Florida Senate - 2022 SB 1016 By Senator Burgess 20-00661A-22 20221016__ 1 A bill to be entitled 2 An act relating to mortgage payoff letters; amending 3 s. 701.04, F.S.; revising the timeframe in which 4 mortgagees must send an estoppel letter after 5 receiving a written request; revising requirements for 6 written requests for estoppel letters; revising 7 requirements for estoppel letters; prohibiting 8 mortgagees or servicers of mortgages from taking 9 certain actions relating to reliance on information in 10 estoppel letters; authorizing mortgagees or servicers 11 of mortgages to send corrected estoppel letters that 12 supersede earlier estoppel letters under certain 13 circumstances; prohibiting mortgagees or servicers of 14 mortgages from denying the accuracy of information in 15 estoppel letters if a person reasonably and 16 detrimentally relied upon such information; providing 17 prohibitions and requirements for mortgagees and 18 servicers of mortgages relating to funds received in 19 response to an estoppel letter; requiring mortgagees 20 and servicers of mortgages to execute and record a 21 specified instrument after certain payments are 22 received; specifying that recording a satisfaction of 23 the mortgage does not relieve mortgagors or successors 24 or assigns of mortgagors from personal liability on 25 the loan or obligations secured by the mortgage; 26 entitling prevailing parties to attorney fees and 27 costs; amending s. 701.041, F.S.; revising the 28 definition of the term estoppel letter; making a 29 technical change; providing an effective date. 30 31 Be It Enacted by the Legislature of the State of Florida: 32 33 Section 1.Section 701.04, Florida Statutes, is amended to 34 read: 35 701.04Cancellation of mortgages, liens, and judgments. 36 (1)(a)Within 10 14 days after receipt of the written 37 request of a mortgagor, a record title owner of the property, a 38 fiduciary or trustee lawfully acting on behalf of a record title 39 owner, or any other person lawfully authorized to act on behalf 40 of a mortgagor or record title owner of the property, the 41 mortgagee shall send holder of a mortgage shall deliver or cause 42 the servicer of the mortgage to send deliver to the person 43 making the request at a place designated in the written request 44 an estoppel letter setting forth the unpaid balance of the loan 45 properly due under or secured by the mortgage. If the request is 46 made by a person other than a mortgagor, the request must 47 include a copy of the instrument showing title in the property 48 or lawful authorization 49 (a)If the mortgagor, or any person lawfully authorized to 50 act on behalf of the mortgagor, makes the request, the estoppel 51 letter must include an itemization of the principal, interest, 52 and any other charges properly due under or secured by the 53 mortgage and interest on a per-day basis for the unpaid balance. 54 (b)If a record title owner of the property, or any person 55 lawfully authorized to act on behalf of a mortgagor or record 56 title owner of the property, makes the request: 57 1.The request must include a copy of the instrument 58 showing title in the property or lawful authorization. 59 (b)2.The estoppel letter may include the itemization of 60 information required under paragraph (a), but must, at a 61 minimum, include: 62 1.The total unpaid balance of the loan properly due under 63 or secured by the mortgage, including an itemization of the 64 principal, interest, and other charges comprising the unpaid 65 balance; and 66 2.Interest on a per-day basis for the unpaid balance. 67 (c)The mortgagee or servicer of the mortgage may not 68 qualify, reserve the right to change, or condition or disclaim 69 the reliance of others on the required information provided in 70 the estoppel letter pursuant to paragraph (b) on a per-day 71 basis. 72 (d)3.The mortgagee or servicer of the mortgagee acting in 73 accordance with a request in substantial compliance with this 74 subsection paragraph is expressly discharged from any obligation 75 or liability to any person on account of the release of the 76 requested information, other than the obligation to comply with 77 the terms of the estoppel letter. 78 (e)If the mortgagee or servicer of the mortgage determines 79 that any of the required information provided in the estoppel 80 letter pursuant to paragraph (b) was inaccurate, the mortgagee 81 or servicer of the mortgage may send a corrected estoppel 82 letter. If the mortgagor or record title owner of the property, 83 or any person lawfully authorized to act on behalf of the 84 mortgagor or record title owner, receives and has a reasonable 85 opportunity to act upon a corrected estoppel letter before 86 making payment, the corrected estoppel letter supersedes any 87 earlier estoppel letter. 88 (f)If any of the required information provided in the 89 estoppel letter pursuant to paragraph (b) was inaccurate, the 90 mortgagee or servicer of the mortgage may not deny the accuracy 91 of that information if a person reasonably and detrimentally 92 relied upon such information. 93 (g)A mortgagee or servicer of the mortgage may not refuse 94 to accept or return any funds received in response to an 95 estoppel letter and must promptly apply such funds to the unpaid 96 balance of the loan properly due under or secured by the 97 mortgage. 98 (h)1.A written request for an estoppel letter under 99 paragraph (a) must be sent to the mortgagee or servicer of the 100 mortgage, using address information made available by the 101 mortgagee or servicer of the mortgage for such purpose, by 102 first-class mail, common carrier delivery service, facsimile 103 transmission, or e-mail. The request shall be deemed received by 104 the mortgagee or servicer the day that it is sent by facsimile 105 transmission or e-mail, the fifth day after it is deposited with 106 the U.S. Postal Service for prepaid first-class delivery, or the 107 day of delivery by a common carrier delivery service. 108 2.The mortgagee or servicer of the mortgage shall send the 109 estoppel letter by first-class mail, common carrier delivery 110 service, facsimile transmission, or e-mail, as directed in the 111 written request, provided, however, that the mortgagee or 112 servicer is not required to pay for common carrier delivery 113 service. If the 10th day after receipt of a written request is a 114 Saturday, Sunday, or legal holiday under the laws of this state 115 or the United States, the estoppel letter shall be considered 116 timely if sent on the next business day. 117 (i)(c)A mortgage holder may provide the financial 118 information required under this subsection to a person 119 authorized under this subsection to request the financial 120 information notwithstanding s. 655.059. 121 (2)Whenever the amount of money due on any mortgage has 122 either been fully paid or paid pursuant to an estoppel letter, 123 the mortgagee or servicer of the mortgage must, within 60 days, 124 execute in writing an instrument acknowledging satisfaction of 125 the mortgage and have the instrument acknowledged, or proven, 126 and duly entered in the official records of the proper county 127 and send or cause to be sent the recorded satisfaction to the 128 mortgagor or record title owner of the property. Recording a 129 satisfaction of the mortgage by the mortgagee or servicer of the 130 mortgage does not relieve the mortgagor, or the mortgagors 131 successors or assigns, from any personal liability on the loan 132 or other obligations secured by the mortgage. 133 (3)Whenever the amount of money due on any mortgage, lien, 134 or judgment has been fully paid to the person or party entitled 135 to the payment thereof, the mortgagee, creditor, or assignee, or 136 the attorney of record in the case of a judgment, to whom the 137 payment was made, shall execute in writing an instrument 138 acknowledging satisfaction of the mortgage, lien, or judgment 139 and have the instrument acknowledged, or proven, and duly 140 entered in the official records of the proper county. Within 60 141 days after the date of receipt of the full payment of the 142 mortgage, lien, or judgment, the person required to acknowledge 143 satisfaction of the mortgage, lien, or judgment shall send or 144 cause to be sent the recorded satisfaction to the person who has 145 made the full payment. In the case of a civil action arising out 146 of this section, the prevailing party is entitled to attorney 147 fees and costs. 148 (4)(3)Whenever a writ of execution has been issued, 149 docketed, and indexed with a sheriff and the judgment upon which 150 it was issued has been fully paid, it is the responsibility of 151 the party receiving payment to request, in writing, addressed to 152 the sheriff, return of the writ of execution as fully satisfied. 153 (5)In the case of a civil action arising out of this 154 section, the prevailing party is entitled to attorney fees and 155 costs. 156 Section 2.Paragraph (a) of subsection (1) and subsection 157 (2) of section 701.041, Florida Statutes, are amended to read: 158 701.041Title insurer; mortgage release certificate. 159 (1)DEFINITIONS.For purposes of this section: 160 (a)Estoppel letter means a statement of the amount of: 161 1.The unpaid balance of a loan properly due under or 162 secured by a mortgage, including principal, interest, and any 163 other charges comprising the unpaid balance properly due under 164 or secured by the mortgage. 165 2.Interest on a per-day basis for the unpaid balance. 166 (2)CERTIFICATE OF RELEASE.An officer or duly appointed 167 agent of a title insurer may, on behalf of a mortgagor or a 168 person who acquired from the mortgagor title to all or a part of 169 the property described in a mortgage, execute a certificate of 170 release that complies with the requirements of this section and 171 record the certificate of release in the real property records 172 of each county in which the mortgage is recorded if a 173 satisfaction or release of the mortgage has not been executed 174 and recorded after the date payment in full of the loan secured 175 by the mortgage was made in accordance with an estoppel letter a 176 payoff statement furnished by the mortgagee or the mortgage 177 servicer. 178 Section 3.This act shall take effect October 1, 2022.