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A BILL TO BE ENTITLED
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AN ACT
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relating to the provision of accounting statements by mortgage |
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servicers for certain loans secured by a lien on residential real |
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property. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Title 5, Finance Code, is amended by adding |
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Chapter 397 to read as follows: |
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CHAPTER 397. ACCOUNTING STATEMENTS FOR CERTAIN HOME LOANS REQUIRED |
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Sec. 397.001. DEFINITION. In this chapter, "mortgage |
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servicer" has the meaning assigned by Section 51.0001, Property |
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Code. |
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Sec. 397.002. APPLICABILITY OF CHAPTER. This chapter |
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applies only to a loan secured by a first or subordinate lien on |
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residential real property that is not: |
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(1) a federally related mortgage loan, as defined by |
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12 U.S.C. Section 2602; |
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(2) a loan that is made by a credit union regulated by |
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the Credit Union Department; or |
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(3) a loan that is primarily for business, commercial, |
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or agricultural purposes, or for temporary financing, such as a |
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construction loan, as referred to under 12 U.S.C. Section 2602. |
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Sec. 397.003. ANNUAL ACCOUNTING STATEMENT. A mortgage |
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servicer shall provide to the borrower an annual statement in |
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January of each year for the term of the loan. The statement must |
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clearly and conspicuously state the following information: |
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(1) the amount of each payment that was received by the |
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mortgage servicer as payment toward the loan during the preceding |
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calendar year; |
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(2) how each payment described by Subdivision (1) was |
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applied to the borrower's account, including information showing |
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the amount of each payment that was applied to: |
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(A) the borrower's principal obligation under |
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the loan; |
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(B) the interest charged on the loan; |
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(C) any escrow account associated with the loan; |
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and |
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(D) any fee or other charge assessed against the |
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borrower during the preceding calendar year; and |
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(3) the outstanding balance of the borrower's |
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principal obligation under the loan. |
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Sec. 397.004. ACTION BY BORROWER. (a) In addition to any |
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other legal and equitable remedy available, a borrower injured by a |
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violation of this chapter may bring an action: |
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(1) to obtain an order requiring compliance with this |
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chapter; and |
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(2) to recover: |
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(A) any actual damages; and |
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(B) $100 for each violation of this chapter. |
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(b) A borrower who prevails in an action under this section |
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may recover reasonable attorney's fees. |
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SECTION 2. This Act takes effect September 1, 2017. |