Florida Senate - 2022                                    SB 1016
       
       
        
       By Senator Burgess
       
       
       
       
       
       20-00661A-22                                          20221016__
    1                        A bill to be entitled                      
    2         An act relating to mortgage payoff letters; amending
    3         s. 701.04, F.S.; revising the timeframe in which
    4         mortgagees must send an estoppel letter after
    5         receiving a written request; revising requirements for
    6         written requests for estoppel letters; revising
    7         requirements for estoppel letters; prohibiting
    8         mortgagees or servicers of mortgages from taking
    9         certain actions relating to reliance on information in
   10         estoppel letters; authorizing mortgagees or servicers
   11         of mortgages to send corrected estoppel letters that
   12         supersede earlier estoppel letters under certain
   13         circumstances; prohibiting mortgagees or servicers of
   14         mortgages from denying the accuracy of information in
   15         estoppel letters if a person reasonably and
   16         detrimentally relied upon such information; providing
   17         prohibitions and requirements for mortgagees and
   18         servicers of mortgages relating to funds received in
   19         response to an estoppel letter; requiring mortgagees
   20         and servicers of mortgages to execute and record a
   21         specified instrument after certain payments are
   22         received; specifying that recording a satisfaction of
   23         the mortgage does not relieve mortgagors or successors
   24         or assigns of mortgagors from personal liability on
   25         the loan or obligations secured by the mortgage;
   26         entitling prevailing parties to attorney fees and
   27         costs; amending s. 701.041, F.S.; revising the
   28         definition of the term “estoppel letter”; making a
   29         technical change; providing an effective date.
   30          
   31  Be It Enacted by the Legislature of the State of Florida:
   32  
   33         Section 1. Section 701.04, Florida Statutes, is amended to
   34  read:
   35         701.04 Cancellation of mortgages, liens, and judgments.—
   36         (1)(a) Within 10 14 days after receipt of the written
   37  request of a mortgagor, a record title owner of the property, a
   38  fiduciary or trustee lawfully acting on behalf of a record title
   39  owner, or any other person lawfully authorized to act on behalf
   40  of a mortgagor or record title owner of the property, the
   41  mortgagee shall send holder of a mortgage shall deliver or cause
   42  the servicer of the mortgage to send deliver to the person
   43  making the request at a place designated in the written request
   44  an estoppel letter setting forth the unpaid balance of the loan
   45  properly due under or secured by the mortgage. If the request is
   46  made by a person other than a mortgagor, the request must
   47  include a copy of the instrument showing title in the property
   48  or lawful authorization
   49         (a) If the mortgagor, or any person lawfully authorized to
   50  act on behalf of the mortgagor, makes the request, the estoppel
   51  letter must include an itemization of the principal, interest,
   52  and any other charges properly due under or secured by the
   53  mortgage and interest on a per-day basis for the unpaid balance.
   54         (b) If a record title owner of the property, or any person
   55  lawfully authorized to act on behalf of a mortgagor or record
   56  title owner of the property, makes the request:
   57         1. The request must include a copy of the instrument
   58  showing title in the property or lawful authorization.
   59         (b)2. The estoppel letter may include the itemization of
   60  information required under paragraph (a), but must, at a
   61  minimum, include:
   62         1. The total unpaid balance of the loan properly due under
   63  or secured by the mortgage, including an itemization of the
   64  principal, interest, and other charges comprising the unpaid
   65  balance; and
   66         2.Interest on a per-day basis for the unpaid balance.
   67         (c)The mortgagee or servicer of the mortgage may not
   68  qualify, reserve the right to change, or condition or disclaim
   69  the reliance of others on the required information provided in
   70  the estoppel letter pursuant to paragraph (b) on a per-day
   71  basis.
   72         (d)3. The mortgagee or servicer of the mortgagee acting in
   73  accordance with a request in substantial compliance with this
   74  subsection paragraph is expressly discharged from any obligation
   75  or liability to any person on account of the release of the
   76  requested information, other than the obligation to comply with
   77  the terms of the estoppel letter.
   78         (e)If the mortgagee or servicer of the mortgage determines
   79  that any of the required information provided in the estoppel
   80  letter pursuant to paragraph (b) was inaccurate, the mortgagee
   81  or servicer of the mortgage may send a corrected estoppel
   82  letter. If the mortgagor or record title owner of the property,
   83  or any person lawfully authorized to act on behalf of the
   84  mortgagor or record title owner, receives and has a reasonable
   85  opportunity to act upon a corrected estoppel letter before
   86  making payment, the corrected estoppel letter supersedes any
   87  earlier estoppel letter.
   88         (f)If any of the required information provided in the
   89  estoppel letter pursuant to paragraph (b) was inaccurate, the
   90  mortgagee or servicer of the mortgage may not deny the accuracy
   91  of that information if a person reasonably and detrimentally
   92  relied upon such information.
   93         (g)A mortgagee or servicer of the mortgage may not refuse
   94  to accept or return any funds received in response to an
   95  estoppel letter and must promptly apply such funds to the unpaid
   96  balance of the loan properly due under or secured by the
   97  mortgage.
   98         (h)1.A written request for an estoppel letter under
   99  paragraph (a) must be sent to the mortgagee or servicer of the
  100  mortgage, using address information made available by the
  101  mortgagee or servicer of the mortgage for such purpose, by
  102  first-class mail, common carrier delivery service, facsimile
  103  transmission, or e-mail. The request shall be deemed received by
  104  the mortgagee or servicer the day that it is sent by facsimile
  105  transmission or e-mail, the fifth day after it is deposited with
  106  the U.S. Postal Service for prepaid first-class delivery, or the
  107  day of delivery by a common carrier delivery service.
  108         2.The mortgagee or servicer of the mortgage shall send the
  109  estoppel letter by first-class mail, common carrier delivery
  110  service, facsimile transmission, or e-mail, as directed in the
  111  written request, provided, however, that the mortgagee or
  112  servicer is not required to pay for common carrier delivery
  113  service. If the 10th day after receipt of a written request is a
  114  Saturday, Sunday, or legal holiday under the laws of this state
  115  or the United States, the estoppel letter shall be considered
  116  timely if sent on the next business day.
  117         (i)(c) A mortgage holder may provide the financial
  118  information required under this subsection to a person
  119  authorized under this subsection to request the financial
  120  information notwithstanding s. 655.059.
  121         (2) Whenever the amount of money due on any mortgage has
  122  either been fully paid or paid pursuant to an estoppel letter,
  123  the mortgagee or servicer of the mortgage must, within 60 days,
  124  execute in writing an instrument acknowledging satisfaction of
  125  the mortgage and have the instrument acknowledged, or proven,
  126  and duly entered in the official records of the proper county
  127  and send or cause to be sent the recorded satisfaction to the
  128  mortgagor or record title owner of the property. Recording a
  129  satisfaction of the mortgage by the mortgagee or servicer of the
  130  mortgage does not relieve the mortgagor, or the mortgagor’s
  131  successors or assigns, from any personal liability on the loan
  132  or other obligations secured by the mortgage.
  133         (3) Whenever the amount of money due on any mortgage, lien,
  134  or judgment has been fully paid to the person or party entitled
  135  to the payment thereof, the mortgagee, creditor, or assignee, or
  136  the attorney of record in the case of a judgment, to whom the
  137  payment was made, shall execute in writing an instrument
  138  acknowledging satisfaction of the mortgage, lien, or judgment
  139  and have the instrument acknowledged, or proven, and duly
  140  entered in the official records of the proper county. Within 60
  141  days after the date of receipt of the full payment of the
  142  mortgage, lien, or judgment, the person required to acknowledge
  143  satisfaction of the mortgage, lien, or judgment shall send or
  144  cause to be sent the recorded satisfaction to the person who has
  145  made the full payment. In the case of a civil action arising out
  146  of this section, the prevailing party is entitled to attorney
  147  fees and costs.
  148         (4)(3) Whenever a writ of execution has been issued,
  149  docketed, and indexed with a sheriff and the judgment upon which
  150  it was issued has been fully paid, it is the responsibility of
  151  the party receiving payment to request, in writing, addressed to
  152  the sheriff, return of the writ of execution as fully satisfied.
  153         (5)In the case of a civil action arising out of this
  154  section, the prevailing party is entitled to attorney fees and
  155  costs.
  156         Section 2. Paragraph (a) of subsection (1) and subsection
  157  (2) of section 701.041, Florida Statutes, are amended to read:
  158         701.041 Title insurer; mortgage release certificate.—
  159         (1) DEFINITIONS.—For purposes of this section:
  160         (a) “Estoppel letter” means a statement of the amount of:
  161         1. The unpaid balance of a loan properly due under or
  162  secured by a mortgage, including principal, interest, and any
  163  other charges comprising the unpaid balance properly due under
  164  or secured by the mortgage.
  165         2. Interest on a per-day basis for the unpaid balance.
  166         (2) CERTIFICATE OF RELEASE.—An officer or duly appointed
  167  agent of a title insurer may, on behalf of a mortgagor or a
  168  person who acquired from the mortgagor title to all or a part of
  169  the property described in a mortgage, execute a certificate of
  170  release that complies with the requirements of this section and
  171  record the certificate of release in the real property records
  172  of each county in which the mortgage is recorded if a
  173  satisfaction or release of the mortgage has not been executed
  174  and recorded after the date payment in full of the loan secured
  175  by the mortgage was made in accordance with an estoppel letter a
  176  payoff statement furnished by the mortgagee or the mortgage
  177  servicer.
  178         Section 3. This act shall take effect October 1, 2022.