Bill Text: TX HB4328 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to certain property tax lenders, property tax loans, and tax liens.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2019-03-25 - Referred to Pensions, Investments & Financial Services [HB4328 Detail]
Download: Texas-2019-HB4328-Introduced.html
By: Clardy | H.B. No. 4328 |
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relating to certain property tax lenders, property tax loans, and | ||
tax liens. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 32.06, Tax Code, is amended by amending | ||
Subsections (a-2), (d), (f-1), and (h) to read as follows: | ||
(a-2) Except as provided by Subsection (a-8), a tax lien may | ||
be transferred to the person who pays the taxes on behalf of the | ||
property owner under the authorization described by Subsection | ||
(a-1) for: | ||
(1) taxes that are delinquent at the time of payment; | ||
or | ||
(2) taxes that are due but not delinquent at the time | ||
of payment if the property: | ||
(A) is not subject to a recorded mortgage lien; | ||
or | ||
(B) is subject to a recorded mortgage lien | ||
provided the person who pays the taxes on behalf of the property | ||
owner under the authorization pays the taxes not earlier than | ||
January 31st of the year following the year in which the taxes were | ||
imposed. | ||
(d) A transferee shall record [a tax lien transferred as | ||
provided by this section with] the certified statement attesting to | ||
the transfer of the tax lien as described by Subsection (b) in the | ||
deed records of each county in which the property encumbered by the | ||
lien is located. The transferee is not required to record in the | ||
deed records of a county the sworn document filed under Subsection | ||
(a-1)(1), but the transferee shall retain a copy of that sworn | ||
document in its records. | ||
(f-1) If an obligation secured by a preexisting first lien | ||
on the property is delinquent for at least 90 consecutive days and | ||
the obligation has been referred to a collection specialist, the | ||
mortgage servicer or the holder of the first lien may send a notice | ||
of the delinquency to the transferee of a tax lien. The mortgage | ||
servicer or the first lienholder is entitled, within six months | ||
after the date on which that notice is sent, to obtain a release of | ||
the transferred tax lien by paying the transferee of the tax lien | ||
the amount of the unpaid principal, fees, and interest owed under | ||
the contract between the property owner and the transferee that are | ||
directly attributable to the property taxes paid by the transferee | ||
or the transferee's predecessor in interest on the specific real | ||
property subject to the preexisting first lien. The Finance | ||
Commission of Texas by rule shall prescribe the form and content of | ||
the notice under this subsection. | ||
(h) A mortgage servicer who pays a property tax loan secured | ||
by a tax lien transferred under this section becomes subrogated to | ||
all rights in the lien. A tax lien transferee who pays the amount | ||
owed under an existing property tax loan of another property tax | ||
lender becomes subrogated to all rights in the tax lien if; | ||
(1) the existing property tax lender executes an | ||
assignment of the tax lien; and | ||
(2) the assignment is recorded in the deed records of | ||
each county in which the property encumbered by the lien is located. | ||
SECTION 2. Section 351.0021(a), Finance Code, is amended to | ||
read as follows: | ||
(a) The contract between a property tax lender and a | ||
property owner may require the property owner to pay the following | ||
costs after closing: | ||
(1) a reasonable fee for filing the release of a tax | ||
lien authorized under Section 32.06(b), Tax Code; | ||
(2) a reasonable fee for a payoff statement authorized | ||
under Section 32.06(f-3), Tax Code; | ||
(3) a reasonable fee for providing information | ||
regarding the current balance owed by the property owner authorized | ||
under Section 32.06(g), Tax Code; | ||
(4) reasonable and necessary attorney's fees, | ||
recording fees, and court costs for actions that are legally | ||
required to respond to a suit filed under Chapter 33, Tax Code, [or] | ||
to perform a foreclosure, or in the collection of a delinquent loan, | ||
including fees required to be paid to an official and fees for an | ||
attorney ad litem; | ||
(5) to the extent permitted by the United States | ||
Bankruptcy Code, attorney's fees and court costs for services | ||
performed after the property owner files a voluntary bankruptcy | ||
petition; | ||
(6) a reasonable fee for title examination and | ||
preparation of an abstract of title by an attorney, a title company, | ||
or a property search company authorized to do business in this | ||
state; | ||
(7) a processing fee for insufficient funds, as | ||
authorized under Section 3.506, Business & Commerce Code; | ||
(8) a fee for collateral protection insurance, as | ||
authorized under Chapter 307; | ||
(9) a prepayment penalty, unless the lien transferred | ||
is on residential property owned and used by the property owner for | ||
personal, family, or household purposes; | ||
(10) recording expenses incurred in connection with a | ||
modification necessary to preserve a borrower's ability to avoid a | ||
foreclosure proceeding; and | ||
(11) fees for copies of transaction documents | ||
requested by the property owner. | ||
SECTION 3. Subchapter A, Chapter 351, Finance Code, is | ||
amended by adding Section 351.0024 to read as follows: | ||
Sec. 351.0024. AFFILIATION WITH LEGAL SERVICES PROVIDER. A | ||
property tax lender may not, and an owner, employee, or agent of a | ||
property tax lender may not, have an economic or beneficial | ||
interest in, or receive any form of consideration other than the | ||
provision of legal services directly or indirectly from, an | ||
individual or entity that provides legal services to the property | ||
tax lender relating to loan document production or review, loan | ||
servicing, loan enforcement, loan foreclosure, or the collection of | ||
the loan. | ||
SECTION 4. This Act takes effect immediately if it receives | ||
a vote of two-thirds of all the members elected to each house, as | ||
provided by Section 39, Article III, Texas Constitution. If this | ||
Act does not receive the vote necessary for immediate effect, this | ||
Act takes effect September 1, 2019. |