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A BILL TO BE ENTITLED
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AN ACT
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relating to the release of a deed of trust or other contract lien |
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securing a home loan after payoff by mortgagor. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 343, Finance Code, is |
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amended by adding Section 343.108 to read as follows: |
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Sec. 343.108. RELEASE OF LIEN AFTER PAYOFF BY MORTGAGOR. |
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(a) In this section: |
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(1) "Mortgage servicer," "mortgagee," and "mortgagor" |
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have the meanings assigned by Section 51.0001, Property Code. |
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(2) "Release of lien" means a release of a deed of |
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trust or other lien securing a home loan. |
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(b) Except as provided by Subsection (c), not later than the |
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60th day after the date a mortgage servicer or mortgagee, as |
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applicable, receives the correct payoff amount for a home loan from |
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a mortgagor, the mortgage servicer or mortgagee shall: |
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(1) deliver to the mortgagor a release of lien for the |
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home loan; or |
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(2) file the release of lien with the appropriate |
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county clerk's office for recording in the real property records of |
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the county. |
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(c) If, on or before the 20th day after the date of the |
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payoff of the home loan, the mortgagor delivers a written request to |
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the mortgagee or mortgage servicer for the release of lien to be |
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delivered to the mortgagor or filed with the county clerk, the |
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mortgagee or mortgage servicer shall deliver or file the release of |
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lien not later than the 30th day after the date the mortgagee or |
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mortgage servicer receives the written request from the mortgagor. |
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(d) Chapter 349 does not apply to this section. |
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(e) A mortgage servicer is required to comply with this |
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section only if the mortgage servicer has the authority to deliver |
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or file a release of lien for the home loan. |
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SECTION 2. To the extent of a conflict between Section |
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343.108, Finance Code, as added by this Act, and a provision of a |
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home loan agreement entered into before the effective date of this |
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Act, the provision of the home loan agreement prevails. |
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SECTION 3. This Act takes effect September 1, 2023. |