Bill Text: TX HB2713 | 2011-2012 | 82nd Legislature | Introduced
Bill Title: Relating to refinancing low-rate home loans involving natural disaster recovery funds.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2011-04-12 - Left pending in committee [HB2713 Detail]
Download: Texas-2011-HB2713-Introduced.html
| 82R9071 TRH-F | ||
| By: Thompson | H.B. No. 2713 | |
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| relating to refinancing low-rate home loans involving natural | ||
| disaster recovery funds. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter B, Chapter 343, Finance Code, is | ||
| amended by adding Section 343.1011 to read as follows: | ||
| Sec. 343.1011. REFINANCING OF LOAN MADE WITH DISASTER | ||
| RECOVERY FUNDS. (a) For purposes of this section, a low-rate home | ||
| loan, including an open-end account and notwithstanding Section | ||
| 343.002, is a home loan that at its inception carries an interest | ||
| rate two percentage points or more below the yield on treasury | ||
| securities having comparable periods of maturity to the loan | ||
| maturity, except that if the loan's interest rate is subject to | ||
| change, the maximum rate that may be charged at any time during the | ||
| loan shall be used instead of the rate at the loan's inception to | ||
| determine whether the loan is a low-rate home loan. | ||
| (b) A lender may not refinance, replace, or consolidate a | ||
| low-rate home loan directly made by a government or nonprofit | ||
| lender wholly or partly using or funded by community development | ||
| block grant disaster recovery funds before the seventh anniversary | ||
| of the date of the loan unless the new or consolidated loan has a | ||
| lower interest rate and requires payment of a lesser amount of | ||
| points and fees than the original loan or is a restructure to avoid | ||
| foreclosure. | ||
| (c) In addition to other remedies provided by law, a lien | ||
| does not attach to real property that is based on a loan made in | ||
| violation of this section. | ||
| SECTION 2. The changes in law made by this Act apply only to | ||
| a loan closed on or after the effective date of this Act. A loan | ||
| closed before the effective date of this Act is governed by the law | ||
| in effect when the loan was closed, and the former law is continued | ||
| in effect for that purpose. | ||
| SECTION 3. This Act takes effect September 1, 2011. | ||
