HB 382 - Alabama Residential Mortgage Satisfaction Act

• Creates process for mortgagors to request payoff statements from secured creditors, who must respond within 14 days of proper notification containing borrower name, account information, and mailing address.

• Requires secured creditors to submit mortgage satisfaction for recording within 30 days after receiving full payment and performance of the obligation.

• Imposes $500 penalty on secured creditors who fail to record satisfaction within 30 days if mortgagors make a written request and creditor fails to comply within 21 days.

• Establishes satisfaction agent system using title insurance companies or licensed attorneys to file affidavits of satisfaction if creditors fail to record within required timeframes, with specific notification and waiting period requirements.

• Amends existing mortgage satisfaction law (§35-10-26 and §35-10-30) to conform with the new act; effective March 1, 2013.