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A BILL TO BE ENTITLED |
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AN ACT |
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relating to the duties of a mortgage servicer of certain |
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residential mortgage loans. |
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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. RESIDENTIAL MORTGAGE SERVICERS |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 397.001. DEFINITION. In this chapter, “mortgagee” and |
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“mortgage servicer” have the meanings assigned by Section 51.0001, |
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Property Code. |
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Sec. 397.002. APPLICABILITY. This chapter applies only to |
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a loan secured by a first lien on residential real property that: |
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(1) is not a federally related mortgage loan, as |
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defined by 12 U.S.C. Section 2602; and |
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(2) is serviced by a mortgage servicer other than the |
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mortgagee of the loan. |
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[Sections 397.003-397.050 reserved for expansion] |
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SUBCHAPTER B. DEBTOR REQUESTS FOR INFORMATION |
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Sec. 397.051. RECORDKEEPING. A mortgage servicer shall |
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maintain written or electronic records of each written request for |
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information regarding a dispute or error involving the debtor’s |
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account until the loan is paid in full, otherwise satisfied, or |
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sold. |
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Sec. 397.052. PROVISION OF GENERAL INFORMATION ON REQUEST. |
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(a) A mortgage servicer shall provide the following to a debtor in |
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response to a debtor’s written request: |
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(1) a copy of the original note or, if the original |
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note is unavailable, an affidavit of lost note; and |
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(2) a statement that: |
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(A) identifies and itemizes all fees and charges |
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assessed under the loan transaction and provides a full payment |
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history identifying in a clear and conspicuous manner all of the |
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debits, credits, application of and disbursement of all payments |
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received from or for the benefit of the debtor, and other activity |
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on the loan, including any escrow or suspense account activity; and |
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(B) covers the two years preceding the receipt of |
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the request or the period for which the servicer has serviced the |
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loan, whichever is shorter. |
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(b) If the mortgage servicer claims that delinquent or |
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outstanding sums were owed on the loan before the two-year period |
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preceding the receipt of the request under Subsection (a) or before |
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the servicer began servicing the loan, whichever is shorter, the |
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servicer shall provide an account history beginning with the |
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earliest month for which the servicer claims outstanding sums were |
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owed on the loan and ending on the date of the request for |
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information. For purposes of this subsection, the date of the |
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request for information is presumed to be not later than the 30th |
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day before the date the servicer receives the request. |
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(c) A mortgage servicer must provide a statement under |
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Subsection (a) on or before the 25th business day after the date the |
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servicer receives a written request from the debtor that: |
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(1) includes or otherwise enables the servicer to |
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identify the name and account of the debtor; and |
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(2) includes a statement that the account is or may be |
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in error or otherwise provides sufficient detail to the servicer |
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regarding information sought by the debtor. |
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Sec. 397.053. PROVISION OF INFORMATION REGARDING DISPUTE OR |
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ERROR. (a) A mortgage servicer shall provide a written statement |
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to a debtor in response to a debtor’s written request for |
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information regarding a dispute or error involving the debtor’s |
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account that includes the following information, if requested: |
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(1) whether the account is current and an explanation |
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of any default and the date the account went into default; |
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(2) the current balance due on the loan, including the |
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principal due, the amount of any funds held in a suspense account, |
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the amount of any escrow balance known to the servicer, and whether |
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there are any escrow deficiencies or shortages known to the |
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servicer; |
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(3) the identity, address, and other relevant |
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information about the current holder, owner, or assignee of the |
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loan; and |
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(4) the telephone number and mailing address of a |
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servicer representative with the information and authority to |
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answer questions and resolve disputes. |
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(b) A mortgage servicer must provide a statement under |
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Subsection (a) on or before the 10th day after the date the servicer |
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receives a written request from the debtor that: |
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(1) includes or otherwise enables the servicer to |
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identify the name and account of the debtor; and |
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(2) includes a statement that the account is or may be |
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in error or otherwise provides sufficient detail to the servicer |
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regarding information sought by the debtor. |
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[Sections 397.054-397.100 reserved for expansion] |
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SUBCHAPTER C. REMEDIES |
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Sec. 397.101. ENFORCEMENT GENERALLY. The Department of |
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Savings and Mortgage Lending, the attorney general, or any party to |
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a loan to which this chapter applies may enforce this chapter. |
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Sec. 397.102. ACTION BY DEBTOR. In addition to any other |
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legal and equitable remedy available, a debtor injured by a |
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violation of this chapter may bring an action for recovery of actual |
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damages, including reasonable attorney’s fees. |
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SECTION 2. This Act takes effect September 1, 2011. |
