In today’s issue of the Texas Register (Volume 36, Number 44) the Finance Commission of Texas (the Commission) proposes new Administrative Rules under 7 TAC Chapter 155, §§155.1 – 155.3, concerning Payoff Statements to implement the new statutory provisions of Section 343.106 of the Texas Finance Code. House Bill 558 enacted by the 2011 Texas legislative session added Section 343.106 to the Finance Code (see our August 15, 2011, legislative update memo on House Bill 558). Section 343.106 requires the Commission to adopt rules governing requests by title insurance companies for payoff information from mortgage servicers related to home loans and the provision of that information, including rules prescribing a standard payoff statement form that must be used by mortgage servicers to provide those payoff statements. Proposed Chapter 155 of the Texas Administrative Code contains rules that fulfill this statutory requirement (see text of proposed Chapter 155 and the payoff statement form set out below). When reading these proposed rules, please note that they only apply to a payoff request for a loan secured by the borrower’s principal residence. Comments on these proposed new rules may be submitted in writing to Caroline C. Jones, General Counsel, Texas Department of Savings and Mortgage Lending, 2601 North Lamar, Suite 201, Austin, Texas 78705 or by email to smlinfo@sml.texas.gov within 30 days of publication in the Texas Register.
