# New Law in Texas regarding Wrap Around Mortgages
**URL:** https://forum.notarycafe.com/t/new-law-in-texas-regarding-wrap-around-mortgages/27387
**Category:** Law Related
**Created:** [October 19, 2021, 2:58pm UTC](https://forum.notarycafe.com/t/new-law-in-texas-regarding-wrap-around-mortgages/27387 "2021-10-19T14:58:40Z")
**Posts on this page:** 4
**Page:** 1
### Author:  [@RiverpointeTax](https://forum.notarycafe.com/u/RiverpointeTax)
#### Post date: [October 19, 2021, 2:58pm UTC](https://forum.notarycafe.com/t/new-law-in-texas-regarding-wrap-around-mortgages/27387/1 "2021-10-19T14:58:41Z")
My Texas Colleagues be aware that starting January 1st, 2022 Wrap Around mortgages **can only be close by an Attorney or Title Officer.**
A wrap around mortgage is a type of loan that falls under seller financing while the seller still has a mortgage with another lender. In other words the buyers owner financed loan is wrapped around the seller’s existing mortgage. The Statute was changed to provide buyer safe guards of owner financed mortgages.
Texas Finance Code Section Sec. 159.105. ENFORCEABILITY OF WRAP LIEN. A lien securing a wrap mortgage loan is void unless the wrap mortgage loan and the conveyance of the residential real estate securing the loan are closed by an attorney or a title company.
Sources: Texas Finance Code and National Notary Association Legal alert for October 2021.
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### Author:  [@natasha](https://forum.notarycafe.com/u/natasha)
#### Post date: [July 11, 2024, 6:49pm UTC](https://forum.notarycafe.com/t/new-law-in-texas-regarding-wrap-around-mortgages/27387/2 "2024-07-11T18:49:01Z")
I know this is an old conversation, but I was wondering if any Texas notaries have come across these types of signings since this new law was enacted. And if you have, what has your experience been like?
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### Author:  [@RiverpointeTax](https://forum.notarycafe.com/u/RiverpointeTax)
#### Post date: [July 11, 2024, 11:18pm UTC](https://forum.notarycafe.com/t/new-law-in-texas-regarding-wrap-around-mortgages/27387/3 "2024-07-11T23:18:54Z")
Mobile Notaries won’t encounter these closings unless they’re working directly for a Lawyer or Title company.
A “loan is void unless the wrap mortgage loan and the conveyance of the residential real estate securing the loan are closed by an attorney or a title company.”
What this change did was remove the mobile notary for these types of closings.
On a side note, I hope Beryl left you and your unharmed.
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### Author:  [@natasha](https://forum.notarycafe.com/u/natasha)
#### Post date: [July 11, 2024, 11:31pm UTC](https://forum.notarycafe.com/t/new-law-in-texas-regarding-wrap-around-mortgages/27387/4 "2024-07-11T23:31:55Z")
@RiverpointeTax Thank you so much for this helpful information and for your concern! 🙏🏾😊 We are still without power in our neighborhood, but my family and I are safe and healthy, so I can’t complain. I hope you and your family were unharmed by Beryl and keeping cool.