CS/CS/HB 353 - Mortgage Payoff Letters Summary

• Extends the timeframe for mortgagees or mortgage servicers to send estoppel letters from 10 to 14 days after receiving a written request

• Requires mortgagees or mortgage servicers to notify mortgagors when a request for an estoppel letter is made by a third party and to include a copy of the instrument showing title or lawful authorization

• Prohibits mortgagees or mortgage servicers from qualifying, reserving the right to change, or disclaiming reliance on estoppel letter information, except in foreclosure or bankruptcy proceedings; allows corrected estoppel letters to supersede prior letters if received by 3 p.m. at least 1 business day before payment is issued

• Requires mortgagees or mortgage servicers to accept and promptly apply all payments received in reliance on an estoppel letter and prohibits returning such payments

• Provides multiple methods for sending estoppel letter requests and responses (first-class mail, common carrier, email, facsimile, or electronic systems) with specific receipt timelines and makes the act retroactively applicable to all existing mortgages as of October 1, 2022