bill changing the rules for property tax loans

The text as introduced · 336 words

By: Menéndez
S.B. No. 3019

A BILL TO BE ENTITLED

AN ACT

relating to authority process of a recorded lien.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 32.06, Tax Code, is amended as follows:

(a-4) The Finance Commission of Texas shall:

(1) prescribe the form and content of an appropriate

disclosure statement to be provided to a property owner before the

execution of a tax lien transfer;

(2) adopt rules relating to the reasonableness of

closing costs, fees, and other charges permitted under this

section;

(3) by rule prescribe the form and content of the sworn

document under Subsection (a-1) and the certified statement under

Subsection (b); and

(4) by rule prescribe the form and content of a request

a lender with an existing recorded lien on the property , consumer,

or third party authorized by the consumer must use to request a

payoff statement and the transferee's response to the request,

including the period within which the transferee must respond.

(a-5) At the time the transferee provides the disclosure

statement required by Subsection (a-4)(1), the transferee must also

describe the type and approximate cost range of each additional

charge or fee that the property owner may incur in connection with

the transfer.

(a-6) Notwithstanding Subsection (f-3), a lender party

described by Subsection (a-4)(4) may request a payoff statement

before the tax loan becomes delinquent. The Finance Commission of

Texas by rule shall require a transferee who receives a request for

a payoff statement to deliver the requested payoff statement on the

prescribed form within a period prescribed by finance commission

rule. The prescribed period must allow the transferee at least

seven business days after the date the request is received to

deliver the payoff statement. The consumer credit commissioner may

assess an administrative penalty under Subchapter F, Chapter 14 ,

Finance Code, against a transferee who wilfully fails to provide

the payoff statement as prescribed by finance commission rule.

SECTION 2. This Act takes effect January 1, 2025.