| 1 | 1 | | 87R7091 SRA-D |
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| 2 | 2 | | By: Noble H.B. No. 3278 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the release of a deed of trust or other contract lien |
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| 8 | 8 | | securing a home loan after payoff by mortgagor. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subchapter B, Chapter 343, Finance Code, is |
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| 11 | 11 | | amended by adding Section 343.108 to read as follows: |
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| 12 | 12 | | Sec. 343.108. RELEASE OF LIEN AFTER PAYOFF BY MORTGAGOR. |
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| 13 | 13 | | (a) In this section: |
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| 14 | 14 | | (1) "Mortgage servicer," "mortgagee," and "mortgagor" |
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| 15 | 15 | | have the meanings assigned by Section 51.0001, Property Code. |
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| 16 | 16 | | (2) "Release of lien" means a release of a deed of |
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| 17 | 17 | | trust or other lien securing a home loan. |
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| 18 | 18 | | (b) Except as provided by Subsection (c), not later than the |
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| 19 | 19 | | 60th day after the date a mortgage servicer or mortgagee, as |
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| 20 | 20 | | applicable, receives the correct payoff amount for a home loan from |
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| 21 | 21 | | a mortgagor, the mortgage servicer or mortgagee shall: |
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| 22 | 22 | | (1) deliver to the mortgagor a release of lien for the |
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| 23 | 23 | | home loan; or |
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| 24 | 24 | | (2) file the release of lien with the appropriate |
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| 25 | 25 | | county clerk's office for recording in the real property records of |
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| 26 | 26 | | the county. |
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| 27 | 27 | | (c) If, on or before the date of the payoff of the home loan, |
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| 28 | 28 | | the mortgagor delivers a written request to the mortgagee or |
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| 29 | 29 | | mortgage servicer for the release of lien to be delivered to the |
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| 30 | 30 | | mortgagor or filed with the county clerk, the mortgagee or mortgage |
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| 31 | 31 | | servicer shall deliver or file the release of lien not later than |
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| 32 | 32 | | the 30th day after the date the mortgagee or mortgage servicer |
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| 33 | 33 | | received the correct payoff amount for the home loan. |
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| 34 | 34 | | SECTION 2. To the extent of a conflict between Section |
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| 35 | 35 | | 343.108, Finance Code, as added by this Act, and a provision of a |
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| 36 | 36 | | home loan agreement entered into before the effective date of this |
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| 37 | 37 | | Act, the provision of the home loan agreement prevails. |
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| 38 | 38 | | SECTION 3. This Act takes effect September 1, 2021. |
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