Oklahoma 2022 Regular Session

Oklahoma House Bill HB2397 Compare Versions

Version 1 (Old)

Version 2 (New)

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	30	+	March 30, 2021
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3	34		BILL NO. 2397 By: Russ of the House
4	35
5	36		and
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7	38		Howard of the Senate
8		-
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13	43		An Act relating to mortgage releases and liens on
14	44		real property; amending Section 1, Chapter 222,
15	45		O.S.L. 2015 (36 O.S. Su pp. 2020, Section 5008), which
16	46		relates to release of mortgage affidavits by title
17	47		insurance officer or agent ; removing the requirement
18	48		that a written approval of the title insurance
19	49		company shall appear on the affidavit if executed by
20	50		an agent; and providing an effective date.
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24		-	SUBJECT: Mortgage releases and liens on real property
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26	55		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
27		-
28	56		SECTION 1. AMENDATORY Section 1, Chapter 222, O.S.L.
29	57		2015 (36 O.S. Supp. 2020, Section 5008), is amended to read as
30	58		follows:
31		-
32	59		Section 5008. A. As used in this section:
33		-
34	60		1. "Mortgage" means a contract lien on an interest in real
35	61		property;
	62	+	2. "Mortgagee" means:
	63	+	a. the grantee of a mortgage,
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37		-	2. "Mortgagee" means:
38		-
39		-	a. the grantee of a mortgage,
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41	91		b. if a mortgage has been assigned of record, the last
42	92		person or entity to whom the mortgage or judgment lien
43	93		has been assigned of record, or
44		-
45	94		c. if a mortgage is serviced by a mortgage servicer, the
46		-	mortgage servicer; ENR. H. B. NO. 2397 Page 2
47		-
	95	+	mortgage servicer;
48	96		3. "Mortgage servicer" means the last person or entity to whom
49	97		a mortgagor has been instructed by a mortgagee to send payments for
50	98		the loan secured by a mortgage or judgment lien. A person or entity
51	99		transmitting a payoff statement is considered the mortgage servicer
52	100		for the mortgage or judgment lien described in the payoff statement;
53		-
54	101		4. "Mortgagor" means the grantor of a mortgage;
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56	102		5. "Payoff statement" means a statement of the amount of:
57		-
58	103		a. the unpaid balance of a loan secured by a mortgage or
59	104		judgment lien, including principal, interest, and
60	105		other charges properly assessed under the loan
61	106		documentation of the mortgage or judgment lien, and
62		-
63	107		b. interest on a per diem basis for the unpaid balance;
64	108		and
65		-
66	109		6. "Title insurance company " means a corporation or other
67	110		business entity authorized and licensed to transact business of
68	111		insuring titles to interests in real property in this state.
69		-
70	112		B. This section applies only to a mortgage or judgment lien on
71	113		property consisting exclusively of all real property including
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72	141		commercial or agriculture or a one- to four-family residence,
73	142		including a residential unit in a condominium regime.
74		-
75	143		C. If a mortgagee or judgment lienholder fails to execute and
76	144		deliver a release of mortgage or judgment lien to the mortgagor or
77	145		designated agent of the mortgagor within sixty (60) days after the
78	146		date of receipt of payment of the mortgage by the mortgagee or
79	147		judgment lienholder in accordance with a payoff statement furnished
80	148		by the mortgagee or judgment lienholder or its mortgage servicer, an
81	149		authorized officer of a title insurance company or a duly appointed
82	150		agent of the title insurance company, on behalf of the mortgagor or
83	151		a transferee of the mortgagor who acquired title to the prope rty
84	152		described in the mortgage, may execute and record an affidavit in
85	153		the real property records of each county in which the mortgage or
86	154		judgment lien was recorded. The written approval signature of the
87	155		agent of the title insurance company or attorney shall appear on the
88	156		affidavit if executed by an agent .
89		-
90	157		D. An affidavit executed under this section shall state that:
91		-	ENR. H. B. NO. 2397 Page 3
92	158		1. The affiant is an authorized officer or a duly appointed
93	159		agent of a title insurance c ompany;
94		-
95	160		2. The affidavit is made on behalf of the mo rtgagor or a
96	161		transferee of the mortgagor who acquired title to the property
97	162		described in the mortgage;
98	163
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99	190		3. The mortgagee or judgment lienholder provided a payoff
100	191		statement with respect to the loan secure d by the mortgage or
101	192		judgment lien;
102		-
103	193		4. The affiant has ascertained that the mortgagee or judgment
104	194		lienholder has received payment of the loan secured by the mortgage
105	195		or judgment lien in accordance with the payoff statement, as
106	196		evidenced by:
107		-
108	197		a. a bank check, certified check, cashier's check, escrow
109	198		account check from the title company or title
110	199		insurance agent or attorney trust account check that
111	200		has been negotiated by the mortgagee or judgment
112	201		lienholder,
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114	202		b. wire transfer, or
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116	203		c. another documentary evidence of the receipt of payment
117	204		by the mortgagee or judgment lienholder;
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119	205		5. More than sixty (60) days have elapsed since the date
120	206		payment was received by the mortgagee or judgment lienholder;
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122	207		6. The title insurance company or its duly appointed agent has
123	208		given the mortgagee or judgment lienholder at least fifteen (15)
124	209		days' notice in writing by certified mail, return receipt requested,
125	210		of its intention to execute and record an affidavit in accordance
126	211		with this section, with a copy of the proposed affidavit att ached to
127	212		the written notice; and
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129	240		7. The mortgagee or judgment lienholder has not responded in
130	241		writing to the notification at least fifteen (15) days before the
131	242		affidavit is recorded.
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133	243		E. The affidavit must include the names of the mortgagor and
134	244		the mortgagee or judgment lienholder, the date of the mortgage, the
135	245		legal description of the property, and the book and page or clerk 's
136		-	document number of the real property records where the mortgage or ~~ENR. H. B. NO. 2397 Page 4~~
	246	+	document number of the real property records where the mortgage or
137	247		lien and/or modification is recorded, together with similar
138	248		information for a recorded assignment of the mortgage or judgment
139	249		lien.
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141	250		F. The affiant shall attach to the affidavit a photostatic
142	251		copy, certified by the affiant as a true copy of the original
143	252		document, of:
144		-
145	253		1. The documentary evidence that payment has been received by
146	254		the mortgagee or judgment lienholder, including the endorsement of
147	255		the mortgagee or judgment lienholder of a negotiated check if paid
148	256		by check or proof of a wire transfer if paid by wire. The bank
149	257		account number and routing number on the check or proof of wire
150	258		transfer may be redacted by the fil er; and
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152	259		2. The payoff statement.
153		-
154	260		G. An affidavit that is executed and recorded as provided by
155	261		this section shall operate as a release of the mortgage or judgment
156	262		lien described in the affidavit.
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158	290		H. The county clerk shall index the affidavit against the real
159	291		property described in the mortgage or judgment lien and the
160	292		affidavit.
161		-
162	293		I. A person who knowingly causes an affidavit with false
163	294		information to be executed and recorded under this section is liable
164	295		for the penalties for filing a false affidavit, inclu ding the
165	296		penalties for commission of offenses pursuant to the appropriate
166	297		section of the penal code, and to a party injured by the affidavit
167	298		for actual damages of Five Thousand Dollars ($5,000.00), which ever
168	299		is greater. The Attorney General may sue to col lect the penalty.
169	300		If the Attorney General or an injured party bringing suit
170	301		substantially prevails in an action under this subsection, the court
171	302		may award reasonable attorney fees and court costs to the prevailing
172	303		party.
173		-
174	304		J. Nothing provided for in this s ection shall preclude the
175	305		mortgagor from availing itself of the remedies provided for in
176	306		Section 15 of Title 46 of the Oklahoma Statutes which provides for
177	307		penalties against the mortgagee or judgment lienholder for failure
178	308		to release a mortgage or judgment lien pursuant to the payment in
179	309		full and request for release on behalf of the mortgagor.
180		-
181		-	SECTION 2. This act shall become effective November 1, 2021. ENR. H. B. NO. 2397 Page 5
182		-
183		-	Passed the House of Representatives the 10th day of March, 2021.
184		-
185		-
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187		-
188		-	Presiding Officer of the House
189		-	of Representatives
190		-
191		-
192		-	Passed the Senate the 21st day of April, 2021.
193		-
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196		-
197		-	Presiding Officer of the Senate
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199		-
200		-
201		-	OFFICE OF THE GOVERNOR
202		-	Received by the Office of the Governor this ____________________
203		-	day of ___________________, 20_______, at _______ o'clock _______ M.
204		-	By: _________________________________
205		-	Approved by the Governor of the State of Oklahoma this _________
206		-	day of ___________________, 20_______, at _______ o'clock _______ M.
207		-
208		-
209		-	_________________________________
210		-	Governor of the State of Oklahoma
211		-
212		-	OFFICE OF THE SECRETARY OF STATE
213		-	Received by the Office of the Secretary of State this __________
214		-	day of ___________________, 20_______, at _______ o'cl ock _______ M.
215		-	By: _________________________________
	310	+	SECTION 2. This act shall become effective November 1, 2021.
	311	+	COMMITTEE REPORT BY: COMMITTEE ON J UDICIARY
	312	+	March 30, 2021 - DO PASS