HF 4399 Summary

• Mortgagees and mortgage servicers must issue and submit satisfaction of mortgage documents to the county recorder within 45 days of receiving full payment or performance of the loan secured by the mortgage.

• Mortgagees and mortgage servicers are prohibited from denying the accuracy of an understated payoff amount against any person who reasonably and detrimentally relies upon that understated amount.

• If a corrected payoff statement is issued before payment is made and the mortgagor or authorized agent (including title insurers) receives and has reasonable opportunity to act on it, the corrected statement supersedes the earlier statement.

• Mortgagees that fail to discharge a mortgage within 45 days after receiving full payment or performance become liable to the mortgagor for all actual damages, enforceable through an action for discharge of the mortgage.

• The amendments do not affect a mortgagee's right to recover sums not included in a payoff statement from persons liable for loan payment, nor do they limit other legal claims or defenses available under law.