Bill Text: TX SB830 | 2017-2018 | 85th Legislature | Enrolled
Bill Title: Relating to the provision of accounting statements by mortgage servicers for certain loans secured by a lien on residential real property.
Sponsorship: Partisan Bill (Democrat 2)
Status: (Vetoed) 2017-06-15 - Vetoed by the Governor [SB830 Detail]
Download: Texas-2017-SB830-Enrolled.html
| S.B. No. 830 | ||
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| 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 | ||
