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A BILL TO BE ENTITLED
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AN ACT
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relating to escrow payments for a loan secured by a new dwelling. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 343, Finance Code, is |
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amended by adding Section 343.107 to read as follows: |
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Sec. 343.107. DETERMINATION OF INITIAL AMOUNT OF ESCROW |
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PAYMENTS ON LOAN SECURED BY NEW DWELLING. (a) In this section, |
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"mortgage servicer" has the meaning assigned by Section 51.0001, |
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Property Code. |
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(b) This section applies only to a home loan secured by real |
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property on which a dwelling has been constructed that is not |
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included on the appraisal roll of the appraisal district that |
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appraises the property for ad valorem tax purposes because the |
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dwelling is a new improvement. |
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(c) Subject to 12 C.F.R. Section 1024.17, if an escrow |
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account is created for the home loan, the lender or mortgage |
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servicer, as applicable, shall make a good-faith effort to ensure |
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that the amount the borrower is initially required to pay into the |
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escrow account for purposes of payment of the ad valorem taxes |
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imposed on the property is reasonably likely to be sufficient to pay |
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the taxes based on all available evidence, including the probable |
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effect of the newly constructed dwelling on the appraised value, |
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and the market value of comparable improved residential properties |
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in the market area as determined by the appraisal districts that |
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appraise those properties for ad valorem tax purposes as |
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applicable. |
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(d) A lender or mortgage servicer's failure to ensure that |
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the amount paid into escrow is sufficient to pay the taxes as |
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described by Subsection (c) does not affect the lender or mortgage |
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servicer's security interest in the real property that secures the |
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home loan. |
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(e) This section does not create a cause of action. |
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SECTION 2. The change in law made by this Act applies to a |
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loan closed on or after the effective date of this Act. A loan |
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closed before the effective date of this Act is governed by the law |
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in effect when the loan was closed, and the former law is continued |
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in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2017. |