Text: SF00334                           Text: SF00336
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Senate File 335

Partial Bill History

Bill Text

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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