House
File
578
-
Introduced
HOUSE
FILE
578
BY
COMMITTEE
ON
JUDICIARY
(SUCCESSOR
TO
HSB
80)
A
BILL
FOR
An
Act
relating
to
the
transfer
of
real
estate
and
the
filing
1
of
a
mortgage
release
certificate,
providing
for
a
fee
and
2
making
remedies
applicable,
and
including
effective
date
3
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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(2)
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H.F.
578
Section
1.
Section
16.92,
Code
2013,
is
amended
by
striking
1
the
section
and
inserting
in
lieu
thereof
the
following:
2
16.92
Real
estate
transfer
——
mortgage
release
certificate.
3
1.
Definitions.
As
used
in
this
section,
unless
the
context
4
otherwise
requires:
5
a.
“Applicant”
means
a
person
authorized
to
regularly
lend
6
moneys
to
be
secured
by
a
mortgage
on
real
property
in
this
7
state,
a
licensed
real
estate
broker,
a
licensed
attorney,
a
8
participating
abstractor,
or
a
licensed
closing
agent.
9
b.
“Closing
agent”
means
a
closing
agent
subject
to
the
10
licensing
requirements
of
chapter
535B.
11
c.
“Division”
means
the
title
guaranty
division
in
the
Iowa
12
finance
authority,
the
director
of
the
division,
or
a
designee
13
of
the
director.
14
d.
“Division
board”
means
the
board
of
directors
of
the
15
title
guaranty
division
of
the
Iowa
finance
authority.
16
e.
“Mortgage”
means
a
mortgage
or
mortgage
lien
on
an
17
interest
in
real
property
in
this
state
given
to
secure
a
loan
18
in
an
original
principal
amount
equal
to
or
less
than
the
19
maximum
principal
amount
as
determined
by
the
division
board
20
and
adopted
by
the
Iowa
finance
authority
pursuant
to
chapter
21
17A.
22
f.
“Mortgage
servicer”
means
the
mortgagee
or
a
person
23
other
than
the
mortgagee
to
whom
a
mortgagor
or
the
mortgagor’s
24
successor
in
interest
is
instructed
by
the
mortgagee
to
25
send
payments
on
a
loan
secured
by
the
mortgage.
A
person
26
transmitting
a
payoff
statement
for
a
mortgage
is
a
mortgage
27
servicer
for
purposes
of
such
mortgage
and
this
chapter.
28
g.
“Mortgagee”
means
the
grantee
of
a
mortgage.
If
a
29
mortgage
has
been
assigned
of
record,
the
mortgagee
is
the
last
30
person
to
whom
the
mortgage
is
assigned
of
record.
31
h.
“Mortgagor”
means
the
grantor
of
a
mortgage.
32
i.
“Participating
abstractor”
means
an
abstractor
33
participating
in
the
title
guaranty
program.
34
j.
“Payoff
statement”
means
a
written
statement
furnished
by
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578
the
mortgage
servicer
which
sets
forth
all
of
the
following:
1
(1)
The
unpaid
balance
of
the
loan
secured
by
a
mortgage,
2
including
principal,
interest,
and
any
other
charges
properly
3
due
under
or
secured
by
the
mortgage,
or
the
amount
required
to
4
be
paid
in
order
to
release
or
partially
release
the
mortgage.
5
(2)
The
address
where
payment
is
to
be
sent
or
other
6
specific
instructions
for
making
a
payment.
7
(3)
The
legal
description,
street
address,
or
other
8
description
sufficient
to
identify
the
property
that
will
be
9
released
from
the
mortgage.
10
2.
Application.
The
division
may
execute
and
record
a
11
certificate
of
release
on
behalf
of
the
division
in
the
real
12
property
records
of
each
county
in
which
a
mortgage
is
recorded
13
as
provided
in
this
section
if
all
of
the
following
are
14
satisfied:
15
a.
The
applicant
submits
all
of
the
following
in
writing
to
16
the
division:
17
(1)
A
payoff
statement
or
other
documentation
of
the
amount
18
due,
acceptable
to
the
division,
as
evidence
that
the
mortgage
19
does
not
continue
to
secure
an
unpaid
obligation
due
the
20
mortgagee
or
an
unfunded
commitment
by
the
mortgagor
to
the
21
mortgagee.
22
(2)
Evidence
that
payment
was
made,
including,
if
23
available,
a
statement
as
to
the
date
the
payment
was
received
24
by
the
mortgagee
or
mortgage
servicer,
with
supporting
25
documentation,
as
evidenced
by
one
or
more
of
the
following:
26
(a)
A
bank
check,
certified
check,
escrow
account
check,
27
real
estate
broker
trust
account
check,
attorney
trust
account
28
check,
or
wire
receipt,
that
was
negotiated
by
the
mortgagee
or
29
mortgage
servicer.
30
(b)
Other
documentary
evidence,
acceptable
to
the
division,
31
of
payment
to
the
mortgagee
or
mortgage
servicer.
32
b.
The
applicant
confirms
in
writing
to
the
division
all
of
33
the
following:
34
(1)
More
than
thirty
days
have
elapsed
since
the
date
the
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payment
was
sent.
1
(2)
An
effective
satisfaction
or
release
of
the
mortgage
2
has
not
been
executed
and
recorded
within
thirty
days
after
the
3
date
of
payment.
4
3.
Notice.
5
a.
Prior
to
the
execution
and
filing
of
a
certificate
of
6
release
pursuant
to
this
section,
the
division
shall
notify
the
7
mortgage
servicer
in
writing
of
all
of
the
following:
8
(1)
The
mortgage
has
not
been
released.
9
(2)
The
division’s
intention
to
execute
and
record
10
a
certificate
of
release
pursuant
to
this
section
after
11
expiration
of
the
thirty-day
period
following
the
sending
of
12
the
notice.
13
b.
The
notice
shall
include
instructions
to
notify
the
14
division
in
writing
within
thirty
days
of
the
effective
date
of
15
the
notice
of
any
reason
why
the
certificate
of
release
should
16
not
be
executed
and
recorded.
17
c.
For
purposes
of
this
section,
notice
may
be
served
by
any
18
of
the
following
methods:
19
(1)
By
certified
mail
or
any
commercial
delivery
service,
20
properly
addressed
with
postage
or
cost
of
delivery
provided
21
for.
22
(2)
By
facsimile
transmission
or
electronic
mail
to
an
23
address
provided
by
the
mortgage
servicer,
but
only
if
the
24
mortgage
servicer
agrees
to
receive
notice
in
that
manner.
25
(3)
By
publication
in
a
newspaper
of
general
circulation
26
published
in
each
county
where
the
mortgage
is
recorded
once
27
each
week
for
three
consecutive
weeks
after
receiving
an
28
affidavit
by
the
applicant
that
service
in
accordance
with
the
29
provisions
of
subparagraph
(1)
or
(2)
cannot
be
made
on
the
30
mortgage
servicer.
31
(4)
By
otherwise
causing
the
notice
to
be
received
by
the
32
mortgage
servicer
within
the
time
it
would
have
been
received
33
if
notice
had
been
served
by
certified
mail
or
commercial
34
delivery
service.
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578
d.
For
purposes
of
this
section,
notice
is
effective
under
1
any
of
the
following
circumstances:
2
(1)
The
day
after
the
notice
is
deposited
with
a
commercial
3
delivery
service
for
overnight
delivery.
4
(2)
Three
days
after
the
notice
is
deposited
with
the
United
5
States
postal
service,
or
with
a
commercial
delivery
service
6
for
delivery
other
than
by
overnight
delivery.
7
(3)
The
day
the
notice
is
transmitted,
if
served
pursuant
to
8
paragraph
“c”
,
subparagraph
(2).
9
(4)
On
the
last
day
of
publication,
if
published
pursuant
to
10
paragraph
“c”
,
subparagraph
(3).
11
(5)
The
day
the
notice
is
received,
if
served
by
a
method
12
other
than
as
provided
in
paragraph
“c”
,
subparagraph
(1),
(2),
13
or
(3).
14
e.
If,
prior
to
executing
and
recording
the
certificate
of
15
release,
the
division
receives
a
written
notification
setting
16
forth
a
reason
that
is
satisfactory
to
the
division
as
to
why
17
the
certificate
of
release
should
not
be
executed,
the
division
18
shall
not
execute
and
record
the
certificate
of
release.
19
4.
Contents.
A
certificate
of
release
executed
under
this
20
section
must
contain
substantially
the
information
set
forth
21
as
follows:
22
a.
The
name
of
the
mortgagor.
23
b.
The
name
of
the
original
mortgagee.
24
c.
The
date
of
the
mortgage.
25
d.
The
date
of
recording,
including
the
volume
and
page
or
26
other
applicable
recording
information
in
the
real
property
27
records
of
each
county
where
the
mortgage
is
recorded.
28
e.
A
statement
that
the
release
was
prepared
in
accordance
29
with
this
section.
30
5.
Execution.
A
certificate
of
release
under
this
section
31
shall
be
executed
and
acknowledged
in
the
same
manner
as
32
required
by
law
for
the
execution
of
a
deed.
33
6.
Recording.
The
certificate
of
release
or
partial
34
release
shall
be
recorded
in
each
county
where
the
mortgage
is
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578
recorded.
1
7.
Effect.
2
a.
For
purposes
of
a
release
or
partial
release
of
a
3
mortgage,
a
certificate
of
release
executed
under
this
section
4
that
contains
the
information
and
statements
required
under
5
subsection
4
is
prima
facie
evidence
of
the
facts
contained
in
6
such
release
or
partial
release,
is
entitled
to
be
recorded
7
with
the
county
recorder
where
the
mortgage
is
recorded,
8
operates
as
a
release
or
partial
release
of
the
mortgage
9
described
in
the
certificate
of
release,
and
may
be
relied
upon
10
by
any
person
who
owns
or
subsequently
acquires
an
interest
in
11
the
property
released
from
the
mortgage.
The
county
recorder
12
shall
rely
upon
the
certificate
of
release
to
release
the
13
mortgage.
14
b.
Recording
of
a
wrongful
or
erroneous
certificate
of
15
release
by
the
division
shall
not
relieve
the
mortgagor,
or
the
16
mortgagor’s
successors
or
assigns
on
the
debt,
from
personal
17
liability
on
the
loan
or
on
other
obligations
secured
by
the
18
mortgage.
19
c.
In
addition
to
any
other
remedy
provided
by
law,
if
the
20
division
through
an
act
of
negligence
wrongfully
or
erroneously
21
records
a
certificate
of
release
under
this
section,
the
22
division
is
liable
to
the
mortgagee
and
mortgage
servicer
23
for
actual
damages
sustained
due
to
the
recording
of
the
24
certificate
of
release.
25
d.
Upon
payment
of
a
claim
relating
to
the
recording
of
26
a
certificate
of
release,
the
division
is
subrogated
to
the
27
rights
of
the
claimant
against
all
persons
relating
to
the
28
claim.
29
8.
Fee.
The
division
may
charge
a
fee
for
services
under
30
this
section.
31
Sec.
2.
EFFECTIVE
UPON
ENACTMENT.
This
Act,
being
deemed
of
32
immediate
importance,
takes
effect
upon
enactment.
33
EXPLANATION
34
This
bill
relates
to
the
transfer
of
real
estate
and
the
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578
filing
of
a
mortgage
release
certificate,
providing
for
a
fee,
1
and
making
remedies
applicable.
2
Code
section
16.92
allows
the
title
guaranty
division
3
(division)
of
the
Iowa
finance
authority
to
execute
and
record
4
a
mortgage
release
certificate
in
each
county
(county
recorder)
5
in
which
a
mortgage
is
recorded
if
such
mortgage
has
been
6
paid
off
but
not
released
of
record
or
has
been
incorrectly
7
released.
8
The
bill
reorganizes,
consolidates,
and
amends
certain
9
provisions
in
Code
section
16.92
relating
to
the
application
10
process
for
a
certificate
of
release,
notice
requirements
11
the
division
must
follow
in
notifying
a
mortgage
servicer
of
12
the
division’s
intention
to
execute
and
record
a
certificate
13
of
release
upon
the
division’s
receipt
of
a
mortgage
release
14
application,
and
execution
requirements
relating
to
the
15
certificate
of
release.
The
bill
specifies
that
a
request
for
16
a
mortgage
release
certificate
may
be
made
by
an
applicant,
17
defined
in
the
bill
as
a
person
authorized
to
regularly
lend
18
moneys
to
be
secured
by
a
mortgage
on
real
property
in
this
19
state,
a
licensed
real
estate
broker,
a
licensed
attorney,
a
20
participating
abstractor,
or
a
licensed
closing
agent.
The
21
applicant
is
required
to
submit
certain
evidence
acceptable
to
22
the
division
and
the
applicant
must
confirm
in
writing
that
23
the
mortgage
has
been
paid
off
and
that
no
release
of
the
24
mortgage
has
occurred.
The
bill
provides
that
the
certificate
25
of
release
executed
by
the
division
is
only
required
to
contain
26
certain
basic
information
about
the
mortgage
and
the
execution
27
of
the
certificate
and
also
authorizes
the
division
to
charge
a
28
fee
for
services
relating
to
the
execution
of
the
certificate
29
of
release.
30
Under
Code
section
16.92,
for
purposes
of
a
release
or
31
partial
release
of
a
mortgage,
a
properly
executed
certificate
32
of
release
is
prima
facie
evidence
of
the
facts
contained
in
33
such
release
or
partial
release,
is
entitled
to
be
recorded
34
with
the
county
recorder
where
the
mortgage
is
recorded,
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578
operates
as
a
release
or
partial
release
of
the
mortgage
1
described
in
the
certificate
of
release,
and
may
be
relied
upon
2
by
any
person
who
owns
or
subsequently
acquires
an
interest
in
3
the
property
released
from
the
mortgage.
The
county
recorder
4
is
required
to
rely
upon
the
certificate
of
release
to
release
5
the
mortgage.
In
addition
to
any
other
remedy
provided
by
6
law,
if
the
division
through
an
act
of
negligence
wrongfully
7
or
erroneously
records
a
certificate
of
release,
the
division
8
is
liable
to
the
mortgagee
and
mortgage
servicer
for
actual
9
damages
sustained
due
to
the
recording
of
the
certificate
of
10
release.
11
The
bill
takes
effect
upon
enactment.
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