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