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A BILL TO BE ENTITLED
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AN ACT
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relating to requirements for mortgage servicers in connection with |
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loans for the purchase of residential property. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 343, Finance Code, is amended by adding |
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Subchapter D to read as follows: |
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SUBCHAPTER D. REQUIREMENTS FOR MORTGAGE |
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SERVICERS OF HOME LOANS |
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Sec. 343.301. DEFINITION. In this subchapter, "mortgage |
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servicer" has the meaning assigned by Section 51.0001, Property |
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Code. |
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Sec. 343.302. SINGLE POINT OF CONTACT FOR HOME LOAN |
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INQUIRIES. (a) Not later than the 30th day after the date a |
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mortgage servicer begins servicing a home loan, the mortgage |
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servicer shall provide to the borrower in writing the name and |
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telephone number of a person employed by the mortgage servicer who |
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will serve as the borrower's single point of contact within the |
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mortgage servicer's office with respect to all inquiries related to |
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the home loan. |
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(b) The person serving as the borrower's point of contact |
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under Subsection (a) shall ensure that the borrower is properly and |
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correctly informed regarding any loan modification plan entered |
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into between the mortgage servicer and the borrower or any other |
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modification of loan terms. |
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Sec. 343.303. NOTICE OF ASSIGNMENT, SALE, OR OTHER TRANSFER |
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OF LOAN SERVICING. (a) Except as provided by Subsection (d), a |
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mortgage servicer shall notify the borrower in writing of any |
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assignment, sale, or other transfer of the servicing of a home loan |
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to any other person. |
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(b) The notice required by Subsection (a) must contain: |
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(1) the effective date of the transfer; |
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(2) the name, address, and telephone number of the |
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transferee mortgage servicer; |
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(3) the name and telephone number of an individual |
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employed by, or the office or department of, the transferor |
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mortgage servicer that can be contacted by the borrower to answer |
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inquiries relating to the transfer of servicing; |
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(4) the name and telephone number of an individual |
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employed by, or the office or department of, the transferee |
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mortgage servicer that can be contacted by the borrower to answer |
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inquiries relating to the transfer of servicing; and |
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(5) the date on which the transferor mortgage servicer |
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who is servicing the mortgage loan before the assignment, sale, or |
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other transfer will cease to accept payments relating to the loan |
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and the date on which the transferee mortgage servicer will begin to |
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accept the payments. |
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(c) A transferor mortgage servicer shall provide the notice |
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required by Subsection (a) by certified mail, return receipt |
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requested, not later than the 15th day before the effective date of |
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the assignment, sale, or other transfer of the servicing of the home |
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loan. |
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(d) A transferor mortgage servicer or transferee mortgage |
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servicer is not required to provide notice of an assignment, sale, |
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or other transfer of the servicing of a home loan as required by |
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this section if the lender provides to the borrower, at settlement |
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with respect to the property for the purchase of which the loan is |
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made, written notice of the assignment, sale, or other transfer of |
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the servicing of the loan and that notice contains the information |
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required by Subsection (b). |
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Sec. 343.304. LIABILITY FOR CERTAIN VIOLATIONS UNDER THIS |
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SUBCHAPTER. (a) A mortgage servicer that violates Section 343.303 |
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is liable to the borrower for: |
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(1) any actual damages to the borrower as a result of |
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the violation; and |
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(2) any additional damages the court allows, in the |
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case of a pattern or practice of violations of Section 343.303, in |
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an amount not to exceed $2,000. |
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(b) In addition to the amounts awarded under Subsection (a), |
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a mortgage servicer who is liable under this section is liable for |
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court costs and reasonable attorney's fees incurred in connection |
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with the action. |
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SECTION 2. Section 51.002, Property Code, is amended by |
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adding Subsection (e-1) to read as follows: |
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(e-1) The mortgage servicer shall file an affidavit |
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described by Subsection (e) and a copy of the certified mail receipt |
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and signature record for the notice sent to the debtor under |
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Subsection (d) with the county clerk for recording in the deed |
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records. A trustee may not exercise a power of sale under this |
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section with respect to real property used as the debtor's |
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residence unless the affidavit and the certified mail receipt and |
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signature record are filed under this subsection. |
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SECTION 3. Section 51.002, Property Code, as amended by |
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this Act, applies only to a sale of residential real property for |
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which notice of default under that section is provided on or after |
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the effective date of this Act. A sale in which notice of default is |
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provided before the effective date of this Act is subject to the law |
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in effect immediately before that date, and that law is continued in |
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effect for that purpose. |
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SECTION 4. This Act takes effect January 1, 2014. |