SB347 - Alabama Residential Mortgage Satisfaction Act

• Applies only to residential mortgages on one to four dwelling units used primarily for personal, family, or household purposes in Alabama and does not apply to commercial property or fixture-only security interests.

• Requires secured creditors to provide a payoff statement within 14 days of receiving proper notice, with payoff statements specifying unpaid principal, interest, fees, and per diem interest amounts for calculating payoffs on future dates.

• Mandates secured creditors submit mortgage satisfaction documents for recording within 30 days after receiving full payment and performance of the secured obligation, with a $500 penalty if they fail to record within 21 days of a written request from mortgagors.

• Establishes a satisfaction agent remedy allowing title insurance companies or licensed attorneys to execute and record affidavits of satisfaction if the secured creditor fails to do so within 30 days of receiving notice of intent, provided the secured creditor does not dispute the claim.

• Effective March 1, 2013, and amends Code of Alabama Sections 35-10-26 and 35-10-30 to exclude residential mortgages from prior satisfaction penalty provisions.