The wrap borrower, without taking judicial action, may deduct from any amount owed to the wrap lender under the terms of the wrap mortgage loan:
(1) the amount of any payment made by the wrap borrower to an obligee of a debt described by Section 159.001(7)(A)(ii) to cure a default by the wrap lender caused by the lender's failure to make payments for which the lender is responsible under the terms of the wrap mortgage loan; or
(2) any other amount for which the wrap lender is liable to the wrap borrower under the terms of the wrap mortgage loan.
Official text of the Texas Finance Code as published by the Texas Legislative Council.