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A BILL TO BE ENTITLED
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AN ACT
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relating to reporting of certain information regarding foreclosure |
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sales of residential real property. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter D, Chapter 2306, Government Code, is |
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amended by adding Section 2306.084 to read as follows: |
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Sec. 2306.084. MORTGAGE DEFAULT AND FORECLOSURE DATA |
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COLLECTION AND REPORT. (a) The board shall prescribe: |
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(1) the form and content of the form required to be |
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filed with the department by a foreclosing mortgage servicer under |
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Section 51.0023, Property Code; and |
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(2) procedures for a person to submit the sworn form to |
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the department electronically. |
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(b) The form must request information about the property, |
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the debtor, and other facts surrounding the foreclosure, including: |
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(1) the type of lien being foreclosed and, if |
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applicable, a reference to the appropriate lien authorization in |
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Section 50, Article XVI, Texas Constitution; |
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(2) the initial interest rate of the loan; |
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(3) the origination and maturity dates of the loan; |
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(4) the initial amount of the debt; |
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(5) whether the loan allows negative amortization or |
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allows the payment of interest only; |
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(6) whether the interest rate could change and, if so, |
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the minimum and maximum rates, the index used, the amount of the |
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margin, how often the rate could adjust, how much the rate could |
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adjust, and the current interest rate being charged; |
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(7) whether the loan allows for a scheduled payment |
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that is more than twice as large as the average of earlier scheduled |
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monthly payments; |
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(8) whether the loan has a prepayment penalty or a |
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universal default provision in which it allows for a change in the |
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interest rate when there is a default by the debtor on any |
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obligation to the lender or any other lender or there is a decrease |
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in the debtor's credit score; |
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(9) the type of default; |
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(10) demographics of the debtor as prescribed by the |
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board; |
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(11) whether the property was the debtor's residence; |
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(12) the zip code of the property subject to sale; and |
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(13) any other information the department finds |
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appropriate to request from the mortgage servicer. |
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(c) Not later than January 1 of each year, the department |
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shall submit a report to the governor, lieutenant governor, speaker |
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of the house of representatives, and attorney general regarding the |
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data collected under Section 51.0023, Property Code. |
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(d) The department shall make the data submitted under |
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Section 51.0023, Property Code, and the report required by |
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Subsection (c) available to the public on the department's Internet |
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website. |
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SECTION 2. Chapter 51, Property Code, is amended by adding |
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Section 51.0023 to read as follows: |
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Sec. 51.0023. DATA COLLECTION. (a) A mortgage servicer who |
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files a notice of sale under Section 51.002(b) regarding |
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residential real property must submit to the Texas Department of |
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Housing and Community Affairs a completed and sworn form prescribed |
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by the governing board of the department under Section 2306.084, |
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Government Code. The form must be submitted electronically in the |
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manner prescribed by the board. |
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(b) If information requested by the form is unknown by the |
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mortgage servicer, the mortgage servicer must provide the |
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information that is known and submit an affidavit to the Texas |
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Department of Housing and Community Affairs based on personal |
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knowledge that the mortgage servicer made a diligent inquiry and |
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has been unable to locate the information requested. |
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SECTION 3. (a) Not later than November 1, 2011, the |
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governing board of the Texas Department of Housing and Community |
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Affairs shall prescribe the forms and procedures required by |
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Section 2306.084, Government Code, as added by this Act. |
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(b) Except as provided by this section, Section 51.0023, |
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Property Code, as added by this Act, applies only to a sale of |
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residential real property in which notice of sale under Section |
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51.002, Property Code, is provided on or after December 1, 2011. |
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SECTION 4. This Act takes effect September 1, 2011. |