| 1 | 1 | | 87R1032 SRA-D |
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| 2 | 2 | | By: Miles S.B. No. 360 |
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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 direct 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 343.107 to read as follows: |
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| 12 | 12 | | Sec. 343.107. RELEASE OF LIEN AFTER DIRECT PAYOFF BY |
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| 13 | 13 | | MORTGAGOR. (a) In this section, "mortgage servicer," "mortgagee," |
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| 14 | 14 | | and "mortgagor" have the meanings assigned by Section 51.0001, |
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| 15 | 15 | | Property Code. |
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| 16 | 16 | | (b) This section does not apply to a payment of a home loan |
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| 17 | 17 | | made on behalf of a mortgagor by a title insurance company or an |
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| 18 | 18 | | authorized title insurance agent. |
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| 19 | 19 | | (c) Not later than the 45th day after the date a mortgage |
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| 20 | 20 | | servicer or mortgagee, as applicable, receives full payment of a |
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| 21 | 21 | | home loan from a mortgagor in accordance with a payoff statement |
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| 22 | 22 | | requested by and furnished directly to the mortgagor, the mortgage |
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| 23 | 23 | | servicer or mortgagee shall: |
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| 24 | 24 | | (1) deliver to the mortgagor a release of the deed of |
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| 25 | 25 | | trust or other contract lien securing the home loan; or |
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| 26 | 26 | | (2) file with the appropriate county clerk's office a |
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| 27 | 27 | | release of the deed of trust or other contract lien. |
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| 28 | 28 | | SECTION 2. To the extent of a conflict between Section |
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| 29 | 29 | | 343.107, Finance Code, as added by this Act, and a provision of a |
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| 30 | 30 | | home loan agreement entered into before the effective date of this |
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| 31 | 31 | | Act, the provision of the home loan agreement prevails. |
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| 32 | 32 | | SECTION 3. This Act takes effect September 1, 2021. |
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