83R4625 DDT-F
 
  By: Canales H.B. No. 1441
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to accounting and payoff statements for certain
  seller-financed residential loans; providing a penalty.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 343, Finance Code, is amended by adding
  Subchapter D to read as follows:
  SUBCHAPTER D. SELLER-FINANCED RESIDENTIAL LOANS
         Sec. 343.301.  APPLICATION. This subchapter applies only to
  a seller-financed loan secured by a purchase money lien on
  residential real property that is not a federally related mortgage
  loan, as defined by 12 U.S.C. Section 2602.
         Sec. 343.302.  ANNUAL ACCOUNTING STATEMENT REQUIRED.  (a)
  The lender shall provide to the borrower an accounting statement in
  January of each year for the term of the loan. If the lender mails
  the statement to the borrower, the statement must be postmarked not
  later than January 31.
         (b)  The accounting statement must include the following
  information:
               (1)  the amount paid toward the outstanding balance of
  the loan during the preceding calendar year, including separate
  amounts showing the total amount applied to interest and the total
  amount applied to principal;
               (2)  the remaining principal balance owed on the loan;
               (3)  the number of payments remaining on the loan;
               (4)  the amounts paid to taxing authorities on the
  borrower's behalf if collected by the lender; and
               (5)  the amounts paid to insure the property on the
  borrower's behalf if collected by the lender.
         (c)  Except as provided by Section 343.304, in addition to
  any other legal and equitable remedy available, a lender under this
  section who fails to comply with this section is liable to a
  borrower who is injured by the violation for:
               (1)  a penalty in the amount of $500;
               (2)  actual damages;
               (3)  court costs; and
               (4)  reasonable attorney's fees.
         Sec. 343.303.  PAYMENT CONSIDERED TIMELY.  In a proceeding
  related to a loan to which this subchapter applies, including an
  action brought under Section 343.302(c), a loan payment is
  considered to have been paid on the due date by the borrower if the
  payment came due during a calendar year for which the lender did not
  provide a required accounting statement to the borrower under
  Section 343.302.
         Sec. 343.304.  OTHER PENALTIES AND LIABILITIES NOT
  APPLICABLE. Chapter 349 does not apply to a violation of this
  subchapter.
         SECTION 2.  Section 343.106, Finance Code, is amended by
  adding Subsection (h) to read as follows:
         (h)  For purposes of providing a payoff statement required
  under this section for a seller-financed loan to which Subchapter D
  applies, a loan payment made to the lender is considered to have
  been paid on the due date by the borrower if the payment came due
  during a calendar year for which the lender did not provide a
  required accounting statement to the borrower under Section
  343.302.
         SECTION 3.  A lender is not required to provide an accounting
  statement required by Section 343.302, Finance Code, as added by
  this Act, before January 1, 2014.
         SECTION 4.  This Act takes effect September 1, 2013.