bill letting owners request their own payoff statement

The text as introduced · 358 words

89R13682 PRL-F

By: Dorazio
H.B. No. 3903

A BILL TO BE ENTITLED

AN ACT

relating to the persons who are authorized to request a payoff

statement from a property tax lender.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Sections 32.06(a-4) and (a-6), Tax Code, are

amended to read as follows:

(a-4) The Finance Commission of Texas shall:

(1) prescribe the form and content of an appropriate

disclosure statement to be provided to a property owner before the

execution of a tax lien transfer;

(2) adopt rules relating to the reasonableness of

closing costs, fees, and other charges permitted under this

section;

(3) by rule prescribe the form and content of the sworn

document under Subsection (a-1) and the certified statement under

Subsection (b); and

(4) by rule prescribe the form and content of a request

a lender with an existing recorded lien on the property , a property

owner, or a person authorized by the property owner must use to

request a payoff statement and the transferee's response to the

request, including the period within which the transferee must

respond.

(a-6) Notwithstanding Subsection (f-3), a person [ lender ]

described by Subsection (a-4)(4) may request a payoff statement

before the tax loan becomes delinquent. The Finance Commission of

Texas by rule shall require a transferee who receives a request for

a payoff statement to deliver to the requesting lender, property

owner, or person authorized by the property owner the requested

payoff statement on the prescribed form within a period prescribed

by finance commission rule. The prescribed period must allow the

transferee at least seven business days after the date the request

is received to deliver the payoff statement. The consumer credit

commissioner may assess an administrative penalty under Subchapter

F, Chapter 14, Finance Code, against a transferee who wilfully

fails to provide the payoff statement as prescribed by finance

commission rule.

SECTION 2. As soon as practicable after the effective date

of this Act, the Finance Commission of Texas shall adopt rules

necessary to implement the changes in law made by this Act.

SECTION 3. This Act takes effect September 1, 2025.