Text: SF00334 Text: SF00336 Text: SF00300 - SF00399 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 SENATE FILE 335 1 2 1 3 AN ACT 1 4 RELATING TO THE TRANSFER OF REAL ESTATE, THE FILING OF A 1 5 RELEASE OF MORTGAGE, AND PROVIDING A REMEDY. 1 6 1 7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 8 1 9 Section 1. NEW SECTION. 16.92 REAL ESTATE TRANSFER 1 10 MORTGAGE RELEASE CERTIFICATE. 1 11 1. DEFINITIONS. As used in this section, unless the 1 12 context otherwise requires: 1 13 a. "Division" means the title guaranty division in the 1 14 Iowa finance authority. 1 15 b. "Mortgage" means a mortgage or mortgage lien on an 1 16 interest in real property in this state given to secure a loan 1 17 in an original principal amount of five hundred thousand 1 18 dollars or less. 1 19 c. "Mortgagee" means the grantee of a mortgage. If a 1 20 mortgage has been assigned of record, the mortgagee is the 1 21 last person to whom the mortgage is assigned of record. 1 22 d. "Mortgage servicer" means the mortgagee or a person 1 23 other than the mortgagee to whom a mortgagor or the 1 24 mortgagor's successor in interest is instructed by the 1 25 mortgagee to send payments on a loan secured by the mortgage. 1 26 A person transmitting a payoff statement for a mortgage is the 1 27 mortgage servicer for purposes of such mortgage. 1 28 e. "Mortgagor" means the grantor of a mortgage. 1 29 f. "Payoff statement" means a written statement furnished 1 30 by the mortgage servicer which sets forth all of the 1 31 following: 1 32 (1) The unpaid balance of the loan secured by a mortgage, 1 33 including principal, interest, and any other charges properly 1 34 due under or secured by the mortgage, or the amount required 1 35 to be paid in order to release or partially release the 2 1 mortgage. 2 2 (2) Interest on a per-day basis for an amount set forth 2 3 pursuant to subparagraph (1). 2 4 (3) The address where payment is to be sent or other 2 5 specific instructions for making a payment. 2 6 (4) If after payment of the unpaid balance of the loan 2 7 secured by the mortgage, the mortgage continues to secure any 2 8 unpaid obligation due the mortgagee or any unfunded commitment 2 9 by the mortgagor to the mortgagee, the legal description of 2 10 the property that will continue to be subject to the mortgage, 2 11 and the legal description of the property that will be 2 12 released from the mortgage. 2 13 g. "Real estate lender or closer" means a person licensed 2 14 to regularly lend moneys to be secured by a mortgage on real 2 15 property in this state, a licensed real estate broker, or a 2 16 licensed attorney. 2 17 2. EXECUTION OF CERTIFICATE OF RELEASE. A duly authorized 2 18 officer or employee of the division may execute and record a 2 19 certificate of release in the real property records of each 2 20 county in which a mortgage is recorded as provided in this 2 21 section if all of the following are satisfied: 2 22 a. The real estate lender or closer has certified in 2 23 writing to the division all of the following: 2 24 (1) That the payoff statement satisfies one of the 2 25 following: 2 26 (a) The statement does not indicate that the mortgage 2 27 continues to secure an unpaid obligation due the mortgagee or 2 28 an unfunded commitment by the mortgagor to the mortgagee. 2 29 (b) The statement contains the legal description of the 2 30 property to be released from the mortgage and the legal 2 31 description of the property that will continue to be subject 2 32 to the mortgage. 2 33 (2) That payment was made in accordance with the payoff 2 34 statement, including a statement as to the date the payment 2 35 was received by the mortgagee or mortgage servicer, as 3 1 evidenced by one or more of the following in the records of 3 2 the real estate lender or closer or its agent: 3 3 (a) A bank check, certified check, escrow account check, 3 4 real estate broker trust account check, or attorney trust 3 5 account check that was negotiated by the mortgagee or mortgage 3 6 servicer. 3 7 (b) Other documentary evidence of payment to the mortgagee 3 8 or mortgage servicer. 3 9 (3) That more than thirty days have elapsed since the date 3 10 the payment was sent. 3 11 b. The division determines that an effective satisfaction 3 12 or release of the mortgage has not been executed and recorded 3 13 within thirty days after the date payment was sent or 3 14 otherwise made in accordance with a payoff statement. 3 15 c. The division, at least thirty days prior to executing 3 16 the certificate of release, sends by certified mail, to the 3 17 last known address of the mortgage servicer, written notice of 3 18 its intention to execute and record a certificate of release 3 19 pursuant to this section after expiration of the thirty-day 3 20 period following the sending of such notice, including 3 21 instructions to notify the division of any reason why the 3 22 certificate of release should not be executed and recorded. 3 23 If, prior to executing and recording the certificate of 3 24 release, the division receives written notification setting 3 25 forth a reason satisfactory to the division why the 3 26 certificate of release should not be executed and recorded by 3 27 the division, the division shall not execute and record the 3 28 certificate of release. 3 29 3. CONTENTS. A certificate of release executed under this 3 30 section must contain substantially the information set forth 3 31 as follows: 3 32 a. The name of the mortgagor; the name of the original 3 33 mortgagee, and, if applicable, the mortgage servicer; the date 3 34 of the mortgage; the date of recording, including the volume 3 35 and page or other applicable recording information in the real 4 1 property records where the mortgage is recorded, and the same 4 2 information for the last recorded assignment of the mortgage. 4 3 b. A statement that the original mortgage principal was in 4 4 an amount of five hundred thousand dollars or less. 4 5 c. A statement that the person executing the certificate 4 6 of release is a duly authorized officer or employee of the 4 7 division. 4 8 d. A statement indicating one of the following: 4 9 (1) That the mortgage servicer provided a payoff statement 4 10 that was used to make payment, and that does not indicate that 4 11 the mortgage continues to secure any unpaid obligation due the 4 12 mortgagee or any unfunded commitment by the mortgagor to the 4 13 mortgagee. 4 14 (2) A statement that the certificate is a partial release 4 15 of the mortgage, the legal descrip
Text: SF00334 Text: SF00336 Text: SF00300 - SF00399 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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