Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 636
Barcode 143382
CHAMBER ACTION
Senate House
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04/16/2007 04:30 PM .
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11 The Committee on Banking and Insurance (Lawson) recommended
12 the following amendment:
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14 Senate Amendment (with title amendment)
15 On page 8, between lines 17 and 18,
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17 insert:
18 Section 8. Subsection (1) of section 701.04, Florida
19 Statutes, is amended to read:
20 701.04 Cancellation of mortgages, liens, and
21 judgments.--
22 (1) Within 14 days after receipt of the written
23 request of a mortgagor, the holder of a mortgage shall deliver
24 to the mortgagor at a place designated in the written request
25 an estoppel letter setting forth the unpaid balance of the
26 loan secured by the mortgage, including the principal,
27 interest, any other charges properly due under and secured by
28 the mortgage, and interest on a per-day basis for the unpaid
29 balance principal balance, interest due, and the per diem
30 rate. Whenever the amount of money due on any mortgage, lien,
31 or judgment is to shall be fully paid to the person or party
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Florida Senate - 2007 COMMITTEE AMENDMENT
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1 entitled to the payment thereof, the mortgagee, creditor, or
2 assignee, or the attorney of record in the case of a judgment,
3 to whom such payment has shall have been made, shall execute
4 in writing an instrument acknowledging satisfaction of said
5 mortgage, lien, or judgment and have the same acknowledged, or
6 proven, and duly entered of record in the book provided by law
7 for such purposes in the proper county. Within 60 days after
8 of the date of receipt of the full payment of the mortgage,
9 lien, or judgment, the person required to acknowledge
10 satisfaction of the mortgage, lien, or judgment shall send or
11 cause to be sent the recorded satisfaction to the person who
12 has made the full payment. In the case of a civil action
13 arising out of the provisions of this section, the prevailing
14 party is shall be entitled to attorney's fees and costs.
15 Section 9. Section 701.041, Florida Statutes, is
16 amended to read:
17 701.041 Title insurer; mortgage release certificate.--
18 (1) DEFINITIONS.--For purposes of this section, the
19 term:
20 (a) "Estoppel letter" means a statement of the amount
21 of:
22 1. The unpaid balance of a loan secured by a mortgage,
23 including principal, interest, and any other charges properly
24 due under or secured by the mortgage; and
25 2. The interest on a per-day basis for the unpaid
26 balance. "Mortgage" means a mortgage or mortgage lien on an
27 interest in real property in this state, including any
28 modifications thereof, given to secure a loan in the principal
29 amount of $500,000 or less, other than a mortgage securing an
30 open-end or revolving credit agreement.
31 (b) "Mortgagee" means:
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Florida Senate - 2007 COMMITTEE AMENDMENT
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1 1. The grantee of a mortgage; or
2 2. If a mortgage has been assigned of record, the last
3 person to whom the mortgage has been assigned of record.
4 (c) "Mortgage servicer" means the last person to whom
5 a mortgagor or the mortgagor's successor in interest has been
6 instructed by a mortgagee to send payments on a loan secured
7 by a mortgage. The A person transmitting an estoppel letter a
8 payoff statement is the mortgage servicer for the mortgage
9 described in the estoppel letter payment statement.
10 (d) "Mortgagor" means the grantor of a mortgage.
11 (e) "Payoff statement" means a statement of the amount
12 of:
13 1. The unpaid balance of a loan secured by a mortgage,
14 including principal, interest, and any other charges properly
15 due under or secured by the mortgage.
16 2. Interest on a per-day basis for the unpaid balance.
17 (e)(f) "Record" means to record with the clerk of the
18 circuit court or the comptroller in the county or counties in
19 which the real property securing the mortgage is located.
20 (f)(g) "Title insurer" means a corporation or other
21 business entity authorized and licensed under chapter 624 to
22 insure to transact the business of insuring titles to
23 interests in real property in this state under chapter 624.
24 (2) APPLICATION.--This section applies to a mortgage
25 secured by a loan in the principal amount of $500,000 or less,
26 as determined from the recorded mortgage, and which contains
27 no disclosure of record that the mortgage secures an open-end
28 or revolving line of credit agreement.
29 (3)(2) CERTIFICATE OF RELEASE.--An officer or duly
30 appointed agent of a title insurer may, on behalf of a
31 mortgagor or a person who acquired from the mortgagor title to
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Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 636
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1 all or a part of the property described in a mortgage, execute
2 a certificate of release that complies with the requirements
3 of this section and record the certificate of release in the
4 real property records of each county in which the mortgage is
5 recorded if a satisfaction or release of the mortgage has not
6 been executed and recorded after the date payment in full of
7 the loan secured by the mortgage was made in accordance with
8 an estoppel letter a payoff statement furnished by the
9 mortgagee or the mortgage servicer.
10 (4)(3) CONTENTS.--A certificate of release executed
11 under this section must contain:
12 (a) The name of the mortgagor, the name of the
13 original mortgagee, and, if applicable, the mortgage servicer;
14 the date of the mortgage; the date of recording; and the
15 volume and page or document number in the real property
16 records in which the mortgage is recorded, together with
17 similar information for the last recorded assignment of the
18 mortgage.
19 (b) A statement that the mortgage being released has
20 been determined eligible for release under this section,
21 including any modifications thereof, was in the principal
22 amount of $500,000 or less.
23 (c) The name of the title insurer filing the
24 certificate of release, a statement that the person executing
25 the certificate of release is an officer or a duly appointed
26 agent of the title insurer, a statement that the title insurer
27 is authorized and licensed to insure transact the business of
28 insuring titles to interests in real property in this state
29 under chapter 624 or chapter 626, and, if executed by a duly
30 appointed agent, shall further provide the recording
31 information of the appointment of such agent as required by
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1 subsection (5) (4).
2 (d) A statement that the certificate of release is
3 made on behalf of the mortgagor or a person who acquired title
4 from the mortgagor to all or a part of the property described
5 in the mortgage.
6 (e) A statement that the mortgagee or mortgage
7 servicer provided an estoppel letter a payoff statement which
8 was used to make payment in full of the unpaid balance of the
9 loan secured by the mortgage.
10 (f) A statement that payment in full of the unpaid
11 balance of the loan secured by the mortgage was made in
12 accordance with an estoppel letter the payoff statement and
13 that a copy of the certificate of release was sent to the
14 mortgagee or mortgage servicer that provided the estoppel
15 letter payoff statement.
16 (5)(4) EXECUTION.--
17 (a) A certificate of release authorized by subsection
18 (3) (2) must be duly executed, sworn to or affirmed under
19 penalty of perjury before a notary public, and recorded and
20 may be executed by an officer of a title insurer or by a duly
21 appointed agent of a title insurer. Such delegation to an
22 agent by a title insurer does shall not relieve the title
23 insurer of any liability for damages caused by the agent for
24 the execution or recordation of a certificate of release.
25 (b) The appointment of an agent must be duly executed,
26 acknowledged, and recorded by an officer of a title insurer
27 and must state:
28 1. The title insurer as the principal.
29 2. The identity of the person, partnership, or
30 corporation authorized to act as agent to execute and record
31 certificates of release under provided for in this section on
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1 behalf of the title insurer.
2 3. That the agent has the full authority to execute
3 and record certificates of release under provided for in this
4 section on behalf of the title insurer.
5 (c) A separate appointment of agent is shall not be
6 necessary for each certificate of release if provided that at
7 least one such appointment is recorded in the county in which
8 the mortgaged property is located. The appointment of agent
9 must be rerecorded where necessary to establish the authority
10 of the agent, but such authority shall continue until a
11 revocation of appointment is recorded in the office of the
12 county recorder in which the appointment of agent was
13 recorded.
14 (d) After recording recordation of a title insurer's
15 revocation of appointment in the office of the county recorder
16 in which the appointment was recorded, the agent whose
17 appointment is revoked in such county shall have no further
18 authority to execute or record certificates of release as
19 provided in this section on behalf of that title insurer with
20 respect to any mortgages recorded in that county, and no such
21 certificate of release thereafter executed or recorded by that
22 agent on behalf of that title insurer is shall be effective to
23 release any mortgage recorded in that county.
24 (6)(5) EFFECT.--For purposes of releasing the
25 mortgage, a certificate of release containing the information
26 and statements provided for in subsection (4) (3) and executed
27 as provided in subsection (5) may (4) is entitled to be
28 recorded with the county recorder and operates as a release of
29 the mortgage described in the certificate of release. The
30 county recorder shall rely upon the certificate to release the
31 mortgage. Recording of a certificate of release by a title
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Florida Senate - 2007 COMMITTEE AMENDMENT
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1 insurer or its agent shall not relieve the mortgagor, or the
2 mortgagor's successors or assigns, from any personal liability
3 on the loan or other obligations secured by the mortgage. A
4 certificate of release recorded pursuant to this section
5 fulfills any other obligation of the mortgagee or mortgage
6 servicer to file a satisfaction or release of the mortgage.
7 (7)(6) LIABILITY OF TITLE INSURER.--
8 (a) In addition to any other remedy provided by law, a
9 title insurer and a title insurance agent recording a
10 certificate of release under this section shall be liable to
11 the holder of the obligation secured by the mortgage for
12 actual damage sustained due to the recording of the
13 certificate of release. Reasonable costs and attorneys' fees
14 shall be awarded to the prevailing party.
15 (b) The title insurer named in a certificate of
16 release filed by a duly appointed agent shall be liable
17 pursuant to this subsection without regard to whether the
18 title insurer authorized the specific certificate of release
19 recorded by the agent.
20 (c) The title insurer and the title insurance agent
21 shall have no liability under this subsection if the title
22 insurer or title insurance agent shows that payment in full of
23 the unpaid balance of the loan secured by the mortgage was
24 made in accordance with the estoppel letter payoff statement
25 furnished by the mortgagee or the mortgage servicer.
26 (d) Liability of a title insurer under pursuant to
27 this section is shall be considered to be a title insurance
28 claim on real property in this state pursuant to s. 627.7865.
29 (8)(7) RECORDING.--If a mortgage is recorded in more
30 than one county and a certificate of release is recorded in
31 one of such counties, a certified copy of the certificate of
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1 release may be recorded in another of such counties with the
2 same effect as the original. In all cases, the certificate of
3 release must shall be entered and indexed as satisfactions of
4 mortgage are entered and indexed.
5 (8) APPLICATION.--This section applies only to a
6 mortgage, including any modifications of such mortgage, in the
7 principal amount of $500,000 or less.
8 (9) PREMIUM.--The Financial Services Commission shall
9 adopt rules establishing an actuarially sound premium charge
10 to be made for each certificate of release recorded pursuant
11 to this section.
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13 (Redesignate subsequent sections.)
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16 ================ T I T L E A M E N D M E N T ===============
17 And the title is amended as follows:
18 On page 1, line 15, after the semicolon,
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20 insert:
21 amending s. 701.04, F.S.; clarifying the
22 content of estoppel letters sent to mortgagors;
23 amending s. 701.041, F.S.; revising definitions
24 relating to mortgage certificates of release;
25 revising limitations on the application of the
26 statute; adding title insurance agents for the
27 purpose of assigning liability for damages;
28 deleting the authority of the Financial
29 Services Commission to adopt rules establishing
30 charges;
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