| |
| |
|
|
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. |