Bill
HB 831
84(R) - 2015
House Investments & Financial Services
House Investments & Financial Services
Investment & Financial Services
Mortgages & Liens
Vote Recommendation
Neutral
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Neutral
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Neutral
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Neutral
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Neutral
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Neutral
Author(s)
Helen Giddings
Co-Author(s)
Mark Keough
Bill Caption
Relating to disclosure of home mortgage information to a surviving spouse.
Fiscal Notes
A fiscal note dated April 16, 2015 anticipates no fiscal implication to the State or to units of local government.
Bill Analysis
House Bill 831 would amend Chapter 343 of the Finance Code related to home loans to require the disclosure of some mortgage information from a mortgage servicer to the surviving spouse of a deceased mortgagor.
The surviving spouse would have to provide a death certificate or the mortgagor, and affidavit of disinterested witnesses stating that the surviving spouse was married to the mortgagor at the time of the mortgagor's death, and an affidavit signed by the surviving spouse stating that the surviving spouse is currently residing in the underlying mortgaged property as the primary residence.
The request from the surviving spouse would have to include a notice to the mortgage servicer referring to the applicable law.
A mortgage servicer of a home loan would have to answer a surviving spouse's request for information not later than the 30th day after the mortgage servicer receives the request, and provide the information that the mortgagor would have received in a standard monthly statement, including the current balance information, whether the loan is current and any amounts are delinquent, any loan number, and the amount of any escrow deposit for taxes and insurance purposes.
A mortgage servicer that provides the information under this section would not be liable to the estate of the mortgagor or any heir or beneficiary of the mortgagor.
Vote Recommendation Notes
House Bill 831 would create a procedure for surviving spouses of mortgagors, who are not a party to a home mortgage loan, to get information on the mortgage loan from mortgage loan servicers.
This bill would potentially favor property rights of surviving spouses that would not have to go through an often costly judicial action to get this information. On the other hand, because the bill requires that the service mortgagor provide the information, and does not make it an option, it could eventually add a burden to these businesses.
Furthermore, in situations where the surviving spouse is not the heir to the residence, this could be considered by the rightful heirs as an intrusion in their property rights.
Due to the conflict within the property rights principle presented by this bill, we remain neutral.
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