82R1349 JE-F

By: Rodriguez H.B. No. 213

A BILL TO BE ENTITLED

AN ACT

relating to the duties of a mortgage servicer of certain

residential mortgage loans.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Title 5, Finance Code, is amended by adding

Chapter 397 to read as follows:

CHAPTER 397. RESIDENTIAL MORTGAGE SERVICERS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 397.001. DEFINITION. In this chapter, "mortgage

servicer" has the meaning assigned by Section 51.0001, Property

Code.

Sec. 397.002. APPLICABILITY. This chapter applies only to

a loan secured by a first lien on residential real property that is

not a federally related mortgage loan, as defined by 12 U.S.C.

Section 2602.

[Sections 397.003-397.050 reserved for expansion]

SUBCHAPTER B. DEBTOR REQUESTS FOR INFORMATION

Sec. 397.051. RECORDKEEPING. A mortgage servicer shall

maintain written or electronic records of each written request for

information regarding a dispute or error involving the debtor's

account until the loan is paid in full, otherwise satisfied, or

sold.

Sec. 397.052. PROVISION OF GENERAL INFORMATION ON REQUEST.

(a) A mortgage servicer shall provide the following to a debtor in

response to a debtor's written request:

(1) a copy of the original note or, if the original

note is unavailable, an affidavit of lost note; and

(2) a statement that:

(A) identifies and itemizes all fees and charges

assessed under the loan transaction and provides a full payment

history identifying in a clear and conspicuous manner all of the

debits, credits, application of and disbursement of all payments

received from or for the benefit of the debtor, and other activity

on the loan, including any escrow or suspense account activity; and

(B) covers the two years preceding the receipt of

the request or the period for which the servicer has serviced the

loan, whichever is shorter.

(b) If the mortgage servicer claims that delinquent or

outstanding sums were owed on the loan before the two-year period

preceding the receipt of the request under Subsection (a) or before

the servicer began servicing the loan, whichever is shorter, the

servicer shall provide an account history beginning with the

earliest month for which the servicer claims outstanding sums were

owed on the loan and ending on the date of the request for

information. For purposes of this subsection, the date of the

request for information is presumed to be not later than the 30th

day before the date the servicer receives the request.

(c) A mortgage servicer must provide a statement under

Subsection (a) on or before the 25th business day after the date the

servicer receives a written request from the debtor that:

(1) includes or otherwise enables the servicer to

identify the name and account of the debtor; and

(2) includes a statement that the account is or may be

in error or otherwise provides sufficient detail to the servicer

regarding information sought by the debtor.

Sec. 397.053. PROVISION OF INFORMATION REGARDING DISPUTE OR

ERROR. (a) A mortgage servicer shall provide a written statement

to a debtor in response to a debtor's written request for

information regarding a dispute or error involving the debtor's

account that includes the following information, if requested:

(1) whether the account is current and an explanation

of any default and the date the account went into default;

(2) the current balance due on the loan, including the

principal due, the amount of any funds held in a suspense account,

the amount of any escrow balance known to the servicer, and whether

there are any escrow deficiencies or shortages known to the

servicer;

(3) the identity, address, and other relevant

information about the current holder, owner, or assignee of the

loan; and

(4) the telephone number and mailing address of a

servicer representative with the information and authority to

answer questions and resolve disputes.

(b) A mortgage servicer must provide a statement under

Subsection (a) on or before the 10th day after the date the servicer

receives a written request from the debtor that:

(1) includes or otherwise enables the servicer to

identify the name and account of the debtor; and

(2) includes a statement that the account is or may be

in error or otherwise provides sufficient detail to the servicer

regarding information sought by the debtor.

[Sections 397.054-397.100 reserved for expansion]

SUBCHAPTER C. REMEDIES

Sec. 397.101. ENFORCEMENT GENERALLY. The Department of

Savings and Mortgage Lending, the attorney general, or any party to

a loan to which this chapter applies may enforce this chapter.

Sec. 397.102. ACTION BY DEBTOR. In addition to any other

legal and equitable remedy available, a debtor injured by a

violation of this chapter may bring an action for recovery of actual

damages, including reasonable attorney's fees.

SECTION 2. This Act takes effect September 1, 2011.