Bill > HF704

This bill modifies Minnesota's laws regarding mortgage payment satisfaction and payoff procedures, introducing several key changes. The bill requires mortgagees or mortgage servicers to issue and submit a valid mortgage satisfaction document to the county recorder within 45 days of receiving full payment, removing the previous requirement of a written request. It also establishes new provisions for handling understated payoff statements, allowing mortgagees or servicers to send corrected statements under specific conditions. If a mortgagor or their authorized agent (such as a title insurer) receives and has a reasonable opportunity to act on a corrected payoff statement before making payment, the corrected statement will supersede the earlier one. The bill prohibits mortgagees or servicers from denying the accuracy of an understated payoff amount against parties who reasonably and detrimentally rely on it, while preserving their right to recover any unpaid sums from persons liable for the loan. Additionally, the bill clarifies that if a mortgagee fails to discharge a mortgage within 45 days after receiving full payment, they will be liable to the mortgagor for actual damages, and these damages can be pursued through an action for mortgage discharge.

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https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF0704&ssn=0&y=2025