The Bulldogs fell to 15-7 overall and 7-4 in the American Southwest Conference West Division. Texas Lutheran is now two games behind ASC West leader Sul Ross State, a game behind Mary Hardin-Baylor and tied with McMurry.
The top two teams in the ASC West and the top two teams in ASC East advance to the ASC Championship Tournament. The winner of the tournament receives the automatic bid to the NCAA Division III Men's Basketball Tournament.
Howard Payne remained in the playoff picture with the victory and improved to 14-8 overall and 6-5 in the ASC West, a game behind Texas Lutheran.
Benny West led Howard Payne with 20 points, nine rebounds and eight steals.
Jerrod Carpenter and Nik Summers each scored 22 for the Bulldogs. Carpenter, a redshirt freshman, was 10-of-11 from the field. He also grabbed a game-high 10 rebounds.
Texas Lutheran's Tommy Stolhandske played his first game since breaking his right hand Jan. 26 against Schreiner. Stolhandske, NCAA Division III's second-ranked rebounder, had surgery on the hand and was fitted with a splint. He played 23 minutes Thursday, scored six points and grabbed seven rebounds.
The Bulldogs shot 52 percent from the field and 58.6 percent in the second half but could not overcome 26 turnovers. Howard Payne scored 28 points off the turnovers.
Texas Lutheran now faces ASC West leader Sul Ross State on Saturday. Game time in Alpine is set for 3 p.m.
The Bulldogs conclude the regular season with home games Feb. 19 (vs. Concordia-Austin) and Feb. 21 (vs. Mary Hardin-Baylor).