Minnesota 2025-2026 Regular Session

Minnesota House Bill HF704 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to financial institutions; modifying provisions governing mortgage payment
3	3	1.3 satisfaction; amending Minnesota Statutes 2024, sections 47.208, subdivision 1,
4	4	1.4 by adding a subdivision; 507.41.
5	5	1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
6	6	1.6 Section 1. Minnesota Statutes 2024, section 47.208, subdivision 1, is amended to read:
7	7	1.7 Subdivision 1.Delivery required.Upon written request, Within 45 days of the date full
8	8	1.8payment or performance of the loan secured by the mortgage or payment is received, as
9	9	1.9provided in a payoff statement as defined in section 507.401, paragraph (h), a mortgagee
10	10	1.10or mortgage servicer, as defined in sections 507.401, paragraph (d), and 507.401, paragraph
11	11	1.11(e), must issue and submit a good and valid satisfaction of mortgage in recordable form
12	12	1.12shall to the county recorder or registrar of titles, as applicable. A good and valid satisfaction
13	13	1.13in recordable form must be delivered to any party paying the full and final balance of a
14	14	1.14mortgage indebtedness that is secured by Minnesota real estate; such delivery shall be in
15	15	1.15hand or by certified mail postmarked within 45 days of the receipt of the written request to
16	16	1.16the holder of any interest of record in said mortgage and within 45 days of the payment of
17	17	1.17all sums due thereon.
18	18	1.18 Sec. 2. Minnesota Statutes 2024, section 47.208, is amended by adding a subdivision to
19	19	1.19read:
20	20	1.20 Subd. 3.Understated payoff statement; reliance.(a) If a mortgagee or mortgage
21	21	1.21servicer determines the payoff amount provided in a payoff statement was understated, the
22	22	1.22mortgagee or mortgage servicer may send a corrected payoff statement.
23	23	1Sec. 2.
24	24	REVISOR RSI/LJ 25-0207201/27/25
25	25	State of Minnesota
26	26	This Document can be made available
27	27	in alternative formats upon request
28	28	HOUSE OF REPRESENTATIVES
29	29	H. F. No. 704
30	30	NINETY-FOURTH SESSION
31	31	Authored by Freiberg02/13/2025
32	32	The bill was read for the first time and referred to the Committee on Commerce Finance and Policy 2.1 (b) If the mortgagor or the mortgagor's authorized agent, which includes a title insurer
33	33	2.2or a title insurer's duly-appointed agent, receives and has reasonable opportunity to act on
34	34	2.3a corrected payoff statement issued under paragraph (a) before making payment, the corrected
35	35	2.4statement supersedes an earlier statement.
36	36	2.5 (c) A mortgagee or mortgage servicer that sends a payoff statement containing an
37	37	2.6understated payoff amount is prohibited from denying the accuracy of the payoff amount
38	38	2.7against any person that reasonably and detrimentally relies upon the understated payoff
39	39	2.8amount.
40	40	2.9 (d) This section does not: (1) affect the right of a mortgagee or mortgage servicer to
41	41	2.10recover any sum that the mortgagee or mortgage servicer did not include in a payoff statement
42	42	2.11from any person liable to pay the loan secured by a mortgage; or (2) limit any claim or
43	43	2.12defense that a person liable to pay the loan secured by the mortgage may have under law
44	44	2.13other than this section.
45	45	2.14 Sec. 3. Minnesota Statutes 2024, section 507.41, is amended to read:
46	46	2.15 507.41 PENALTY FOR FAILURE TO DISCHARGE.
47	47	2.16 When any mortgagee, mortgagee's personal representative, or mortgagee's assignee,
48	48	2.17upon full performance of the conditions of the mortgage, shall fail to discharge the same
49	49	2.18within ten days after being thereto requested and after tender of the mortgagee's reasonable
50	50	2.19charges therefor, that after receiving full payment or performance of the loan secured by
51	51	2.20the mortgage, or payment as provided in a payoff statement, fails to discharge the mortgage
52	52	2.21within 45 days, the mortgagee shall be is liable to the mortgagor, the mortgagor's heirs or
53	53	2.22assigns, for all actual damages thereby occasioned; and a claim for such damages may be
54	54	2.23asserted in an action for discharge of the mortgage. If the defendant be not a resident of the
55	55	2.24state, such action may be maintained upon the expiration of 60 days after the conditions of
56	56	2.25the mortgage have been performed, without such previous request or tender.
57	57	2Sec. 3.
58	58	REVISOR RSI/LJ 25-0207201/27/25