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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