Issue 89.10
Texas Financial Industry and Legislature focused on countering fraud.
Director of Regulatory Affairs
This past week the Texas Bankers Association hosted their advocacy day at the Texas Capitol. The theme of their proactive agenda is fighting fraud through support of SB1281 mail related check fraud, SB1379 increasing penalties on check fraud, and SB1499 increased funding for the Texas Financial Crimes Intelligence Center. Fraud has also increased in the mortgage space. This week we highlight some of the bills attempting to address Recording and Document Integrity issues.
Weekly Highlight
Recording and Document Integrity
Elvis Presley’s former home, Graceland, is maybe the most famous property to undergo attempted fraudulent transfer, but deed fraud is a growing problem. Each of the following bills in one way or another seeks to address the use of fabricated loan documents in property records.
- SB 647 Relating to the filing or recording of documents or instruments conveying or purporting to convey an interest in real or personal property. Authorizes a County Clerk to refuse to file or record a transfer document if the district or county attorney determines there is probable cause to believe the document is fraudulent.
- SB 648 Details all the required documentation if the property instrument is Not filed for recording by an attorney, title agent, title company, or escrow company.
- SB 693 Creates a criminal offense for the use of a notary seal or counterfeit seal on a fraudulent document or instrument.
- SB 1379 Amends various subsections of the Penal Code, increasing the penalties for forgery offenses to a state jail felony. If the writing involved is a deed, mortgage, or similar document, the offense is elevated to a third-degree felony. The penalties would be further increased if the offense was committed against an elderly individual.
- SB 1734 Creates a form to file with the district clerk for a motion of judicial review when an owner has reason to believe that a document purporting to convey title to or an interest in their real property and recorded in the real property records is fraudulent.
- HB 2519 The commissioner of the General Land Office shall prescribe a form to accompany the deed for the notice of real property title transfer. The form must include the full name, address, telephone number, citizenship status, and social security number or taxpayer identification number of both the grantor and of the grantee.
To read the full text of any of these bills you can go to Texas Legislature Online. The designations you see for each bill represent HB – House Bill, SB – Senate Bill and HJR or SJR as House or Senate Joint Resolutions which relate to amendments to the Texas Constitution.
Bills on the Move
SB 4 Bettencourt, Paul – Relating to an increase in the amount of the exemption of residence homesteads from ad valorem taxation by a school district and the protection of school districts against certain losses in local revenue. (Companions HB2611, SJR2) Received in the House Feb 18th.
SB 17 Kolkhorst, Lois – Relating to the purchase of or acquisition of title to real property by certain aliens or foreign entities. Heard March 6th left pending Senate State Affairs.
SB 372 Campbell, Donna – (SB372 was previously filed in 88th Session as SB1568 it passed both chambers but was vetoed by the Governor.) Relating to the persons authorized or appointed to exercise the power of sale under the terms of a contract lien on real property. (Companion HB 576) Voted favorably out of Senate Business and Commerce, recommended for Local/Uncontested Calendar.
SB 583 West, Royce – Relating to lists of public real property suitable for use or to be developed for use as affordable housing by certain municipalities and counties. Hearing set in Senate Local Government for March 10th.
SB 929 Johnson, Nathan – (SB929 was previously filed in 88th Session as HB4301 which passed the house but was not taken up in committee in the Senate, identical bills HB4308 and SB2113 both did not receive a hearing.) Relating to deadlines and time of inception for mechanic’s and materialman’s liens. (Companion HB4301, HB4308, SB2113) Reported favorably as substituted from Senate Business and Commerce on March 4th.
SB 1379 Flores, Pete – Relating to increasing the criminal penalties for forgery. Hearing set in Senate Criminal Justice March 11th.
SJR 2 Bettencourt, Paul – Proposing a constitutional amendment to increase the amount of the exemption of residence homesteads from ad valorem taxation by a school district. (Companions HB2611, SB4) Passed the Senate. Received in the House Feb 18th
New Bills
HB 21 Gates, Gary – Relating to housing finance corporations. (Companion SB867) Referred to House Intergovernmental Affairs
HB 32 Button, Angie Chen – Relating to the eviction from real property of certain persons not entitled to enter, occupy, or remain in possession of the premises. Referred to House Judiciary and Civil Jurisprudence
HB 3223 Leach, Jeff – Relating to statutes of limitation and repose for certain claims involving the construction or repair of an improvement to real property.
HB 3250 Darby, Drew – Relating to the regulation of real estate appraisers and appraisal management companies. (companion SB1735)
HB 3287 Bell, Keith – Relating to construction contract trust funds. (Companion SB1612)
HB 3288 Bell, Keith – Relating to the application of funds under construction contracts. (Companion SB1615)
HB 3289 Bell, Keith – Relating to the payment of funds under construction contracts. (Companion SB1614)
HB 3412 Gamez, Erin – Relating to notice of and assistance in filing an application for a residence homestead exemption from ad valorem taxation provided to a home buyer by a title insurance company or title insurance agent.
HB 3518 Capriglione, Giovanni – Relating to the unauthorized entry, occupancy, sale, rental, lease, advertisement for sale, rental, or lease, or conveyance of real property, including the removal of certain unauthorized occupants of a dwelling.
HB 3685 Leo-Wilson, Terri – Relating to notice of possible eligibility for a residence homestead exemption from ad valorem taxation provided to a home buyer by a title insurance company or title insurance agent in connection with the closing.
HB 3919 Gates, Gary – Relating to size and density requirements for residential lots in certain municipalities. (Companion SB15)
HB 3967 Bernal, Diego – Relating to the purchase of or acquisition of single-family homesteads by certain out-of-state entities.
HB 4031 Ashby, Trent – Relating to the unauthorized occupancy of real property, including the removal of certain unauthorized occupants.
SB 15 Bettencourt, Paul – Relating to size and density requirements for residential lots in certain municipalities; authorizing a fee. (Companion HB3919) Referred to Senate Local Government
SB 929 Johnson, Nathan – Relating to deadlines and time of inception for mechanic’s and materialman’s liens.
SB 1407 Parker, Tan – Relating to the withdrawal of certain deposits placed in escrow in connection with the purchase or reservation of a condominium unit. Referred to Senate Business and Commerce.
SB 1612 Johnson, Nathan – Relating to construction contract trust funds. (Companion HB3287)
SB 1614 Johnson, Nathan – Relating to payment of funds under construction contracts. (Companion HB3289)
SB 1615 Johnson, Nathan – Relating to the application of funds under construction contracts.
SB 1735 Menendez, Jose – Relating to the regulation of real estate appraisers and appraisal management companies.
SB 1995 Hall, Bob – Relating to the unauthorized occupants of a dwelling.
Previously Reported Bills
HB 191 Spiller, David – Relating to the purchase of or acquisition of title to real property by certain foreign entities. (Companion HB1566) Referred to House Homeland, Public Safety, Veterans
HB 243 Spiller, David – (HB243 was previously filed in 88th Session as HB3470 but both that bill and its companion SB1441 were left pending in Committee without a vote.) Relating to the authority of the attorney general to acquire by eminent domain certain real property owned by aliens or foreign entities. Referred to House State Affairs
HB 287 Harris Davila, Caroline – Relating to an annual study by the Texas A&M University Texas Real Estate Research Center of the purchase and sale of single-family homes by certain institutional buyers. Referred to House Licensing and Administrative Procedures
HB 329 Bell, Cecil – (HB329 was previously filed in 88th Session as HB5133 it was left pending in Committee without a vote.) Relating to a requirement that an appraisal review board rely on an appraisal of residential real property prepared by an appraiser and submitted to the board by the property owner. Referred to House Subcommittee on Property Tax Appraisals
HB 360 Vasut, Cody – (HB360 was previously filed in 88th Session as HB523 it was left pending in Committee without a hearing.) Relating to the authority of an appraisal review board to direct changes in the appraisal roll and related appraisal records if a residence homestead is sold for less than the appraised value. Referred to House Subcommittee on Property Tax Appraisals
HB 402 Cain, Briscoe – Relating to the purchase of or acquisition of title to real property by certain aliens or foreign entities. Referred to House Homeland, Public Safety, Veterans
HB 414 Leo-Wilson, Terri – Relating to the unauthorized entry, occupancy, sale, rental, lease, advertisement for sale, rental, or lease, or conveyance of real property, including the removal of certain unauthorized occupants of a dwelling. (Companion HB1076, HB2105, HB2454, HB3003, SB465, SB1333) Referred to House Trade, Workforce, Economic Development
HB 518 Leo-Wilson, Terri – Relating to the ownership of agricultural land by nonresident aliens or foreign entities. Referred to House State Affairs
HB 533 Cortez, Philip – Relating to imposing liens for labor and supplies provided by cleaners. Referred to House Trade, Workforce, Economic Development
HB 576 Shaheen, Matt – (HB576 was previously filed in 88th Session as HB2565 it was left pending in Committee without a vote. Its companion SB1568 passed both chambers but was vetoed by the Governor.) Relating to the persons authorized or appointed to exercise the power of sale under the terms of a contract lien on real property. (Companion SB372) Referred to House Trade, Workforce, Economic Development
HB 733 Bell, Cecil – Relating to verification of citizenship or legal residency for purposes of certain contracts for or concerning the purchase of residential real property located in platted subdivisions. Referred to House Trade, Workforce, Economic Development
HB 851 Schofield, Mike – Relating to the determination and reporting of the number of residence homesteads of certain property owners for which the owner is receiving certain ad valorem tax benefits. Referred to House Ways and Means.
HB 880 Lalani, Suleman – Relating to the reporting of certain information regarding medically necessary debt on a consumer report. (Companion HB2478, SB1000) Referred to House Trade, Workforce, Economic Development.
HB 957 Toth, Steve – (HB957 was previously filed in 88th Session as HB264 passing the House but was not assigned to a committee in the Senate.) Relating to requirements for the physical presence of a borrower for signing certain documents related to a home equity loan. Referred to House Pensions, Investments and Financial Services.
HB 963 Toth, Steve – (HB963 was previously filed in 88th Session as HB295 it was left pending in Committee without a vote. It was also filed in the 87th Session as HB2284) Relating to the limitation on increases in the appraised value of a residence homestead for ad valorem tax purposes. (Enabling HJR74) Referred to House Subcommittee on Property Tax Appraisals.
HB 998 Toth, Steve – (HB998 was previously filed in 88th Session as HB4513 it was left pending in Committee without a vote.) Relating to the authority of an individual, before purchasing real property to be used as the individual’s residence homestead, to request from the chief appraiser. Referred to House Ways and Means.
HB 1043 Bhojani, Salman – Relating to a study by the General Land Office on the establishment and implementation by the General Land Office of a distributed ledger-based title registry pilot program. Referred to House Delivery of Government Efficiency.
HB 1076 Pierson, Katrina – Relating to the unauthorized entry, occupancy, sale, rental, lease, advertisement for sale, rental, or lease, or conveyance of real property, including the removal of certain unauthorized occupants of a dwelling. (Companions HB 414, HB2105, HB 2454, HB3003, SB465, SB1333). Referred to House Trade, Workforce, Economic Development.
HB 1104 Cole, Sheryl – (HB1104 was previously filed in 88th Session as HB1168 it was left pending in Committee without a vote.) Relating to a program to provide housing vouchers to emergency medical services personnel in certain counties. Referred to House Intergovernmental Affairs.
HB 1129 Lopez, Janie – Relating to the eligibility of mental health professionals for the Homes for Texas Heroes home loan program. Referred to House Intergovernmental Affairs.
HB 1139 Oliverson, Tom – Relating to venue in certain actions involving a contract for an improvement to real property. Referred to House Judiciary and Civil Jurisprudence.
HB 1243 Guillen, Ryan – Relating to the authority of spouses who occupy separate properties as their principal residences to each qualify the property in which they reside as their residence homestead for ad valorem tax purposes.
HB 1566 Patterson, Jared – Relating to the purchase of or acquisition of title to real property by certain foreign entities. (Companion HB191)
HB 1623 Louderback, AJ – Relating to the eligibility of certain foreign individuals or entities for a limitation on the taxable value of property for school district maintenance and operations ad valorem tax purposes.
HB 1743 Little, Mitch – Relating to the holding or acquisition of an interest in real property by or on behalf of certain foreign individuals or entities.
HB 1753 Manuel, Christian – Relating to a court order for the exclusive occupancy of the primary residence or other residential property by a spouse during the pendency of a suit for dissolution of a marriage.
HB 1766 Landgraf, Brooks – Relating to a requirement that an appraisal district rely on an appraisal of real property prepared by an appraiser and submitted to the district by the property owner when determining the value of the property.
HB 1849 Hefner, Cole – Relating to the purchase of or acquisition of title to real property by certain aliens or foreign entities; creating a criminal offense. (Companion HB2536)
HB 2016 Bucy, John – Relating to the establishment of the housing Texas fund to be administered by the Texas Department of Housing and Community Affairs.
HB 2025 Tepper, Carl – Relating to the filing for record of a plat, replat, or amended plat or replat of a subdivision of real property or a condominium.
HB 2105 Spiller, David – Relating to the unauthorized entry, occupancy, sale, rental, lease, advertisement for sale, rental, or lease, or conveyance of real property, including the removal of certain unauthorized occupants of a dwelling. (Companions HB414, HB1076, HB2454, HB3274, SB 465)
HB 2131 Dean, Jay – Relating to the unauthorized entry, occupancy, sale, rental, lease, advertisement for sale, rental, or lease, or conveyance of real property, including the removal of certain unauthorized occupants.
HB 2327 Hopper, Andy – Relating to eligibility for loans from the Veterans’ Land Board.
HB 2334 Hinojosa, Gina – (HB2334 was previously filed in 88th Session as HB1057 it was left pending in Committee without a vote.) Relating to restrictions on the purchase of a single-family home by an investment firm.
HB 2389 Kerwin, Helen – Relating to prohibiting the purchase of or acquisition of title to real property by and contracts or other agreements with certain aliens or foreign entities. (Companion SB103)
HB 2454 Toth, Steve – Relating to the unauthorized entry, occupancy, sale, rental, lease, advertisement for sale, rental, or lease, or conveyance of real property, including the removal of certain unauthorized occupants of a dwelling. (Companion HB414, HB1076, HB2105, HB3003, SB 465, SB1333)
HB 2478 Talarico, James – Relating to the reporting of certain information regarding medically necessary debt on a consumer report. (Companions HB880, SB1000)
HB 2483 Curry, Pat – Relating to an account for construction retainage.
HB 2484 Curry, Pat – Relating to an account for construction retainage.
HB 2519 Holt, Janis – Relating to disclosures required to record an instrument conveying real property.
HB 2536 Leach, Jeff – Relating to the purchase of or acquisition of title to real property by certain aliens or foreign entities. (Companion HB1849)
HB 2611 Raymond, Richard – Relating to an increase in the amount of the exemption of residence homesteads from ad valorem taxation by a school district and the protection of school districts against certain losses in local revenue. (Companion SB4, SJR2)
HB 2628 Leo-Wilson, Terri – Relating to the purchase of or acquisition of title to real property by foreign organizations.
HB 2752 Vasut, Cody – Relating to the purchase of or acquisition of title to real property by certain aliens or foreign entities.
HB 2910 Hinojosa, Gina – Relating to single-family homes held by corporate owners for rental purposes. (Companion SB443)
HB 2968 Talarico, James – Relating to single-family homes held by corporate owners for rental purposes.
HB 3003 Leach, Jeff – Relating to the unauthorized entry, occupancy, sale, rental, lease, advertisement for sale, rental, or lease, or conveyance of real property, including the removal of certain unauthorized occupants of a dwelling. (Companions HB414, HB1076, HB2454, SB1333)
HB 3274 Hefner, Cole – Relating to the unauthorized entry, occupancy, sale, rental, lease, advertisement for sale, rental, or lease, or conveyance of real property, including the removal of certain unauthorized occupants of a dwelling. (Companions HB2105, SB465)
HB 3290 Bell, Keith – Relating to the time period for which certain funds payable under a construction contract must be reserved for the benefit of mechanic’s lien claimants. (Companion SB1530)
HJR 40 Swanson, Valoree – (HJR40 was previously filed in 88th Session as HJR124 it was left pending in Committee without a vote.) Proposing a constitutional amendment to remove the requirement that a home equity loan be closed only at the office of the lender, an attorney at law, or a title company. Referred to House Pensions Investments and Financial Services.
HJR 71 Schofield, Mike – Proposing a constitutional amendment providing that a residence homestead is not subject to seizure or sale for delinquent ad valorem taxes. Referred to House Ways and Means.
HJR 75 Toth, Steve – Proposing a constitutional amendment authorizing the legislature to provide for exceptions to the requirement that a home equity loan be closed only at the office of the lender, an attorney at law, or a title company. (Enabling HB957) Referred to House Pensions Investments and Financial Services.
HJR 102 Gervin-Hawkins, Barbara – Proposing a constitutional amendment to authorize the legislature to provide for an exemption from ad valorem taxation of the amount of the market value of residential real property. (Enabling HB1483, HB2039)
HJR 108 Goodwin, Vikki – (HJR108 was previously filed in the 88th Session as HJR188 and SJR77 neither received a hearing) Proposing a constitutional amendment creating the workforce housing fund to facilitate the development of affordable workforce housing.
HJR 147 Bhojani, Salman – Proposing a constitutional amendment to authorize the legislature to provide for a limitation on the maximum appraised value for ad valorem tax purposes of residential real property leased to an elderly person.
SB 74 Zaffirini, Judith – (SB74 was previously filed in the 88th Session as SB2426 it was left pending in Committee without a vote.) Relating to an exemption from residential mortgage loan originator licensing requirements. Referred to Senate Business and Commerce.
SB 103 Hall, Bob – Relating to prohibiting the purchase of or acquisition of title to real property by and contracts or other agreements with certain aliens or foreign entities. (Companion HB2389) Referred to Senate State Affairs.
SB 208 West, Royce – Relating to the establishment of the workforce housing capital investment fund program to fund the development of workforce housing in this state. Referred to Senate Local Government.
SB 234 Johnson, Nathan – Relating to the establishment of the workforce housing program by the Texas Department of Housing and Community Affairs. Referred to Senate Local Government.
SB 244 Flores, Pete – Relating to the limitation on increases in the appraised value of a residence homestead for ad valorem tax purposes. (Enabling SJR15) Referred to Senate Local Government.
SB 307 Kolkhorst, Lois – Relating to the purchase of or acquisition of title to real property by certain aliens or foreign entities. Referred to Senate State Affairs.
SB 443 Hinojosa, Chuy – Relating to single-family homes held by corporate owners for rental purposes. (Companion HB2910) Referred to Senate State Affairs.
SB 465 Campbell, Donna – Relating to the unauthorized entry, occupancy, sale, rental, lease, advertisement for sale, rental, or lease, or conveyance of real property, including the removal of certain unauthorized occupants. (Companion HB414, HB1076, HB2105, HB2454, HB3274) Referred to Senate Local Government.
SB 477 Middleton, Mayes – (SB477 was previously filed in 88th Session as SB1065 it was left pending in Committee without a vote.) Relating to the limitation on increases in the appraised value of a residence homestead for ad valorem tax purposes. Referred to Senate Local Government.
SB 534 Kolkhorst, Lois – Relating to the statutes of limitations for certain suits to recover real property held by another in adverse possession. Referred to Senate State Affairs.
SB 585 West, Royce – Relating to the reporting of certain criminal history record information on a consumer report. Referred to Senate Business and Commerce.
SB 606 West, Royce – Relating to requiring consumer reporting agencies to notify a consumer when inaccurate information in the consumer’s file is corrected. (Identical SB695) Referred to Senate Business and Commerce.
SB 647 West, Royce – Relating to the filing or recording of documents or instruments conveying or purporting to convey an interest in real or personal property. Referred to Senate Business and Commerce.
SB 648 West, Royce – Relating to recording requirements for certain instruments concerning real property. Referred to Senate Business and Commerce.
SB 693 West, Royce – Relating to creating a criminal offense for the use of a notary seal or counterfeit seal on a fraudulent document or instrument. Referred to Senate Criminal Justice.
SB 695 West, Royce – Relating to requiring consumer reporting agencies to notify a consumer when inaccurate information in the consumer’s file is corrected. (Identical SB606) Referred to Senate Business and Commerce.
SB 696 West, Royce – Relating to limitations on the information reported by consumer reporting agencies. Referred to Senate Business and Commerce.
SB 867 Bettencourt, Paul – Relating to housing finance corporations. (Companion HB21) Referred to Senate Local Government.
SB 944 Hughes, Bryan – Relating to judicial deference regarding an interpretation of law by a state agency. Referred to Senate Business and Commerce.
SB 946 Hughes, Bryan – Relating to the prohibition on certain discrimination in the extension of credit to organizations based on social credit or values-based standards. Referred to Senate State Affairs.
SB 949 Parker, Tan – Relating to prohibitions on deceptive and unfair practices related to financial institutions discriminating in the provision of financial services to consumers and other persons. Referred to Senate Business and Commerce.
SB 960 Johnson, Nathan – Relating to the establishment of the workforce housing program by the Texas Department of Housing and Community Affairs. Referred to Senate Local Government.
SB 1000 Blanco, Cesar – Relating to the reporting of certain information regarding medically necessary debt on a consumer report. (Companion HB880, HB2478) Referred to Senate Business and Commerce.
SB 1063 Campbell, Donna – Relating to prohibiting contracts or other agreements with foreign-owned companies in connection with agricultural land. Referred to Senate State Affairs.
SB 1333 Hughes, Bryan – Relating to the unauthorized entry, occupancy, sale, rental, lease, advertisement for sale, rental, or lease, or conveyance of real property. (Companions HB414, HB1076, HB2454, HB3003) Referred to Senate Criminal Justice.
SB 1530 Hinojosa, Chuy – Relating to the time period for which certain funds payable under a construction contract must be reserved for the benefit of mechanic’s lien claimants. (Companion HB3290) Referred to Senate Business and Commerce.
SB 1734 West, Royce – Relating to status of certain documents or instruments purporting to convey title to or an interest in real property.
If you have questions about these specific bills or the Texas legislative process in general, please reach out to Doug Foster or one of our firm’s attorneys or representatives at: https://www.mortgagelaw.com/our-team/