Mortgage Release Act: Acceptance of Payment Forms in Connecticut, Study notes of Law

Download Mortgage Release Act: Acceptance of Payment Forms in Connecticut and more Study notes Law in PDF only on Docsity! House of Representatives sHB5215 / File No. 38 1 General Assembly File No. 38 February Session, 2022 Substitute House Bill No. 5215 House of Representatives, March 21, 2022 The Committee on Banking reported through REP. DOUCETTE of the 13th Dist., Chairperson of the Committee on the part of the House, that the substitute bill ought to pass. AN ACT CONCERNING MORTGAGE RELEASES AND REQUIRING MORTGAGEES TO ACCEPT CERTAIN FORMS OF PAYMENT. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Subsection (a) of section 49-8 of the general statutes is 1 repealed and the following is substituted in lieu thereof (Effective October 2 1, 2022): 3 (a) (1) The mortgagee or a person authorized by law to release the 4 mortgage shall execute and deliver or cause to be delivered to the town 5 clerk of the town in which the real estate is situated or, if so requested 6 in writing by the mortgagor or a legal representative of the mortgagor, 7 to the mortgagor or the legal representative of the mortgagor, a release 8 to the extent of the satisfaction tendered before or against receipt of the 9 release: [(1)] (A) Upon the satisfaction of the mortgage; [(2)] (B) upon a 10 bona fide offer to satisfy the mortgage in accordance with the terms of 11 the mortgage deed upon the execution of a release; [(3)] (C) when the 12 parties in interest have agreed in writing to a partial release of the 13 mortgage where that part of the property securing the partially satisfied 14 sHB5215 File No. 38 sHB5215 / File No. 38 2 mortgage is sufficiently definite and certain; or [(4)] (D) when the 15 mortgagor has made a bona fide offer in accordance with the terms of 16 the mortgage deed for such partial satisfaction on the execution of such 17 partial release. 18 (2) If a release has not been delivered to the mortgagor or legal 19 representative of the mortgagor in accordance with subdivision (1) of 20 this subsection, the mortgagee or such person shall deliver a copy of 21 such release to the mortgagor at or about the same time such release is 22 delivered to the town clerk. 23 Sec. 2. Section 49-8a of the general statutes is repealed and the 24 following is substituted in lieu thereof (Effective October 1, 2022): 25 (a) For the purposes of this section and section 49-10a: 26 (1) "Mortgage loan" means a loan secured by a mortgage on one, two, 27 three or four family residential real property located in this state, 28 including, but not limited to, a residential unit in any common interest 29 community, as defined in section 47-202. 30 (2) "Person" means an individual, corporation, limited liability 31 company, business trust, estate, trust, partnership, association, joint 32 venture, government, governmental subdivision or agency, or other 33 legal or commercial entity. 34 (3) "Mortgagor" means the grantor of a mortgage. 35 (4) "Mortgagee" means the grantee of a mortgage; provided, if the 36 mortgage has been assigned of record, "mortgagee" means the last 37 person to whom the mortgage has been assigned of record; and 38 provided further, if the mortgage has been serviced by a mortgage 39 servicer, "mortgagee" means the mortgage servicer. 40 (5) "Mortgage servicer" means the last person to whom the mortgagor 41 has been instructed by the mortgagee to send payments of the mortgage 42 loan. The person who has transmitted a payoff statement shall be 43 deemed to be the mortgage servicer with respect to the mortgage loan 44 sHB5215 File No. 38 sHB5215 / File No. 38 5 mortgage. 108 (e) The affiant shall attach to the affidavit (1) photostatic copies of the 109 documentary evidence that payment has been received by the 110 mortgagee, including the mortgagee's endorsement of any bank check, 111 certified check, attorney's clients' funds account check, title insurance 112 company check, or confirmation of a wire transfer, and (2) (A) a 113 photostatic copy of the payoff statement, or (B) in the absence of a payoff 114 statement requested pursuant to section 49-10a, a copy of a statement 115 from the mortgagee that is in the possession of the mortgagor indicating 116 the outstanding balance due on the mortgage loan as of a date certain 117 and a statement setting out the mortgagor's basis for the estimate of the 118 amount due, and shall certify on each that it is a true copy of the original 119 document. 120 (f) Such affidavit, when recorded, shall constitute a release of the lien 121 of such mortgage or the property described therein. 122 (g) The town clerk shall index the affidavit in the name of the original 123 mortgagee and the last assignee of the mortgage appearing of record as 124 the grantors, and in the name of the mortgagors and the current record 125 owner of the property as grantees. 126 (h) Any person who causes an affidavit to be recorded in the land 127 records of any town in accordance with this section having actual 128 knowledge that the information and statements therein contained are 129 false shall be guilty of a class D felony. 130 (i) A mortgagee shall accept as payment tendered for satisfaction or 131 partial satisfaction of a mortgage a bank check, certified check, 132 attorney's clients' funds account check, title insurance company check, 133 wire transfer or any other form of payment authorized under federal 134 law. 135 This act shall take effect as follows and shall amend the following sections: Section 1 October 1, 2022 49-8(a) sHB5215 File No. 38 sHB5215 / File No. 38 6 Sec. 2 October 1, 2022 49-8a BA Joint Favorable Subst. sHB5215 File No. 38 sHB5215 / File No. 38 7 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department. OFA Fiscal Note State Impact: None Municipal Impact: None Explanation The bill, which adds certain requirements for mortgagees, does not result in a fiscal impact to the state or municipalities. The Out Years State Impact: None Municipal Impact: None