BILL ANALYSIS |
C.S.H.B. 2063 |
By: Oliveira |
Business & Industry |
Committee Report (Substituted) |
BACKGROUND AND PURPOSE
Current law relating to the sale of real property under a contract lien sets out requirements for notice of the sale. Certain actions must be performed by the mortgage servicer of the debt before notice of the sale can be given. If the mortgage servicer has appointed a trustee or substitute trustee to exercise the power of sale, that appointment is customarily recorded. Concerned parties report that frequently, trustee appointments are not received in time to meet legal deadlines for foreclosures. Furthermore, it is reported that only about one-third of properties posted for sale actually go to sale, resulting in title records with recorded appointments related to sales that never occurred. The parties explain that this situation has resulted in confusion in official public records relating to the title to property and to which trustee has authority to act in exercising power of sale. The parties contend that such confusion may lead to litigation over extraneous documents, notarizations, and timing of recording.
C.S.H.B. 2063 seeks to reduce confusion in land title records and provide a safe harbor to reduce procedural litigation.
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CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
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RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
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ANALYSIS
C.S.H.B. 2063 amends the Property Code to require the recording of certain documents concerning real property subject to a foreclosure sale that are received by a county clerk in a specified manner and to specify that such documents serve as notice of the matter document. The bill requires such a document to be accepted for recording if it is attached as an exhibit to a deed that conveys title from a trustee or substitute trustee to a purchaser at a foreclosure sale and that meets the original signature requirements for recording or to an affidavit of a trustee or substitute trustee that meets the original signature requirements for recording and relates to a foreclosure sale. The bill specifies that these provisions do not prevent the recording of documents in any other manner allowed by law.
C.S.H.B. 2063 makes the appointment or authorization of a trustee or substitute trustee made in a notice of the sale of real property under a contract lien effective as of the date of the notice if the notice complies with statutory provisions governing such sales, discloses the name and a street address for the trustee or substitute trustee, is signed by an attorney or agent of the mortgagee or mortgage servicer, and contains a specified statement in all capital letters and boldface type.
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EFFECTIVE DATE
September 1, 2015.
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COMPARISON OF ORIGINAL AND SUBSTITUTE
While C.S.H.B. 2063 may differ from the original in minor or nonsubstantive ways, the following comparison is organized and formatted in a manner that indicates the substantial differences between the introduced and committee substitute versions of the bill.
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