In a move greatly benefiting lienholders and loan servicers, Texas Governor
Greg Abbott recently signed H.B. 2067, amending the Texas Civil Practice and
Remedies Code to allow for the unilateral rescission of the acceleration of a
debt. Under Texas law, a lender has four years from the loan’s acceleration to
either file suit or conduct a non-judicial foreclosure sale. Although common law
principles of abandonment existed prior to H.B. 2067, there was no statute
providing specific guidelines for rescission, which created a large burden on
lenders in light of increasing loss mitigation obligations and servicing
transfers. Lenders now have an established path to unilateral rescission.
Section 16.038 of the Texas Civil Practice and Remedies Code codifies a
procedure to unilaterally rescind or waive an acceleration by written notice.
Rescission or waiver of the acceleration is effective if the notice is mailed by
the (1) lienholder, (2) servicer of the debt, or (3) attorney representing the
lienholder on each debtor. The statute does not authorize the attorney of a
servicer to serve the notice of rescission unless that attorney also acts as
counsel for the mortgagee.
Service of the notice must be made by first-class or certified mail to the
debtor’s last known address, and is complete when mailed. As with notices of
acceleration, an affidavit that service was complete is prima facie evidence of
service − proof of receipt is not required for the rescission or waiver to be
Subsection (c) clarifies this is not a lienholder’s exclusive method for
waiving or rescinding an acceleration, leaving agreed rescissions and other
unilateral rescission mechanisms supported by common law as possible
alternatives. H.B. 2067 is effective immediately, but does not allow a
rescission after the four-year limitations period has run.