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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 direct 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 343.107 to read as follows: |
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Sec. 343.107. RELEASE OF LIEN AFTER DIRECT PAYOFF BY |
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MORTGAGOR. (a) In this section, "mortgage servicer," "mortgagee," |
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and "mortgagor" have the meanings assigned by Section 51.0001, |
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Property Code. |
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(b) This section does not apply to a payment of a home loan |
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made on behalf of a mortgagor by a title insurance company or an |
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authorized title insurance agent. |
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(c) Not later than the 45th day after the date a mortgage |
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servicer or mortgagee, as applicable, receives full payment of a |
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home loan from a mortgagor in accordance with a payoff statement |
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requested by and furnished directly to the mortgagor, the mortgage |
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servicer or mortgagee shall: |
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(1) deliver to the mortgagor a release of the deed of |
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trust or other contract lien securing the home loan; or |
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(2) file with the appropriate county clerk's office a |
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release of the deed of trust or other contract lien. |
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SECTION 2. To the extent of a conflict between Section |
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343.107, 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, 2021. |