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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