Mortgage release; lien release; agent of mortgagor; effective date.
Impact
The passage of HB 2398 directly affects Oklahoma's regulations regarding mortgage transactions and adds a layer of accountability for lien holders. By establishing clear timelines for the release of liens, the bill aims to streamline the process for mortgagors and enhance their ability to recover penalties if mortgage holders do not adhere to the stipulated guidelines. This move could potentially expedite the transition of real estate transactions and improve overall efficiency within the state’s real estate market.
Summary
House Bill 2398 relates to mortgage and lien releases in the state of Oklahoma. The bill mandates that any mortgage or judgment lien on real estate must be released by the holder within thirty days after the payment of the debt secured by that mortgage. If the lien holder fails to comply, the mortgagor or their representative may request a written release, which the holder must then address within ten days, or face penalties for non-compliance. These penalties are designed to ensure that lien holders fulfill their obligations in a timely manner and could amount to a specific daily penalty capped at $100.00 per day.
Sentiment
The sentiment surrounding HB 2398 appears to be largely positive, as it addresses long-standing frustrations related to lengthy and often non-responsive processes associated with mortgage releases. Proponents of the bill argue that it serves to protect the rights of mortgagors and provides them with more power in what can often be an opaque system. Overall, while the bill is likely viewed favorably among real estate advocates, there may still be concerns from some quarters about the implementation and enforcement aspects of the associated penalties.
Contention
Despite the general support for HB 2398, there may be contention related to the responsibilities placed on lien holders and the potential for increased litigation surrounding the new penalties. Title insurance companies are noted as having the ability to act on behalf of mortgagors to recover penalties, which could create a more litigious environment as parties navigate these new requirements. There is also the potential for debate on how effectively these penalties will be enforced and whether they will indeed deter delays by lien holders.
An Act Requiring Mortgagees To Deliver Mortgage Releases To The Town Clerk And To Accept Certain Forms Of Payment Tendered In Satisfaction Or Partial Satisfaction Of A Mortgage.
Grants a right of action where registration fees of residential mortgages in default are imposed on the mortgagor; increases fee amount authorized to be imposed on mortgagees or their agents.
Grants a right of action where registration fees of residential mortgages in default are imposed on the mortgagor; increases fee amount authorized to be imposed on mortgagees or their agents.