By: Zaffirini S.B. No. 1431               A BILL TO BE ENTITLED   AN ACT   relating to escrow payments for a loan secured by a new dwelling.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter B, Chapter 343, Finance Code, is   amended by adding Section 343.107 to read as follows:          Sec. 343.107.  DETERMINATION OF INITIAL AMOUNT OF ESCROW   PAYMENTS ON LOAN SECURED BY NEW DWELLING.  (a)  In this section,   "mortgage servicer" has the meaning assigned by Section 51.0001,   Property Code.          (b)  This section applies only to a home loan secured by real   property on which a dwelling has been constructed that is not   included on the appraisal roll of the appraisal district that   appraises the property for ad valorem tax purposes because the   dwelling is a new improvement.          (c)  Subject to 12 C.F.R. Section 1024.17, if an escrow   account is created for the home loan, the lender or mortgage   servicer, as applicable, shall make a good-faith effort to ensure   that the amount the borrower is initially required to pay into the   escrow account for purposes of payment of the ad valorem taxes   imposed on the property is reasonably likely to be sufficient to pay   the taxes based on all available evidence, including the probable   effect of the newly constructed dwelling on the appraised value,   and the market value of comparable improved residential properties   in the market area as determined by the appraisal districts that   appraise those properties for ad valorem tax purposes as   applicable.          (d)  A lender or mortgage servicer's failure to ensure that   the amount paid into escrow is sufficient to pay the taxes as   described by Subsection (c) does not affect the lender or mortgage   servicer's security interest in the real property that secures the   home loan.          (e)  This section does not create a cause of action.          SECTION 2.  The change in law made by this Act applies to a   loan closed on or after the effective date of this Act.  A loan   closed before the effective date of this Act is governed by the law   in effect when the loan was closed, and the former law is continued   in effect for that purpose.          SECTION 3.  This Act takes effect September 1, 2017.