Title FI, Finance Code

Sec. 159.101. DISCLOSURE STATEMENT; OPTION TO RESCIND. (a) A wrap lender must, on or before the seventh day before the wrap mortgage loan agreement is entered into, provide to the wrap borrower a separate written disclosure statement in at least 12-point type that: (1) contains t…

Sec. 159.102. FOREIGN LANGUAGE REQUIREMENT. If the negotiations that precede the execution of the wrap mortgage loan agreement are conducted primarily in a language other than English, the wrap lender shall provide a copy of a written disclosure statement required under Section 1…

Sec. 159.103. FAILURE TO PROVIDE DISCLOSURE: TOLLING OF LIMITATIONS. If a wrap lender fails to provide the disclosure statement as required by Section 159.101 or fails to provide the disclosure statement in the language required by Section 159.102, the limitations period applicab…

Sec. 159.104. FAILURE TO PROVIDE DISCLOSURE BEFORE CLOSING; RIGHT OF RESCISSION. (a) Subject to Subsection (b), if a wrap mortgage loan is closed without the wrap lender providing the disclosure statement required by Section 159.101 or any disclosure required by Section 159.102, …

Sec. 159.105. ENFORCEABILITY OF WRAP LIEN. A lien securing a wrap mortgage loan is void unless the wrap mortgage loan and the conveyance of the residential real estate securing the loan are closed by an attorney or a title company. Added by Acts 2021, 87th Leg., R.S., Ch. 76 (S.B…

Sec. 159.106. BORROWER'S RIGHT OF ACTION. (a) A wrap borrower may bring an action to: (1) obtain declaratory or injunctive relief to enforce this subchapter; (2) recover any actual damages suffered by the wrap borrower as a result of a violation of this subchapter; or (3) obtain …

Sec. 159.107. WAIVER OR AVOIDANCE PROHIBITED. (a) Any purported waiver of a right of a wrap borrower under this subchapter or purported exemption of a person from liability for a violation of this subchapter is void. (b) A person who is a party to a residential real estate transa…

Sec. 159.108. RULEMAKING AUTHORITY. The finance commission may adopt and enforce rules necessary for the intent of or to ensure compliance with this subchapter. Added by Acts 2021, 87th Leg., R.S., Ch. 76 (S.B. 43), Sec. 3, eff. January 1, 2022. SUBCHAPTER D. DUTIES OWED TO WRAP …

Sec. 159.151. MONEY HELD IN TRUST. A person who collects or receives a payment from a wrap borrower under the terms of a wrap mortgage loan holds the money in trust for the benefit of the borrower. Added by Acts 2021, 87th Leg., R.S., Ch. 76 (S.B. 43), Sec. 3, eff. January 1, 202…

Sec. 159.152. FIDUCIARY DUTY. A person who collects or receives a payment from a wrap borrower under the terms of or in connection with a wrap mortgage loan owes a fiduciary duty to the wrap borrower to use the payment to satisfy the obligations of the obligee under each debt des…

Sec. 159.201. APPLICABILITY OF SUBCHAPTER. This subchapter applies only to a wrap mortgage loan for a purchase of residential real estate to be used as the wrap borrower's residence. Added by Acts 2021, 87th Leg., R.S., Ch. 76 (S.B. 43), Sec. 3, eff. January 1, 2022.

Sec. 159.202. WRAP BORROWER'S RIGHT TO DEDUCT. The wrap borrower, without taking judicial action, may deduct from any amount owed to the wrap lender under the terms of the wrap mortgage loan: (1) the amount of any payment made by the wrap borrower to an obligee of a debt describe…

Sec. 159.251. APPLICABILITY OF SUBCHAPTER. This subchapter applies only to a wrap lender who is required to register as a residential mortgage loan servicer under Chapter 158. Added by Acts 2021, 87th Leg., R.S., Ch. 76 (S.B. 43), Sec. 3, eff. January 1, 2022.

Sec. 159.252. INSPECTION; INVESTIGATION. (a) The commissioner may conduct an inspection of a wrap lender registered under Chapter 158 as the commissioner determines necessary to determine whether the wrap lender is complying with that chapter and applicable rules. The inspection …

Sec. 159.253. ISSUANCE AND ENFORCEMENT OF SUBPOENA. (a) During an investigation conducted under this subchapter, the commissioner may issue a subpoena that is addressed to a peace officer of this state or other person authorized by law to serve citation or perfect service. The su…

Sec. 159.301. CEASE AND DESIST ORDER. (a) The commissioner, if the commissioner has reasonable cause to believe that a wrap lender or wrap mortgage loan originator to whom this chapter applies has violated or is about to violate this chapter, may issue without notice and hearing …