Bill Text: TX HB3278 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to the release of a deed of trust or other contract lien securing a home loan after payoff by mortgagor.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2021-04-16 - Left pending in committee [HB3278 Detail]
Download: Texas-2021-HB3278-Introduced.html
87R7091 SRA-D | ||
By: Noble | H.B. No. 3278 |
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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 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 | ||
received the correct payoff amount for the home loan. | ||
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, 2021. |