Texas House Bill HB3903

Texas 2025 - 89th Regular

• Filed: 3/6/25

Caption

Relating to the persons who are authorized to request a payoff statement from a property tax lender.

Impact

The impact of HB 3903 on state laws includes the enhancement of consumer rights when dealing with property tax lenders. By establishing clearer guidelines for requesting payoff statements and ensuring that lenders respond within a specified timeframe, the bill aims to protect property owners from potential difficulties that could arise due to delayed responses from lenders. Consequently, this change could lead to a more transparent lending environment, fostering trust between lenders and property owners.

Summary

House Bill 3903 addresses the procedures and regulations surrounding the request for payoff statements from property tax lenders. Specifically, the bill amends Sections 32.06(a-4) and (a-6) of the Texas Tax Code to clarify the authorization for individuals or entities to request said statements. This update aims to streamline the process by which property owners or their authorized representatives can obtain critical financial information in connection to property tax liens and loans.

Contention

While the bill is primarily focused on administrative efficiency and consumer protection, notable points of contention may arise concerning the responsibilities placed on lenders. There could be concerns from lending institutions regarding the obligations imposed by the requirement to respond within seven business days. Critics may argue that this timeline could be overly burdensome, especially for smaller lenders or those with less capacity to manage high volumes of requests effectively. Additionally, ensuring appropriate penalties for non-compliance might also raise concerns among stakeholders regarding enforcement and fairness.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 32. Tax Liens And Personal Liability
  • Section: New Section

Finance Code

• Chapter 14. Consumer Credit Commissioner
  • Section: New Section