of individualized |
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counseling to program participants that includes information |
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concerning: |
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(A) mortgage refinancing options; |
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(B) home equity practices; |
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(C) predatory lending practices; and |
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(D) a comparison of any refinancing terms being |
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offered to the individual and refinancing terms otherwise available |
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to the individual. |
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(b) The department shall: |
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(1) administer the program directly; or |
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(2) prepare and issue a request for proposal and enter |
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into a contract providing for the administration of the program by a |
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nonprofit corporation that: |
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(A) is a housing counselor certified by the |
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United States Department of Housing and Urban Development or the |
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department; and |
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(B) complies with any requirements imposed on the |
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program administrator in relation to the best practices and |
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curriculum developed by the department under Subsection (a). |
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(c) If the department does not administer the program, the |
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program administrator shall submit quarterly reports to the |
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department detailing the counseling services provided and whether |
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the counseling recipients obtained refinancing. |
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Sec. 2306.2004. MODIFICATION OF LOAN TERMS. (a) As a |
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condition of receiving mortgage loan, mortgage credit certificate, |
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down payment, or other loan assistance from the department, the |
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Texas State Affordable Housing Corporation, or a local housing |
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finance corporation, a program participant must agree to notify the |
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program administrator in writing of any intent to modify the terms |
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of any loan secured by the home in which the participant resides. |
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The notice must be provided not later than the 60th day before the |
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date the loan terms are modified. |
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(b) On receipt of notice under Subsection (a), the program |
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administrator shall: |
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(1) contact the loan recipient not later than the 30th |
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day after the date of receipt of the notice; and |
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(2) on the phone or in person, provide the loan |
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recipient with an individualized counseling session based on the |
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curriculum developed by the department under Section 2306.2003(a). |
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Sec. 2306.2005. RULES. The department may adopt rules |
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necessary to implement this subchapter. |
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SECTION 2. The Texas Department of Housing and Community |
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Affairs shall adopt any rules required by Subchapter OO, Chapter |
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2306, Government Code, as added by this Act, not later than December |
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1, 2009. |
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SECTION 3. This Act takes effect September 1, 2009. |