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A BILL TO BE ENTITLED
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AN ACT
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relating to reporting of certain information regarding foreclosure |
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sales of residential real property. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter D, Chapter 2306, Government Code, is |
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amended by adding Section 2306.084 to read as follows: |
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Sec. 2306.084. MORTGAGE DEFAULT AND FORECLOSURE DATA |
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COLLECTION AND REPORT. (a) The board shall prescribe the form and |
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content of the forms to be filed with the county clerk under Section |
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51.0023, Property Code, and procedures for a county clerk to submit |
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the data collected under that section to the department. |
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(b) The form prescribed for submission by a mortgage |
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servicer under Section 51.0023(a), Property Code, must request |
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information about the property, the debtor, and other facts |
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surrounding the foreclosure, including: |
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(1) the type of lien being foreclosed, as listed in |
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Section 50, Article XVI, Texas Constitution; |
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(2) the initial interest rate of the loan; |
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(3) the origination and maturity dates of the loan; |
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(4) the initial amount of the debt; |
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(5) whether the loan allows negative amortization or |
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allows the payment of interest only; |
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(6) whether the interest rate could change and, if so, |
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the minimum and maximum rates, the index used, the amount of the |
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margin, how often the rate could adjust, how much the rate could |
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adjust, and the current interest rate being charged; |
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(7) whether the loan allows for a scheduled payment |
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that is more than twice as large as the average of earlier scheduled |
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monthly payments; |
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(8) whether the loan has a prepayment penalty or a |
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universal default provision in which it allows for a change in the |
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interest rate when there is a default by the debtor on any |
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obligation to the lender or any other lender or there is a decrease |
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in the debtor's credit score; |
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(9) the type of default; |
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(10) demographics of the debtor; |
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(11) whether the property was the debtor's residence; |
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(12) the zip code of the property subject to sale; and |
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(13) any other information the department finds |
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appropriate to request from the mortgage servicer. |
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(c) The form prescribed for submission by a purchaser of |
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residential real property under Section 51.0023(c), Property Code, |
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must request: |
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(1) information identifying the property purchased; |
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(2) the date of the foreclosure sale; and |
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(3) any other information the department finds |
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appropriate to request. |
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(d) The county clerk shall submit the data collected under |
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Section 51.0023, Property Code, to the department monthly. The |
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department shall make the data submitted available to the public on |
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the department's Internet website. |
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(e) Not later than January 1 of each year, the department |
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shall submit a report to the governor, lieutenant governor, speaker |
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of the house of representatives, and attorney general regarding the |
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data collected under this section. The department shall make the |
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report required under this subsection available to the public on |
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the department's Internet website. |
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SECTION 2. Chapter 51, Property Code, is amended by adding |
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Section 51.0023 to read as follows: |
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Sec. 51.0023. DATA COLLECTION. (a) A notice of sale filed |
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with the county clerk under Section 51.002(b) regarding residential |
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real property must include a completed and sworn form prescribed by |
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the board of the Texas Department of Housing and Community Affairs |
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under Section 2306.084(b), Government Code. |
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(b) If information requested by the form is unknown by the |
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mortgage servicer, the mortgage servicer must provide the |
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information that is known and file an affidavit with the county |
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clerk based on personal knowledge that the mortgage servicer made a |
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diligent inquiry and has been unable to locate the information |
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requested. |
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(c) A person who purchases residential real property at a |
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foreclosure sale must file with the county clerk of each county in |
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which the property is located, not later than the 10th day after the |
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date of the foreclosure sale: |
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(1) the deed to the property for recording; and |
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(2) a completed and sworn form prescribed by the board |
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of the Texas Department of Housing and Community Affairs under |
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Section 2306.084(c), Government Code. |
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(d) The county clerk may: |
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(1) accept data required to be submitted on a form |
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required to be filed under this section in an electronic form |
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instead of by filing if the submission is sworn and the date of |
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submission is recorded; or |
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(2) authorize the entry of data electronically in the |
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county clerk's offices. |
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SECTION 3. (a) Not later than November 1, 2009, the board |
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of the Texas Department of Housing and Community Affairs shall |
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prescribe the forms and procedures required by Section 2306.084, |
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Government Code, as added by this Act. |
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(b) Except as provided by this section, Section 51.0023, |
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Property Code, as added by this Act, applies only to a sale of |
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residential real property in which notice of sale under Section |
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51.002, Property Code, is provided on or after December 1, 2009. A |
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sale in which notice of sale is provided before December 1, 2009, is |
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subject to the law in effect immediately before the effective date |
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of this Act, and that law is continued in effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2009. |