03-Nov-2005

Public Chapter (PC) 16 extends the maximum duration of an open- end credit agreement made pursuant to an open- end mortgage from 20 years to 30 years from date of original execution.


Public Chapter (PC) 273 enact “Residential Closing Funds Distribution Act of 2005" which applies to transactions involving loans made by mortgage lenders utilizing settlement agents, which loans will be secured by deeds of trust or mortgages on real estate (a) containing not more than four residential dwelling units, regardless of the purpose of such dwellings, (b) vacant lots zoned or designated for use as residential property, or (c) agricultural land. This Act does not apply to transactions involving loans made by mortgage lenders on commercial real estate or industrial real estate. The Act sets forth requirements related to disbursement of loan funds and settlement proceeds, and addresses liability and damages for violations of the Act.