S.B. No. 830
 
 
 
 
AN ACT
  relating to the provision of accounting statements by mortgage
  servicers for certain loans secured by a lien on residential real
  property.
         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. ACCOUNTING STATEMENTS FOR CERTAIN HOME LOANS REQUIRED
         Sec. 397.001.  DEFINITION. In this chapter, "mortgage
  servicer" has the meaning assigned by Section 51.0001, Property
  Code.
         Sec. 397.002.  APPLICABILITY OF CHAPTER. This chapter
  applies only to a loan secured by a first or subordinate lien on
  residential real property that is not:
               (1)  a federally related mortgage loan, as defined by
  12 U.S.C. Section 2602;
               (2)  a loan that is made by a credit union regulated by
  the Credit Union Department;
               (3)  a loan that is primarily for business, commercial,
  or agricultural purposes, or for temporary financing, such as a
  construction loan, as referred to under 12 U.S.C. Section 2602; or
               (4)  a loan that is directly financed and serviced by a
  relative within the second degree of consanguinity or affinity of
  the borrower.
         Sec. 397.003.  ANNUAL ACCOUNTING STATEMENT. (a)  A mortgage
  servicer shall provide to the borrower an annual statement in
  January of each year for the term of the loan. The statement must be
  provided by mail, postmarked on or before January 31, and sent to
  the borrower at the borrower's last known address.
         (b)  The statement required by Subsection (a) must clearly
  and conspicuously state the following information:
               (1)  the amount of each payment that was received by the
  mortgage servicer as payment toward the loan during the preceding
  calendar year;
               (2)  how each payment described by Subdivision (1) was
  applied to the borrower's account, including information showing
  the amount of each payment that was applied to:
                     (A)  the borrower's principal obligation under
  the loan;
                     (B)  the interest charged on the loan;
                     (C)  any escrow account associated with the loan;
  and
                     (D)  any fee or other charge assessed against the
  borrower during the preceding calendar year; and
               (3)  the outstanding balance of the borrower's
  principal obligation under the loan.
         Sec. 397.004.  RECOURSE OF BORROWER FOR MORTGAGE SERVICER'S
  FAILURE TO TIMELY PROVIDE STATEMENT; LIABILITY OF MORTGAGE
  SERVICER.  (a)  If a borrower does not receive an annual statement
  within the time prescribed by Section 397.003(a), the borrower may
  request the statement from the mortgage servicer by sending a
  request to that effect to the mortgage servicer by certified mail,
  return receipt requested.
         (b)  Except as provided by Subsection (c), if, after
  receiving a request under Subsection (a), the mortgage servicer
  fails to provide the statement to the borrower on or before the 25th
  day after the date the mortgage servicer receives the request:
               (1)  the borrower is not liable for any fees,
  penalties, or late charges, or any other amounts except for any
  principal and interest that may be due for the preceding calendar
  year; and 
               (2)  if the mortgagee is not the mortgage servicer, the
  mortgage servicer is liable for paying the mortgagee:
                     (A)  any amount for which the borrower is no
  longer liable under Subdivision (1); and
                     (B)  any fee or other charge assessed against the
  borrower by the mortgagee as a result of, or consequential damages
  arising out of, the mortgage servicer's failure to comply with this
  section.
         (c)  Subsection (b) does not apply if, before the borrower
  requests an annual statement under this section, the mortgage
  servicer sends a default notice to the borrower at the borrower's
  last known address by certified mail, return receipt requested.
         SECTION 2.  This Act takes effect September 1, 2017.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 830 passed the Senate on
  May 10, 2017, by the following vote: Yeas 24, Nays 5, one present
  not voting; and that the Senate concurred in House amendment on
  May 25, 2017, by the following vote: Yeas 25, Nays 5, one present
  not voting.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 830 passed the House, with
  amendment, on May 23, 2017, by the following vote: Yeas 96,
  Nays 51, two present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor