Has anyone read this? Does this mean that if we want a payoff from a servicer, we must submit the prescribed form to the servicer? Or does it mean that if we (the bank) receive the form from a title company, we have eight days to complete and return the form?

Hey Swiggles,

This is what I have found so far. I don't *think* the Finance Commission has published a standard/prescribed form yet.

http://www.blackmannandgraham.com/Articl...57/Default.aspx


Edit: I stand corrected. There is a "form" in the .pdf file.

Yes....so what are we supposed to do?

BM&G

Here is what was proposed:

http://www.sos.state.tx.us/texreg/archiv...RITIES.html#198

Proposed new §155.1, concerning Definitions, provides a definition of "home loans" needed to correctly interpret Chapter 155.

Proposed new §155.2, concerning Payoff Statement Form, sets out the requirements of the prescribed standard form to be used by a mortgage servicer when providing a payoff statement at a title company's request on a home loan. Proposed subsection (a) meets the statutory requirements of Finance Code §343.106(d). Proposed subsection (b) is optional prescribed language that a servicer may use if applicable to a particular loan. Pursuant to House Bill 558, a servicer will not be required to use the form before the 90th day after the Commission adopts the rules.

The proposed new §155.3, concerning Time of Delivery of Payoff Statement, sets forth the number of business days a servicer has to deliver the payoff statement after a payoff request is received.

Here is what was adopted:

http://www.sos.state.tx.us/texreg/sos/adopted/7.BANKING%20AND%20SECURITIES.html#784

I think it would only affect you if you are a title company or if you are servicing mortgages.

We service mortgages that we retain in-house. So if someone requests a payoff, do we have to supply it on that form? Or does the burden fall upon whoever is requesting the payoff to send us the form to complete? And if we need to request a payoff from another bank (say....we're closing but not through a title company), do we have to request the payoff using that form?

...

The way I read it, the request just has to be in writing but the response must be on the prescribed form. "Upon receipt of a valid request...a mortgage servicer shall, provide in writing, ......on the prescribed payoff statement form.. 155.2(b)

That's my impression.

So I had better develop a form..........

Nothing to develop. It has already been developed for you. The Finance Commission adopted it. The rules go into effect March 15th.

http://www.sos.state.tx.us/texreg/sos/tables-and-graphics/201105692-1.pdf

Don't tell your boss you didn't develop it and she'll think your a genius.

Yes, I know....I guess "develop a form" was the wrong terminology. I meant "make the form available in a fillable format." And.....too late.....my boss subscribes to this thread.

Swiggles boss thinks she is a genius anyway...

Swiggles boss (Mack) is going to create the form using advanced technology that swiggles doesn't have....so I'm off the hook anyway.

Under Reg Z 226.36(c)(1)(iii) the delivery time period is 5 business days for payoff requests from consumers or any person acting on behalf of the consumer. I assume a title company would fit the "acting on behalf of the consumer". In this case I am going with 5 business days instead of the 8 business days. Any other thoughts on this?

I would think so. The commentary says "consumer's reprenstative such as attorney, counseling agency or a creditor which requires the statement to complete a refinancing.."The commentary also says the time period may be longer..in some cases. I think 5 would be the most conservative.

Just so you know, they DO listen to comment letters! I feel so validated! (I <3 TX.)

Hello, my name is Always In Training, and I wrote a comment letter!

The links above don't work anymore. Has anyone found a copy of the form that was developed for us?

Any thoughts?

I noticed that too (I don't know what happened), but the link in my first post in this thread does still work, and within it there is a link to the form. It is the proposed rule and the proposed form though. I don't think the form changed, but here is the Texas Register publication of the adopted rules and payoff statement:

Texas Register

payoff statement form

Thanks Z!

I have a question related to the new Payoff Statement Form. We are a mortgage servicer in Oklahoma that services Texas loans. So is this a requirement for loans secured by Texas Real Estate or is this a requirement for mortgage servicers in Texas or both? Sorry, I'm most likely trying to make this harder than it should be.

I don't see how Texas could make mortgage services located in the state use a particular form for loans secured by real estate in another state.

If you are a member of TBA, they have developed a fillable version of the new pay off form.

I've never worked with the TDSML. If they issue a prescribed form do they expect you to use it or do they allow you to customize the forms?

So, in reading the threads, I notice that someone wrote that the effect date is March 15th, but in clicking in to the following link, I noticed that it said effective January 8th.

http://info.sos.state.tx.us/pls/pub/regviewer$ext.RegPage?sl=R&app=1&p_dir=&p_rloc=246885&p_tloc=&p_ploc=&pg=1&p_reg=246885&ti=7&pt=8&ch=155&rl=2&issue=12/30/2011&z_chk=

Can someone tell me when it is effective?

Also, where on TBA website is the fill in form? Thanks

Can someone tell me why Chapter 343.106 of the Texas Finance Code is listed on the Texas Department of Banking's website and not the TDSML's website? Has their website just not been updated or is this section not applicable to savings associations?