Bill > SF2960

This bill modifies Minnesota's laws regarding mortgage payment satisfaction, focusing on three key provisions. First, it requires mortgage lenders or servicers to issue and submit a recordable satisfaction of mortgage within 45 days of receiving full payment, changing the previous requirement that satisfaction be issued only upon written request. Second, the bill introduces new rules about payoff statements, allowing mortgage servicers to send corrected statements if an initial payoff amount was understated, while protecting borrowers who reasonably rely on the original statement. Specifically, if a borrower receives and has a reasonable opportunity to act on a corrected payoff statement before making payment, the corrected statement will supersede the earlier one. Third, the bill updates penalties for mortgage lenders who fail to discharge a mortgage, maintaining the existing provision that lenders are liable for actual damages if they do not discharge the mortgage within 45 days after receiving full payment. These changes aim to provide more clarity and protection for both borrowers and lenders in the mortgage satisfaction process, ensuring timely and accurate resolution of mortgage payments.

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https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF2960&ssn=0&y=2025