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81st Legislative Session Q&A
Printer-friendly VersionThe 81st Legislative Session is in the history books. Now we work on implementing changes wrought by the Texas Legislature. The White Paper is posted at here. (ou must be a member to view the White Paper, please log in to your profile. For questions please contact Jennifer Kinzler at jkinzler@ibat.org or Kerry Hall at khall@ibat.org.) It provides a quick overview of bills of particular interest to Texas community banks. However, as questions arise from time to time (for example through the recent webinar), we will post FAQs here.
Q&A
Q. I understand from the White Paper that the Texas Residential Construction Commission did not survive sunset. It will not register builders after August 31, 2009. How does this affect residential construction loans?
A. First, the entire Title 16 of the Property Code expires as of September 1, 2009. Therefore, the statutory requirements for notice of builder registration number and consumer rights (notice required last session) terminate on that date.
Q. So, after that date can we make loans where the homeowners are using a “straw contractor” as their third party builder?
A. Yes.
Q. When does the 9 months start for service members’ protection against foreclosure?
A. For guards and reserves, when activation ends; for regular military, when service ends. Consider a court order to shorten the stay for the latter!
Q. Will the Comptroller of Public Accounts develop forms for the changes to unclaimed property?
A. The statute doesn’t require it, but we will follow up and request model forms to notify customers who have property in excess of $250 that their property is about to be delivered to the state! This notice should affect your reports in 2010 since it goes into effect in September (after the August notice requirement). Generally, reporting forms are available on the Comptroller’s web site: www.cpa.state.tx.us .
Q. When will bank officers have to register with CSBS as mortgage loan originators?
A. The later of July 31, 2010 or a date approved by HUD. The rules for registration are still pending.
Q. Did IBAT take a position on SB 666?
A. No. We usually don’t weigh in on trust issues. This bill (which passed) prohibits a trustee from moving a charitable trust out of state unless the trust permits it or the trustee gets consent. (It would affect interstate trust banks primarily.)
A. First, the entire Title 16 of the Property Code expires as of September 1, 2009. Therefore, the statutory requirements for notice of builder registration number and consumer rights (notice required last session) terminate on that date.
Q. So, after that date can we make loans where the homeowners are using a “straw contractor” as their third party builder?
A. Yes.
Q. When does the 9 months start for service members’ protection against foreclosure?
A. For guards and reserves, when activation ends; for regular military, when service ends. Consider a court order to shorten the stay for the latter!
Q. Will the Comptroller of Public Accounts develop forms for the changes to unclaimed property?
A. The statute doesn’t require it, but we will follow up and request model forms to notify customers who have property in excess of $250 that their property is about to be delivered to the state! This notice should affect your reports in 2010 since it goes into effect in September (after the August notice requirement). Generally, reporting forms are available on the Comptroller’s web site: www.cpa.state.tx.us .
Q. When will bank officers have to register with CSBS as mortgage loan originators?
A. The later of July 31, 2010 or a date approved by HUD. The rules for registration are still pending.
Q. Did IBAT take a position on SB 666?
A. No. We usually don’t weigh in on trust issues. This bill (which passed) prohibits a trustee from moving a charitable trust out of state unless the trust permits it or the trustee gets consent. (It would affect interstate trust banks primarily.)