This legislative update summarizes eight bills effective September 1, 2011, that we consider are of interest to our clients. The legislative updates that follow this update will summarize the following bills that we consider are of interest to our clients: (i) bills effective September 1, 2011, that are not addressed in this legislative update, (ii) bills that we consider important enough to be the subject of a separate legislative update, and (iii) bills and constitutional amendments effective after September 1, 2011. • REQUIRING PAYOFF STATEMENTS FOR HOME LOANS (HB 558) House Bill 558 amends Chapter 343, Finance Code, by adding Section 343.106, which requires a payoff statement from a mortgage servicer, outlines required elements for the payoff statement, and details provisions for correcting errors in a payoff statement. The terms “mortgage servicer,” “mortgagee,” and “mortgagor” used in Section 343.106 have the same meanings as defined in Section 51.0001, Property Code – see Our Comments below for definitions. Our Comments: Section 51.0001, Property Code, provides the following definitions: 1. “Mortgage servicer” is the last person to whom a mortgagor has been instructed by the current mortgagee to send payments for the debt secured by a security instrument. A mortgagee may be the mortgage servicer. 2. “Mortgagee” is (i) the grantee, beneficiary, owner, or holder of a security instrument; (ii) a book entry system; or (iii) the last person to whom the security interest has been assigned of record. 3. “Mortgagor” is the grantor of a security instrument.
