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
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  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.
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