Texas passed a bill enacting release of lien requirements with respect to home loans (loans secured by a 1-to 4- family dwelling occupied as the borrower’s principal residence). Under the bill, if a lender or servicer receives the correct payoff amount for a home loan from the borrower, the lender or servicer must either deliver a release of lien for the home loan to the borrower or file a release of lien with the appropriate county clerk’s office for recording. The bill generally requires the lender or servicer to deliver or file the release of lien no later than the 60th day after the date the lender or servicer receives the correct payoff amount. However, if the lender or servicer receives a written request for a release of lien from the borrower on or before the 20th day after the date the home loan is paid off, the lender or servicer must deliver or file the release of lien no later than the 30th day after the date the lender or servicer receives the borrower’s written request. The release of lien requirements do not apply to a reverse mortgage or an open-end account. The bill went into effect September 1, 2023.
Click to view the TX HB 219: https://www.tenaco.com/wp-content/uploads/2023/09/TX-HB-219-06-03-23.pdf
