| (a) Scope. This section applies to a payoff statement
described by Texas Tax Code, §32.06(a-6) that a property tax
lender provides in response to a request described by §89.801(a)
of this title (relating to Requests for Payoff Statements).
(b) Definitions. In this section, the following terms
have the following definitions:
(1) Balance date--The date used to calculate the total
payoff amount. The balance date must be the same date as the requested
balance date on the request, if possible. If it is not possible for
the property tax lender to provide a balance date that is the same
as the requested balance date, then the balance date must be as close
as possible to the requested balance date.
(2) Business day--A day on which a property tax lender
is open for business.
(3) Requestor--A person who sends a request described
by §89.801(a) of this title.
(4) Total payoff amount--The total amount due under
a property tax loan as of the balance date.
(c) Required elements. A payoff statement under this
section must include:
(1) the date of the payoff statement;
(2) the name and address of the property tax lender;
(3) the name of the borrower;
(4) the address or a legal description of the property
subject to the property tax loan;
(5) one of the following:
(A) the tax account number used by the taxing unit(s);
(B) the property identification number used by the
taxing unit(s); or
(C) the property tax loan number used by the property
tax lender;
(6) the total payoff amount;
(7) the balance date;
(8) a statement substantially similar to the following:
"The total payoff amount is the total amount due under the property
tax loan, as of the balance date stated above.";
(9) an itemization of the total payoff amount, which
must include:
(A) the unpaid principal balance on the property tax
loan;
(B) the accrued interest as of the balance date;
(C) any refundable amount resulting from unearned legitimate
discount points described by §89.601(d) of this title (relating
to Fees for Closing Costs); and
(D) any other fees that are part of the total amount
due under the property tax loan, with a specific description for each
fee;
(10) the due date of the next payment; and
(11) the per diem interest that will accrue after the
balance date, expressed as a dollar amount;
(12) a statement indicating the purpose of the payoff
statement, substantially similar to one of the following:
(A) "We are providing this payoff statement for informational
purposes under Texas Tax Code, §32.06(a-6). This information
does not create a right to pay off the property tax loan.";
(B) "We are providing this payoff statement because
of a statutory right to pay off the property tax loan under Texas
Tax Code, §32.06(f), (f-1) or §32.065(b-1)."; or
(C) "We are providing this payoff statement for another
purpose."; and
(13) the signature of the property tax lender.
(d) Permissible elements. A payoff statement under
this section may include:
(1) additional contact information for the property
tax lender;
(2) the name of one or more co-borrowers on the property
tax loan; and
(3) a statement substantially similar to the following:
"Certain additional charges may be added to the property tax loan
after the date of this statement, to the extent authorized by law."
(e) Calculation of total payoff amount.
(1) For amounts other than the unpaid principal balance
and the accrued interest as of the balance date, the total payoff
amount may only include amounts charged on or before the date of the
payoff statement. This paragraph does not prohibit a property tax
lender from imposing lawful additional charges after the date of the
payoff statement and before the balance date, if the property tax
lender provides the notification and an amended payoff statement described
by subsection (f)(3) or (4) of this section.
(2) If the due date of the next payment is before the
balance date, then the property tax lender must calculate the total
payoff amount as if the borrower will not make the next payment.
(f) Ensuring accuracy and providing updated payoff
statement.
(1) A property tax lender must ensure that all information
is accurate in a payoff statement under this section.
(2) After the date of the payoff statement and before
the balance date, if the property tax lender learns that any of the
information was inaccurate as of the date of the payoff statement,
then the property tax lender must immediately:
(A) notify the requestor of the inaccuracy; and
(B) send an amended, accurate payoff statement to the
requestor in the same manner the payoff statement was sent.
(3) After the date of the payoff statement and before
the balance date, if the property tax lender imposes a one-time lawful
additional charge that it did not reasonably anticipate on the date
of the payoff statement (e.g., a nonsufficient funds fee), then the
property tax lender must immediately send an amended, accurate payoff
statement to the requestor in the same manner the payoff statement
was sent. The amended payoff statement must include the additional
charge in the total payoff amount.
(4) If the property tax lender reasonably anticipates
that it will impose recurring, lawful additional charges after the
date of the payoff statement and before the balance date (e.g., attorney's
fees for services performed during a foreclosure), then the property
tax lender must notify the requestor in writing of the types of recurring
charges that the property tax lender anticipates. The property tax
lender must send this notification either on the same date that it
sends the payoff statement, or immediately after it learns that the
additional charges are likely to be imposed. If the property tax lender
imposes additional charges described by this paragraph, then on the
balance date, it must send an amended, accurate payoff statement to
the requestor in the same manner the payoff statement was sent. The
amended payoff statement's total payoff amount must include all additional
charges as of the balance date.
(5) After the date of the payoff statement and before
the balance date, if any information on the payoff statement changes
other than the information described by this subsection (e.g., the
property tax lender's address), then the property tax lender must
immediately notify the requestor of the change.
(g) Multiple property tax loans on the same property.
If a property tax lender receives a request relating to real property
on which the property tax lender holds more than one property tax
loan, then the property tax lender must provide a separate payoff
statement for each of those property tax loans. Each payoff statement
must comply with this section. In addition, the property tax lender
may provide a combined payoff statement showing the total amount required
to pay off all of the property tax loans on the real property.
(h) Method of delivery. The payoff statement must be
delivered by the method specified in the request, if the request includes
a valid delivery method as provided by §89.801(b)(9) of this
title. Delivery to a mailing address must be made by one or more of
the following methods:
(1) U.S. mail with prepaid first-class postage;
(2) U.S. certified mail with return receipt requested;
(3) a commercial delivery service with tracking abilities;
or
(4) a courier service.
(i) Timing of delivery. The payoff statement must be
delivered within seven business days after the date on which the property
tax lender receives the request.
(j) Verification of delivery. Verifying delivery of
the payoff statement is a best practice for a property tax lender.
A property tax lender may rely on an established system of verifiable
procedures to verify delivery of a payoff statement under this section.
A property tax lender may use any of the following verification methods:
(1) U.S. mail. The property tax lender must allow a
reasonable period of time for delivery by mail. A period of three
calendar days, not including Sundays and federal legal public holidays,
constitutes a rebuttable presumption for sufficient mailing and delivery.
(2) Commercial delivery service with tracking abilities.
For payoff statements delivered by commercial delivery service, a
dated receipt indicating that the payoff statement was successfully
delivered to the mailing address provided in the request will constitute
verification of delivery.
Cont'd... |
