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A BILL TO BE ENTITLED
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AN ACT
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relating to notification requirements regarding foreclosure |
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prevention assistance in connection with a home loan. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 343, Finance Code, is |
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amended by adding Section 343.106 to read as follows: |
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Sec. 343.106. NOTICE OF AVAILABLE FORECLOSURE PREVENTION |
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ASSISTANCE. (a) In this section, "foreclosure prevention |
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assistance" includes: |
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(1) outreach and marketing to inform homeowners in |
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danger of foreclosure of appropriate resources for assistance; |
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(2) connecting homeowners with entities that provide |
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foreclosure intervention counseling; and |
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(3) providing foreclosure intervention counseling. |
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(b) A lender, mortgage banker, or licensed mortgage broker |
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shall provide at the closing of a home loan a written notice to each |
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borrower on the loan regarding foreclosure prevention assistance. |
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(c) A lender for a home loan shall provide a borrower with |
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the same notice regarding foreclosure prevention assistance each |
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time the lender is: |
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(1) required to provide a notice of default under |
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Section 51.002(d), Property Code; or |
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(2) required by other law to provide the borrower |
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with: |
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(A) a delinquency notice; and |
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(B) a right to cure letter. |
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(d) The notice required by this section must be provided on |
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a separate document and contain information regarding foreclosure |
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prevention assistance in the form adopted under Subsection (e). |
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(e) The Texas Department of Housing and Community Affairs |
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and finance commission shall jointly adopt a foreclosure prevention |
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assistance notice form that contains the names, website addresses, |
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and hotline numbers for nonprofit organizations that provide |
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foreclosure prevention assistance in this state. In adopting the |
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notice under this section, the Texas Department of Housing and |
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Community Affairs and finance commission shall consider the ability |
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of a nonprofit organization to serve the entire state and whether |
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the nonprofit organization is able to provide homeowners with |
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regularly updated information regarding the availability of |
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federal foreclosure prevention assistance. |
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(f) The failure of a lender, mortgage banker, or licensed |
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mortgage broker to provide each borrower with a notice complying |
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with this section does not affect the validity or enforceability of |
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the home loan by any holder of the loan. |
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SECTION 2. (a) The Texas Department of Housing and |
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Community Affairs and the Finance Commission of Texas shall jointly |
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adopt the foreclosure prevention assistance notice form required by |
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Section 343.106, Finance Code, as added by this Act, as soon as |
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practicable after the effective date of this Act. |
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(b) Section 343.106(b), Finance Code, as added by this Act, |
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applies only to a loan closed on or after the date on which a notice |
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form is adopted under Subsection (a) of this section. A loan closed |
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before the date on which the notice form is adopted is governed by |
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the law in effect on the date the loan was closed, and the former law |
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is continued in effect for that purpose. |
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(c) Section 343.106(c), Finance Code, as added by this Act, |
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applies only to a notice or letter required to be sent by the lender |
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on or after the date on which a notice form is adopted under |
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Subsection (a) of this section. A notice or letter required to be |
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sent by the lender before the date on which the notice form is |
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adopted is governed by the law in effect on the date the loan was |
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closed, and the former law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2009. |