Texas House passes bill requiring more disclosures from mortgage servicers
The Texas House of Representatives passed a bill that sets up new disclosure requirements for mortgage servicing companies operating in the state of Texas. House Bill 213 requires mortgage servicers to maintain written or electronic records of each written request for information from debtors involving disputes or errors on their residential, first-lien loans. The servicer must also provide general information to borrowers who seek such information, including a copy of the original note, or an affidavit of lost note and a statement that itemizes fees and transactions that goes back two years prior to the date of the request for information. The bill, sponsored by Rep. Eddie Rodriguez (D-Austin), is one of several bills working their way through state legislatures throughout the country, as well as in Congress, in response to last fall's robo-signing issues in which servicers were accused of filing foreclosure documents en masse without verifying their accuracy. The Austin American-Statesman reported Tuesday that an amendment added by Rep. Tracy King (D-Batesville) exempts some nonfederally regulated mortgage servicers from the requirements. King's amendment would exempt servicers who hold the mortgage from the disclosure rules. King said the amendment was for "mom and pop" mortgage holders who might hold only three or four mortgages, according to the Statesman. Sen. Eddie Lucio Jr. (D-Brownsville) filed a Senate measure, Senate Bill 1319, that is similar to Rodriguez's bill. It was considered favorably in the Business and Commerce Committee on Monday, but has not yet been scheduled for a vote. Write to Kerry Curry. Follow her on Twitter @communicatorKLC.