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A BILL TO BE ENTITLED
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AN ACT
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relating to the satisfaction of a reverse mortgage loan after the |
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death of the last surviving borrower. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle B, Title 4, Finance Code, is amended by |
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adding Chapter 343A to read as follows: |
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CHAPTER 343A. REVERSE MORTGAGE LOANS |
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Sec. 343A.001. DEFINITION. In this chapter, "immediate |
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family member" means a person who is within the first degree of |
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consanguinity or affinity, as determined under Chapter 573, |
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Government Code. |
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Sec. 343A.002. SATISFACTION OF REVERSE MORTGAGE LOAN AFTER |
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DEATH OF LAST SURVIVING BORROWER. (a) This section applies only to |
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an heir who is an immediate family member of a borrower. |
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(b) After the death of the last surviving borrower of a |
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reverse mortgage loan secured by the borrower's residence, the |
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lender shall allow an heir who inherits the residence not less than |
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six months after the date of the death of the borrower to satisfy |
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the loan before beginning the foreclosure process on the residence. |
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SECTION 2. To the extent of a conflict between Chapter 343A, |
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Finance Code, as added by this Act, and a provision of a reverse |
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mortgage loan agreement entered into before the effective date of |
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this Act, the provision of the reverse mortgage loan agreement |
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prevails. |
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SECTION 3. This Act takes effect September 1, 2021. |