ACT NO. 105
Liability of Mortgagees for Failure to Discharge Mortgages
This act requires mortgage lenders and servicers to provide a payoff figure in five business days if a request for that figure is received in writing and also to provide a mortgage discharge within 30 days after a loan is fully satisfied. The legislation permits an aggrieved party to collect exemplary damages of $25.00 a day up to an aggregate of $5,000 in each situation. In addition, aggrieved parties may also go to
court to recover any losses that they incur when a mortgage was not discharged in a timely manner. This legislation will become effective for all requests for payoff and mortgage discharges received on or after October 1, 2000.
Effective Date: October 1, 2000