Sec. 26.151. ESCROW ACCOUNT FOR PROPERTY TAXES. (a) In this section:
(1) "Home loan" has the meaning assigned by Section 343.001, Finance Code.
(2) "Home loan servicer" means a person who:
(A) receives scheduled payments from a borrower under the terms of a home loan, including amounts for escrow accounts; and
(B) makes the payments of principal and interest to the owner of the loan or other third party and makes any other payments with respect to the amounts received from the borrower as may be required under the terms of the servicing loan document or servicing contract.
(3) "Property tax escrow account" means an escrow account maintained by a lender or loan servicer to hold funds prepaid by the borrower on a loan for the payment of property taxes on real property securing the loan as the taxes become due.
(b) To the extent that H.B. 3, 86th Legislature, Regular Session, 2019, has the effect of reducing property taxes in this state, a lender or home loan servicer of a home loan that maintains a property tax escrow account must take into account the effect of that legislation in establishing the borrower's annual property tax payments to be held in that account and immediately adjust the borrower's monthly payments accordingly.
(c) This section expires September 1, 2023.
Added by Acts 2019, 86th Leg., R.S., Ch. 943 (H.B. 3), Sec. 1.064, eff. September 1, 2019.
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