Text: HSB00690 Text: HSB00692 Text: HSB00600 - HSB00699 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. NEW SECTION. 655.6 MORTGAGE RELEASE 1 2 CERTIFICATE. 1 3 1. For purposes of this section: 1 4 a. "Mortgage" means a mortgage or mortgage lien on an 1 5 interest in real property in this state given to secure a loan 1 6 in the original principal amount of five hundred thousand 1 7 dollars or less. 1 8 b. "Mortgage servicer" means the last person to whom a 1 9 mortgagor or the mortgagor's successor in interest has been 1 10 instructed by a mortgagee to send payments on a loan secured 1 11 by a mortgage. A person transmitting a payoff statement is 1 12 the mortgage servicer for the mortgage described in the 1 13 payment statement. 1 14 c. "Mortgagee" means either of the following: 1 15 (1) The grantee of a mortgage. 1 16 (2) If a mortgage has been assigned of record, the last 1 17 person to whom the mortgage has been assigned of record. 1 18 d. "Mortgagor" means the grantor of a mortgage. 1 19 e. "Payoff statement" means a statement of the amount of 1 20 all of the following: 1 21 (1) The unpaid balance of a loan secured by a mortgage, 1 22 including principal, interest, and any other charges properly 1 23 due under or secured by the mortgage. 1 24 (2) Interest on a per-day basis for the unpaid balance. 1 25 f. "Record" means to record with the county recorder. 1 26 g. "Real estate lender or closer" means a corporation or 1 27 other business entity licensed to regularly lend money to be 1 28 secured by mortgages on real property in this state, a 1 29 licensed real estate broker, or a licensed attorney. 1 30 2. An officer or duly appointed agent of a real estate 1 31 lender or closer may, on behalf of a mortgagor or a person who 1 32 acquired from the mortgagor title to all or a part of the 1 33 property described in a mortgage, execute a certificate of 1 34 release that complies with the requirements of this section 1 35 and record the certificate of release in the real property 2 1 records of each county in which the mortgage is recorded if 2 2 all of the following apply: 2 3 a. A satisfaction or release of the mortgage has not been 2 4 executed and recorded within thirty days after the date 2 5 payment in full of the loan secured by the mortgage was sent 2 6 in accordance with a payoff statement furnished by the 2 7 mortgagee or the mortgage servicer. 2 8 b. The real estate lender or closer, its officer, or agent 2 9 has sent to the last known address of the mortgagee or the 2 10 mortgage servicer, at least fifteen days prior to executing 2 11 the certificate of release, written notice of its intention to 2 12 execute and record a certificate of release in accordance with 2 13 this section after the expiration of the thirty-day period. 2 14 c. The original principal amount of the mortgage was five 2 15 hundred thousand dollars or less. 2 16 3. A certificate of release executed under this section 2 17 must contain substantially all of the following: 2 18 a. The name of the mortgagor, the name of the original 2 19 mortgagee, and, if applicable, the mortgage servicer, the date 2 20 of the mortgage, the date of recording, and volume and page or 2 21 document number in the real property records where the 2 22 mortgage is recorded, together with similar information for 2 23 the last recorded assignment of the mortgage. 2 24 b. A statement that the mortgage was in the original 2 25 principal amount of five hundred thousand dollars or less. 2 26 c. A statement that the person executing the certificate 2 27 of release is an officer or a duly appointed agent of a real 2 28 estate lender or closer. 2 29 d. A statement that the certificate of release is made on 2 30 behalf of the mortgagor or a person who acquired title from 2 31 the mortgagor to all or a part of the property described in 2 32 the mortgage. 2 33 e. A statement that the mortgagee or mortgage servicer 2 34 provided a payoff statement which was used to make payment in 2 35 full of the unpaid balance of the loan secured by the 3 1 mortgage. 3 2 f. A statement that payment in full of the unpaid balance 3 3 of the loan secured by the mortgage was made in accordance 3 4 with the written or verbal payoff statement, and received by 3 5 the mortgagee or mortgage servicer, as evidenced by one or 3 6 more of the following in the records of the real estate lender 3 7 or closer or its agent: 3 8 (1) A bank check, certified check, escrow account check, 3 9 real estate broker trust account check, or attorney trust 3 10 account check that has been negotiated by the mortgagee or 3 11 mortgage servicer. 3 12 (2) Other documentary evidence of payment to the mortgagee 3 13 or mortgage servicer. 3 14 g. A statement that more than thirty days have elapsed 3 15 since the date payment in full was sent. 3 16 h. A statement that after the expiration of the thirty-day 3 17 period referred to in subsection 2, the real estate lender or 3 18 closer, its officer, or agent sent to the last known address 3 19 of the mortgagee or mortgage servicer, at least fifteen days 3 20 prior to executing the certificate of release, notice in 3 21 writing of its intention to execute and record a certificate 3 22 of release in accordance with this section, with an unexecuted 3 23 copy of the proposed certificate of release attached to the 3 24 written notice. 3 25 i. A statement that the real estate lender or closer, its 3 26 officer, or agent has not received notification in writing of 3 27 any reason why the certificate of release should not be 3 28 executed and recorded after the expiration of the fifteen-day 3 29 notice period referred to in subsection 2. 3 30 4. a. A certificate of release authorized by subsection 2 3 31 must be executed and acknowledged as required by law in the 3 32 case of a deed and may be executed by a duly appointed agent 3 33 of a real estate lender or closer, but such delegation to an 3 34 agent by a real estate lender or closer shall not relieve the 3 35 real estate lender or closer of any liability for damages 4 1 caused by its agent for the wrongful or erroneous execution of 4 2 a certificate of release. 4 3 b. The appointment of agent must be executed, acknowledged 4 4 as required by law in the case of a deed, recorded in the 4 5 office of the county recorder, and must state all of the 4 6 following: 4 7 (1) The real estate lender or closer as the grantor. 4 8 (2) The identity of the person, partnership, or 4 9 corporation authorized to act as agent to execute and record 4 10 certificates of release provided for in this section on behalf 4 11 of the real estate lender or closer. 4 12 (3) That the agent has the full authority to execute and 4 13 record certificates of release provided for in this section on 4 14 behalf of the real estate lender or closer. 4 15 (4) The term of appointment of the agent. 4 16 (5) That the agent has consented to and accepts the terms 4 17 of the appointment. 4 18 c. A single appointment of agent may be recorded by a real 4 19 estate lender or closer in each county recorder's office. A 4 20 separate appointment of agent shall not be necessary for each 4 21 certificate of release. The appointment of agent may be 4 22 rerecorded when necessary to establish authority of the agent, 4 23 but such authority shall continue until a revocation of 4 24 appointment is recorded in the office of the county recorder 4 25 where the appointment of agent was recorded. 4 26 5. For purposes of releasing a mortgage, a certificate of 4 27 release containing the information and statements provided for 4 28 in subsection 3 and executed as provided in this section is 4 29 prima facie evidence of the facts contained in it, is entitled 4 30 to be recorded with the county recorder, and operates as a 4 31 release of the mortgage described in the certificate of 4 32 release. The county recorder shall rely upon the certificate 4 33 of release to release the mortgage. Recording of a wrongful 4 34 or erroneous certificate of release by a real estate lender or 4 35 closer or its agent shall not relieve the mortgagor, or the 5 1 mortgagor's successors or assigns, from any personal liability 5 2 on the loan or other obligations secured by the mortgage. In 5 3 addition to any other remedy provided by law, a real estate 5 4 lender or closer wrongfully or erroneously recording a 5 5 certificate of release under this section shall be liable to 5 6 the mortgagee for actual damage sustained due to the recording 5 7 of the certificate of release. 5 8 6. If a mortgage is recorded in more than one county and a 5 9 certificate of release is recorded in one of them, a certified 5 10 copy of the certificate of release may be recorded in another 5 11 county with the same effect as the original. In all cases, 5 12 the certificate of release shall be entered and indexed as 5 13 satisfactions of mortgage are entered and indexed. 5 14 EXPLANATION 5 15 This bill allows a real estate lender or closer, on behalf 5 16 of a mortgagor or a person who acquired title to property from 5 17 a mortgagor, to execute a certificate of release of mortgage 5 18 in those instances when a mortgage has not been satisfied or 5 19 released within 30 days of payment in full of the loan 5 20 securing the mortgage. The real estate lender or closer is 5 21 required to send a 15-day notice to the mortgagee of the 5 22 intent to execute and record a certificate of release. The 5 23 bill applies to mortgages whose original principal amount was 5 24 $500,000 or less. 5 25 The bill defines "real estate lender or closer" as a 5 26 business entity licensed to regularly lend money to be secured 5 27 by mortgages on real property in this state, a licensed real 5 28 estate broker, or a licensed attorney. 5 29 LSB 3914HC 77 5 30 sc/sc/14
Text: HSB00690 Text: HSB00692 Text: HSB00600 - HSB00699 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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