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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 establish the Texas savvy homeowner program to |
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make refinancing education and assistance available to all |
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individuals residing in a home for which they have received |
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mortgage loan assistance from the department or the Texas State |
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Affordable Housing Corporation, including assistance through |
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mortgage revenue bonds or through the department's allocation of |
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funds provided to the state under the Cranston-Gonzalez National |
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Affordable Housing Act (42 U.S.C. Section 12701 et seq.). |
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(b) Participation in the program is mandatory for |
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individuals receiving mortgage loan assistance from the department |
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or the corporation on or after September 1, 2009. Any mortgage loan |
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assistance issued on or after that date shall be provided to the |
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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: |
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(1) develop best practices for home refinancing; |
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(2) develop a curriculum for the provision of |
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individualized counseling to program participants that includes |
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information 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; and |
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(3) enter into a memorandum of understanding with the |
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corporation to: |
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(A) provide for direct administration of the |
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program by the department; or |
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(B) prepare and issue a request for proposal and |
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enter into a contract providing for the administration of the |
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program by a nonprofit corporation that is a housing counselor |
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certified by the United States Department of Housing and Urban |
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Development. |
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(b) 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 assistance from the department |
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or the 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 the mortgage loan. The notice must be provided not later than |
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the 60th day before the 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) provide the loan recipient with an individualized |
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counseling session on the phone or in person. |
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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. |