HF704 (Legislative Session 94 (2025-2026))
Mortgage payment satisfaction provisions modified.
Related bill: SF2960
AI Generated Summary
This legislative bill updates Minnesota's rules regarding the processing and satisfaction of mortgage payments. It specifies:
Mortgage lenders or servicers must officially record and acknowledge the full repayment of a mortgage within 45 days after receiving a full payment as defined in a payoff statement.
If a mistake is made in calculating the final mortgage payoff amount where it is understated, the lender can issue a corrected payoff statement. However, they cannot deny the mistake if it was reasonably relied upon detrimentally by another party.
The bill also stiffens penalties for mortgage lenders who fail to properly discharge a mortgage once it is fully paid. If they do not do so within 45 days of payment, they are liable for any real damages suffered by the borrower, and legal action can be brought to resolve the issue.
Basically, this bill aims to ensure that once a mortgage is fully paid off, the process is completed swiftly and accurately, protecting homeowners and ensuring that lenders or servicers are accountable for errors and delays.
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| February 12, 2025 | House | Floor | Action | Introduction and first reading, referred to | Commerce Finance and Policy |
| March 19, 2025 | House | Floor | Action | Author added |
Citations
[
{
"analysis": {
"added": [
"A new subdivision clarifying responsibilities when the payoff amount is understated."
],
"removed": [
"None identified."
],
"summary": "This bill modifies provisions related to the delivery of satisfaction of mortgage under section 47.208.",
"modified": [
"Timeline for delivering satisfaction of mortgage adjusted from unspecified to within 45 days."
]
},
"citation": "47.208"
},
{
"analysis": {
"added": [
"Changes in timeline requirements for discharging a mortgage."
],
"removed": [
"Prior language that did not specify a timeline for action."
],
"summary": "This bill amends the penalty provisions for failure to discharge a mortgage under section 507.41.",
"modified": [
"Penalty conditions modified from 10 days to 45 days for mortgage discharge after full performance."
]
},
"citation": "507.41"
}
]