88R1026 SRA-D
By: Noble, Cook, Capriglione, Leo-Wilson, H.B. No. 219
Frazier, et al.
A BILL TO BE ENTITLED
AN ACT
relating to the release of a deed of trust or other contract lien
securing a home loan after payoff by mortgagor.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 343, Finance Code, is
amended by adding Section 343.108 to read as follows:
Sec. 343.108. RELEASE OF LIEN AFTER PAYOFF BY MORTGAGOR.
(a) In this section:
(1) "Mortgage servicer," "mortgagee," and "mortgagor"
have the meanings assigned by Section 51.0001, Property Code.
(2) "Release of lien" means a release of a deed of
trust or other lien securing a home loan.
(b) Except as provided by Subsection (c), not later than the
60th day after the date a mortgage servicer or mortgagee, as
applicable, receives the correct payoff amount for a home loan from
a mortgagor, the mortgage servicer or mortgagee shall:
(1) deliver to the mortgagor a release of lien for the
home loan; or
(2) file the release of lien with the appropriate
county clerk's office for recording in the real property records of
the county.
(c) If, on or before the 20th day after the date of the
payoff of the home loan, 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 shall deliver or file the release of
lien not later than the 30th day after the date the mortgagee or
mortgage servicer receives the written request from the mortgagor.
(d) Chapter 349 does not apply to this section.
SECTION 2. To the extent of a conflict between Section
343.108, Finance Code, as added by this Act, and a provision of a
home loan agreement entered into before the effective date of this
Act, the provision of the home loan agreement prevails.
SECTION 3. This Act takes effect September 1, 2023.