Bill Text: TX SB362 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to the satisfaction of a reverse mortgage loan after the death of the last surviving borrower.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2021-03-09 - Referred to Natural Resources & Economic Development [SB362 Detail]
Download: Texas-2021-SB362-Introduced.html
| 87R1830 SRA-D | ||
| By: Miles | S.B. No. 362 | |
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| relating to the satisfaction of a reverse mortgage loan after the | ||
| death of the last surviving borrower. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subtitle B, Title 4, Finance Code, is amended by | ||
| adding Chapter 343A to read as follows: | ||
| CHAPTER 343A. REVERSE MORTGAGE LOANS | ||
| Sec. 343A.001. DEFINITION. In this chapter, "immediate | ||
| family member" means a person who is within the first degree of | ||
| consanguinity or affinity, as determined under Chapter 573, | ||
| Government Code. | ||
| Sec. 343A.002. SATISFACTION OF REVERSE MORTGAGE LOAN AFTER | ||
| DEATH OF LAST SURVIVING BORROWER. (a) This section applies only to | ||
| an heir who is an immediate family member of a borrower. | ||
| (b) After the death of the last surviving borrower of a | ||
| reverse mortgage loan secured by the borrower's residence, the | ||
| lender shall allow an heir who inherits the residence not less than | ||
| six months after the date of the death of the borrower to satisfy | ||
| the loan before beginning the foreclosure process on the residence. | ||
| SECTION 2. To the extent of a conflict between Chapter 343A, | ||
| Finance Code, as added by this Act, and a provision of a reverse | ||
| mortgage loan agreement entered into before the effective date of | ||
| this Act, the provision of the reverse mortgage loan agreement | ||
| prevails. | ||
| SECTION 3. This Act takes effect September 1, 2021. | ||
