Texas Adopts Release of a Deed of Trust Provision

Texas recently amended the Texas Finance Code to add a provision relating to the release of a lien after payoff by a mortgagor.  The provision requires that no later than the sixtieth day after a mortgage servicer receives the payoff from a mortgagor, the mortgage servicer must either deliver a release of lien to the mortgagor or file the release of lien with the appropriate county clerk’s office.  Alternatively, if on or before the twentieth day after the date of the payoff of the home loan, the mortgagor delivers a written request to the mortgage servicer for the release of the lien, the mortgage servicer must deliver or file the release of lien no later than the thirtieth day after the date the mortgage servicer receives the written request.  This amendment becomes effective on September 1, 2023.