An Act
ENROLLED HOUSE
BILL NO. 4151 By: Schreiber, Hefner, and
Lepak of the House
and
Rader of the Senate
An Act relating to insurance; amending 36 O.S. 2021,
Section 5008, which relates to release of mortgage
affidavit; providing that a title insurance company
may not charge a fee for the filing of a release of
mortgage affidavit; and providing an effective date .
SUBJECT: Insurance
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 36 O.S. 2021, Section 5008, is
amended to read as follows:
Section 5008. A. As used in this section:
1. "Mortgage" means a contract lien on an interest in real
property;
2. "Mortgagee" means:
a. the grantee of a mortgage,
b. if a mortgage has been assigned of record, the last
person or entity to whom the mortgage or judgment lien
has been assigned of record, or ENR. H. B. NO. 4151 Page 2
c. if a mortgage is serviced by a mortgage servicer, the
mortgage servicer;
3. "Mortgage servicer" means the last person or entity to whom
a mortgagor has been instructed by a mortgagee to send payments for
the loan secured by a mortgage or judgment lien. A person or entity
transmitting a payoff statement is considered the mortgage ser vicer
for the mortgage or judgment lien described in the payoff statement;
4. "Mortgagor" means the grantor of a mortgage;
5. "Payoff statement" means a statement of the amount of:
a. the unpaid balance of a loan secured by a mortgage or
judgment lien, including principal, int erest, and
other charges properly assessed under the loan
documentation of the mortgage or judgment lien, and
b. interest on a per diem basis for the unpaid balance;
and
6. "Title insurance company " means a corporation or other
business entity authorized and licensed to transact business of
insuring titles to interests in real property in this state.
B. This section applies only to a mortgage or judgment lien on
all real property including commercial or agriculture or a one - to
four-family residence, incl uding a residential unit in a condominium
regime.
C. If a mortgagee or judgment lienholder fails to execute and
deliver a release of mortgage or judgment lien to the mortgagor or
designated agent of the mortgagor within sixty (60) d ays after the
date of receipt of payment of the mortgage by the mortgagee o r
judgment lienholder in accordance with a payoff statement furnished
by the mortgagee or judgment lienholder or its mortgage servicer, an
authorized officer of a title insurance co mpany or a duly appoint ed
agent of the title insurance company, on behalf o f the mortgagor or
a transferee of the mortgagor who acquired title to the property
described in the mortgage, may execute and record an affidavit in
the real property records of ea ch county in which the mortgage or
judgment lien was recorded. The written signature of the agent of
the title insurance company or attorney shall appear on the
affidavit. An authorized officer of a title insurance company or a ENR. H. B. NO. 4151 Page 3
duly appointed agent of th e title insurance compa ny shall not
require a mortgagor or a judgment debtor to pay a fee associated
with the affidavit referenced in this subsection.
D. An affidavit executed under this section shall state that:
1. The affiant is an authorized offi cer or a duly appointed
agent of a title insurance company;
2. The affidavit is made on behalf of the mortgagor or a
transferee of the mortgagor who acquired title to the property
described in the mortgage;
3. The mortgagee or judgment lienholder provide d a payoff
statement with respect to the loan secured by the mortgage or
judgment lien;
4. The affiant has ascertained that the mortgagee or judgment
lienholder has received payment of the loan secured by the mortgage
or judgment lien in accordance with t he payoff statement, as
evidenced by:
a. a bank check, certified check, ca shier's check, escrow
account check from the title company or title
insurance agent or attorney trust account check that
has been negotiated by the mortgagee or judgment
lienholder,
b. wire transfer, or
c. another documentary evidence of the receipt of pay ment
by the mortgagee or judgment lienholder;
5. More than sixty (60) days have elapsed since the date
payment was received by the mortgagee or judgment lienholder;
6. The title insurance company or its duly appointed agent has
given the mortgagee or jud gment lienholder at least fifteen (15)
days' notice in writing by certified mail, return receipt requested,
of its intention to execute and record an affidavit in accordance
with this section, with a copy of th e proposed affidavit attached to
the written notice; and
ENR. H. B. NO. 4151 Page 4
7. The mortgagee or judgment lienholder has not responded in
writing to the notification at least fifteen (15) days before the
affidavit is recorded.
E. The affidavit mu st include the names of the mortgagor and
the mortgagee or judgment lienho lder, the date of the mortgage, the
legal description of the property, and the book and page or clerk 's
document number of the real property records where the mortgage or
lien and/or modification is recorded, t ogether with similar
information for a recorde d assignment of the mortgage or judgment
lien.
F. The affiant shall attach to the affidavit a photostatic
copy, certified by the affiant as a true copy of the original
document, of:
1. The documentary evidenc e that payment has been received by
the mortgagee or judgment lienholder, including the endorsement of
the mortgagee or judgment lienholder of a negotiated check if paid
by check or proof of a wire transfer if paid by wire. The bank
account number and rou ting number on the check or proof of wire
transfer may be redacted by the filer; and
2. The payoff statement.
G. An affidavit that is executed and recorded as provided by
this section shall operate as a release of the mortgage or judgment
lien described in the affidavit.
H. The county clerk shall i ndex the affidavit against the real
property described in the mortgage or judgment lien and the
affidavit.
I. A person who knowingly causes an affidavit with false
information to be executed and recorded un der this section is liable
for the penalties for filing a false affidavit, including the
penalties for commission of offenses pursuant to the appropriate
section of the penal code, and to a party injured by the affidavit
for actual damages of Five Thousand Dollars ($5,000.00), whichever
is greater. The Attorney General may sue to collect the penalty.
If the Attorney General or an injured party bringing suit
substantially prevails in an action under this subsection, the court
may award reasonable attorney fees and court costs to the prevailing
party.
ENR. H. B. NO. 4151 Page 5
J. Nothing provided for in this section shall preclude the
mortgagor from availing itself of the remedies provided for in
Section 15 of Title 46 of the Oklahoma Statutes which provides for
penalties against the mortgagee or judgment lienholder for failure
to release a mortgage or judgment lien pursuant to the payment in
full and request for release on behalf of the mortgagor.
SECTION 2. This act shall become effective November 1, 2024.
ENR. H. B. NO. 4151 Page 6
Passed the House of Representatives the 12th day of March, 2024.
Presiding Officer of the House
of Representatives
Passed the Senate the 16th day of April, 2024.
Presiding Officer of the Senate
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this ____________________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________
Approved by the Governor of the State of Oklahoma this _____ ____
day of ___________________, 20_______, at ___ ____ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this __________
day of ___________________, 20_______, at _______ o'clock ___ ____ M.
By: _________________________________