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A BILL TO BE ENTITLED
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AN ACT
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relating to the establishment of the foreclosure prevention |
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program. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 2306, Government Code, is amended by |
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adding Subchapter X-1 to read as follows: |
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SUBCHAPTER X-1. FORECLOSURE PREVENTION PROGRAM |
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Sec. 2306.531. DEFINITION. In this subchapter, "program" |
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means the foreclosure prevention program. |
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Sec. 2306.532. ESTABLISHMENT OF PROGRAM. The department |
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shall establish the foreclosure prevention program to: |
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(1) make financing and refinancing education and |
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assistance available to the public; and |
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(2) provide financial assistance to homeowners: |
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(A) facing foreclosure; or |
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(B) whose income is adversely affected by |
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circumstances such as unemployment, a reduction of wages or hours |
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of employment, illness, or the death of a spouse or other person |
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contributing to the income of a homeowner, to the extent that the |
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homeowner is unable to make mortgage payments on the home. |
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Sec. 2306.533. PROGRAM ADMINISTRATION. For purposes of the |
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program, the department shall: |
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(1) investigate and implement methods for |
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disseminating to homeowners and homebuyers information designed to |
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reduce and prevent foreclosures on homes in this state, including |
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information concerning: |
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(A) mortgage financing and refinancing options; |
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(B) home equity practices; |
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(C) predatory lending practices; and |
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(D) on request, a comparison of any financing or |
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refinancing terms being offered to an individual and terms |
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otherwise available to the individual; and |
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(2) establish eligibility requirements for homeowners |
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to receive financial assistance under the program. |
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Sec. 2306.534. FUNDING. The department shall seek and |
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apply for any available federal funding to finance the program. |
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Sec. 2306.535. RULES. The department shall adopt rules |
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necessary to implement the program. |
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SECTION 2. The Texas Department of Housing and Community |
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Affairs shall adopt any rules required by Subchapter X-1, Chapter |
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2306, Government Code, as added by this Act, not later than December |
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1, 2009. |
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SECTION 3. As soon as practicable, the Texas Department of |
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Housing and Community Affairs shall apply for and actively pursue |
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federal funding for purposes of the foreclosure prevention program |
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established under Subchapter X-1, Chapter 2306, Government Code, as |
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added by this Act. |
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SECTION 4. This Act takes effect September 1, 2009. |