BILL ANALYSIS

H.B. 219

By: Noble

Pensions, Investments & Financial Services

Committee Report (Unamended)

BACKGROUND AND PURPOSE

In the process of selling property, homeowners who have paid off their mortgage often find that the lien was never released. The sale is subsequently stalled because the mortgage holder was not required to release the lien in a timely manner. Sales are often further delayed as property owners are frequently forced to go to court with proof of the fact that they paid off the mortgage to clear the deed. H.B. 219 seeks to address this issue by requiring mortgage holders to release a lien within 60 days of the mortgage being paid in full and allowing the owner to request in writing that the release of the lien be delivered to them or filed with the county clerk.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 219 amends the Finance Code to require a mortgage servicer or mortgagee, not later than the 60th day after receiving the correct payoff amount for a home loan from a mortgagor, to deliver to the mortgagor a release of lien for the home loan or file the release of lien with the appropriate county clerk's office for recording in the county's real property records. If, on or before the 20th day after the payoff date, the mortgagor delivers a written request to the mortgagee or mortgage servicer for the release of lien to be delivered to the mortgagor or filed with the county clerk, the mortgagee or mortgage servicer must do so not later than the 30th day after the date the request is received.

H.B. 219 establishes that provisions relating to penalties and liabilities regarding loans and financed transactions do not apply to the bill's requirements and, to the extent of a conflict between those requirements and a provision of a home loan agreement entered into before the bill's effective date, the home loan agreement provision prevails.

EFFECTIVE DATE

September 1, 2023.