This website will be unavailable from Friday, April 26, 2024 at 6:00 p.m. through Monday, April 29, 2024 at 7:00 a.m. due to data center maintenance.

  82R5668 DAK/AJA-D
 
  By: Miles H.B. No. 2410
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to mortgage loans.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Sections 51.002(d) and (e), Property Code, are
  amended to read as follows:
         (d)  Notwithstanding any agreement to the contrary, the
  mortgage servicer of the debt shall serve a debtor in default under
  a security instrument imposing a [deed of trust or other] contract
  lien on real property and each other person having a recorded
  interest in the real property [used as the debtor's residence] with
  written notice by certified mail stating that the debtor is in
  default under the security instrument imposing the [deed of trust
  or other] contract lien, providing a full written disclosure of the
  terms of the security instrument, and giving the debtor and any
  other person entitled to the notice at least 30 [20] days to cure
  the default before notice of sale can be given under Subsection (b).
  The entire calendar day on which the notice required by this
  subsection is given, regardless of the time of day at which the
  notice is given, is included in computing the [20-day] notice
  period required by this subsection, and the entire calendar day on
  which notice of sale is given under Subsection (b) is excluded in
  computing the [20-day] notice period.
         (e)  Service of a notice under this section by certified mail
  is complete when the notice is deposited in the United States mail,
  postage prepaid and addressed to the person entitled to notice 
  [debtor] at the person's [debtor's] last known address. The
  affidavit of a person knowledgeable of the facts to the effect that
  service was completed is prima facie evidence of service.
         SECTION 2.  Section 51.0021, Property Code, is amended to
  read as follows:
         Sec. 51.0021.  NOTICE OF CHANGE OF ADDRESS [REQUIRED]. A
  debtor shall, and any other person entitled to notice from a
  mortgagee or mortgage servicer under this chapter may, inform the
  mortgage servicer of the debt in a reasonable manner of any change
  of the person's address [of the debtor] for purposes of providing
  notice to the person [debtor] under Section 51.002 or another
  provision of this chapter.
         SECTION 3.  Chapter 51, Property Code, is amended by adding
  Sections 51.0022 and 51.0023 to read as follows:
         Sec. 51.0022.  DISCLOSURE OF TERMS OF SECURITY INSTRUMENT.
  Not later than the 90th day after the date on which a mortgagee or
  the mortgagee's mortgage servicer receives a written request from a
  person having a recorded interest in real property that is subject
  to a contract lien in which the mortgagee has an interest, the
  mortgagee or mortgage servicer shall provide the person a full
  written disclosure of the terms of the security instrument.
         Sec. 51.0023.  JUDICIAL FORECLOSURE: NOTICE OF DEFAULT AND
  RIGHT TO CURE. (a) Before a mortgagee or mortgage servicer
  commences a judicial foreclosure proceeding, the mortgagee or
  mortgage servicer must serve each person having a recorded interest
  in the real property that is subject to the deed of trust or other
  contract lien being foreclosed, regardless of whether the person is
  liable on the debt secured by the contract lien, with written notice
  by certified mail stating that the debtor is in default under the
  security instrument imposing the contract lien, providing a full
  written disclosure of the terms of the security instrument, and
  giving the person at least 30 days to cure the default before a
  foreclosure proceeding can be commenced.
         (b)  The entire calendar day on which the notice required by
  this section is given, regardless of the time of day at which the
  notice is given, is included in computing the notice period
  required by this section, and the entire calendar day on which the
  judicial foreclosure proceeding is commenced is excluded in
  computing the notice period.
         (c)  Service of a notice under this section by certified mail
  is complete when the notice is deposited in the United States mail,
  postage prepaid and addressed to the person entitled to notice at
  the person's last known address. The affidavit of a person
  knowledgeable of the facts to the effect that service was completed
  is prima facie evidence of service.
         SECTION 4.  Subtitle B, Title 4, Finance Code, is amended by
  adding Chapter 343A to read as follows:
  CHAPTER 343A. REPAYMENT OF REVERSE MORTGAGE LOAN
         Sec. 343A.001.  DEFINITIONS.  In this chapter:
               (1)  "Personal representative" has the meaning
  assigned by Section 3, Texas Probate Code.
               (2)  "Reverse mortgage" means an extension of credit
  that meets the requirements of Sections 50(k)-(p), Article XVI,
  Texas Constitution.
         Sec. 343A.002.  PROCEDURES FOR REPAYMENT FOLLOWING DEATH OF
  BORROWERS. A lender who makes a reverse mortgage shall allow for
  the repayment of the advances made under the extension of credit
  after the death of all borrowers who entered into the loan as
  provided by this chapter.
         Sec. 343A.003.  REQUEST BY HEIR OR REPRESENTATIVE OF
  BORROWER'S ESTATE. (a) Following the death of all borrowers who
  entered into a reverse mortgage with a lender, a person who is an
  heir of the estate of the last surviving borrower may:
               (1)  establish with the lender that the person is an
  heir by:
                     (A)  showing that the person is named in the
  borrower's will as an heir entitled to all or part of the real
  property securing the reverse mortgage; or
                     (B)  showing evidence of filing an affidavit of
  the borrower's death with the recorder of deeds that establishes
  the person's identity as an heir entitled to the real property; and
               (2)  request a disclosure of the terms of the reverse
  mortgage and a statement of the amount of advances made under the
  extension of credit and the amount owed on the obligation.
         (b)  A personal representative of the last surviving
  borrower's estate may make a request under this section on behalf of
  an heir of the borrower if the representative establishes with the
  lender that the representative:
               (1)  is named in the will of the borrower to serve as
  personal representative of the estate; or
               (2)  has been appointed by a probate court to serve as
  personal representative of the estate.
         Sec. 343A.004.  DISCLOSURE. (a) A lender who receives a
  request under Section 343A.003 shall provide to the heir or
  representative making the request:
               (1)  a full written disclosure of the terms of the
  reverse mortgage and a statement that contains the information
  described by Section 343A.003(a)(2); and
               (2)  a written offer to the heirs for the repayment of
  the mortgage that:
                     (A)  allows the heir a repayment period of at
  least 15 years;
                     (B)  provides for interest to be charged at a rate
  not to exceed the average rate of interest charged on reverse
  mortgage loans on the date of the borrower's death; and
                     (C)  provides for a period of at least 90 days
  after the date the information is sent for the offer to be accepted.
         (b)  The information required under Subsection (a) must be
  mailed to the heir or the personal representative, by certified
  mail, return receipt requested, not later than the earlier of:
               (1)  the 90th day after the date the lender receives the
  request; or
               (2)  the 90th day before the date the lender commences
  any foreclosure proceedings.
         SECTION 5.  (a)  Sections 51.002(d) and (e), Property Code,
  as amended by this Act, apply to a foreclosure for which a notice of
  sale under Section 51.002(b), Property Code, is given on or after
  the effective date of this Act, unless the notice of default was
  given under Section 51.002(d), Property Code, before the effective
  date of this Act. A foreclosure for which the notice of default was
  given before the effective date of this Act is governed by the law
  in effect immediately before the effective date of this Act, and
  that law is continued in effect for that purpose.
         (b)  Chapter 343A, Finance Code, as added by this Act,
  applies to a reverse mortgage entered into by an individual whose
  death occurs on or after the effective date of this Act without
  regard to whether the mortgage was entered into before, on, or after
  the effective date of this Act.
         SECTION 6.  This Act takes effect September 1, 2011.