Bill Text: IA SF445 | 2013-2014 | 85th General Assembly | Enrolled

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: A bill for an act relating to the transfer of real estate and the filing of a mortgage release certificate, providing for a fee and making remedies applicable, and including effective date provisions. (Formerly SSB 1073 and SF 305.) Effective 5-1-13.

Sponsorship: Committee Bill

Status: (Passed) 2013-12-31 - END OF 2013 ACTIONS [SF445 Detail]

Download: Iowa-2013-SF445-Enrolled.html

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Senate File 445
AN ACT
RELATING TO THE TRANSFER OF REAL ESTATE AND THE FILING OF
A MORTGAGE RELEASE CERTIFICATE, PROVIDING FOR A FEE AND
MAKING REMEDIES APPLICABLE, AND INCLUDING EFFECTIVE DATE
PROVISIONS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 16.92, Code 2013, is amended by striking
the section and inserting in lieu thereof the following:
16.92 Real estate transfer —— mortgage release certificate.
1. Definitions. As used in this section, unless the context
otherwise requires:
a. “Applicant” means a person authorized to regularly lend
moneys to be secured by a mortgage on real property in this
state, a licensed real estate broker, a licensed attorney, a
participating abstractor, or a licensed closing agent.
b. “Closing agent” means a closing agent subject to the
licensing requirements of chapter 535B.
c. “Division” means the title guaranty division in the Iowa
finance authority, the director of the division, or a designee
of the director.
d. “Division board” means the board of directors of the
title guaranty division of the Iowa finance authority.
e. “Mortgage” means a mortgage or mortgage lien on an
interest in real property in this state given to secure a loan
in an original principal amount equal to or less than the
maximum principal amount as determined by the division board
and adopted by the Iowa finance authority pursuant to chapter
17A.

Senate File 445, p. 2
f. “Mortgage servicer” means the mortgagee or a person
other than the mortgagee to whom a mortgagor or the mortgagor’s
successor in interest is instructed by the mortgagee to
send payments on a loan secured by the mortgage. A person
transmitting a payoff statement for a mortgage is a mortgage
servicer for purposes of such mortgage and this chapter.
g. “Mortgagee” means the grantee of a mortgage. If a
mortgage has been assigned of record, the mortgagee is the last
person to whom the mortgage is assigned of record.
h. “Mortgagor” means the grantor of a mortgage.
i. “Participating abstractor” means an abstractor
participating in the title guaranty program.
j. “Payoff statement” means a written statement furnished by
the mortgage servicer which sets forth all of the following:
(1) The unpaid balance of the loan secured by a mortgage,
including principal, interest, and any other charges properly
due under or secured by the mortgage, or the amount required to
be paid in order to release or partially release the mortgage.
(2) The address where payment is to be sent or other
specific instructions for making a payment.
(3) The legal description, street address, or other
description sufficient to identify the property that will be
released from the mortgage.
2. Application. The division may execute and record a
certificate of release on behalf of the division in the real
property records of each county in which a mortgage is recorded
as provided in this section if all of the following are
satisfied:
a. The applicant submits all of the following in writing to
the division:
(1) A payoff statement or other documentation of the amount
due, acceptable to the division, as evidence that the mortgage
does not continue to secure an unpaid obligation due the
mortgagee or an unfunded commitment by the mortgagor to the
mortgagee.
(2) Evidence that payment was made, including, if
available, a statement as to the date the payment was received
by the mortgagee or mortgage servicer, with supporting
documentation, as evidenced by one or more of the following:
(a) A bank check, certified check, escrow account check,
real estate broker trust account check, attorney trust account
check, or wire receipt, that was negotiated by the mortgagee or
mortgage servicer.

Senate File 445, p. 3
(b) Other documentary evidence, acceptable to the division,
of payment to the mortgagee or mortgage servicer.
b. The applicant confirms in writing to the division all of
the following:
(1) More than thirty days have elapsed since the date the
payment was sent.
(2) An effective satisfaction or release of the mortgage
has not been executed and recorded within thirty days after the
date of payment.
3. Notice.
a. Prior to the execution and filing of a certificate of
release pursuant to this section, the division shall notify the
mortgage servicer in writing of all of the following:
(1) The mortgage has not been released.
(2) The division’s intention to execute and record
a certificate of release pursuant to this section after
expiration of the thirty-day period following the sending of
the notice.
b. The notice shall include instructions to notify the
division in writing within thirty days of the effective date of
the notice of any reason why the certificate of release should
not be executed and recorded.
c. For purposes of this section, notice may be served by any
of the following methods:
(1) By certified mail or any commercial delivery service,
properly addressed with postage or cost of delivery provided
for.
(2) By facsimile transmission or electronic mail to an
address provided by the mortgage servicer, but only if the
mortgage servicer agrees to receive notice in that manner.
(3) By publication in a newspaper of general circulation
published in each county where the mortgage is recorded once
each week for three consecutive weeks after receiving an
affidavit by the applicant that service in accordance with the
provisions of subparagraph (1) or (2) cannot be made on the
mortgage servicer.
(4) By otherwise causing the notice to be received by the
mortgage servicer within the time it would have been received
if notice had been served by certified mail or commercial
delivery service.
d. For purposes of this section, notice is effective under
any of the following circumstances:
(1) The day after the notice is deposited with a commercial

Senate File 445, p. 4
delivery service for overnight delivery.
(2) Three days after the notice is deposited with the United
States postal service, or with a commercial delivery service
for delivery other than by overnight delivery.
(3) The day the notice is transmitted, if served pursuant to
paragraph “c” , subparagraph (2).
(4) On the last day of publication, if published pursuant to
paragraph “c” , subparagraph (3).
(5) The day the notice is received, if served by a method
other than as provided in paragraph “c” , subparagraph (1), (2),
or (3).
e. If, prior to executing and recording the certificate of
release, the division receives a written notification setting
forth a reason that is satisfactory to the division as to why
the certificate of release should not be executed, the division
shall not execute and record the certificate of release.
4. Contents. A certificate of release executed under this
section must contain substantially the information set forth
as follows:
a. The name of the mortgagor.
b. The name of the original mortgagee.
c. The date of the mortgage.
d. The date of recording, including the volume and page or
other applicable recording information in the real property
records of each county where the mortgage is recorded.
e. A statement that the release was prepared in accordance
with this section.
5. Execution. A certificate of release under this section
shall be executed and acknowledged in the same manner as
required by law for the execution of a deed.
6. Recording. The certificate of release or partial
release shall be recorded in each county where the mortgage is
recorded.
7. Effect.
a. For purposes of a release or partial release of a
mortgage, a certificate of release executed under this section
that contains the information and statements required under
subsection 4 is prima facie evidence of the facts contained in
such release or partial release, is entitled to be recorded
with the county recorder where the mortgage is recorded,
operates as a release or partial release of the mortgage
described in the certificate of release, and may be relied upon
by any person who owns or subsequently acquires an interest in

Senate File 445, p. 5
the property released from the mortgage. The county recorder
shall rely upon the certificate of release to release the
mortgage.
b. Recording of a wrongful or erroneous certificate of
release by the division shall not relieve the mortgagor, or the
mortgagor’s successors or assigns on the debt, from personal
liability on the loan or on other obligations secured by the
mortgage.
c. In addition to any other remedy provided by law, if the
division through an act of negligence wrongfully or erroneously
records a certificate of release under this section, the
division is liable to the mortgagee and mortgage servicer
for actual damages sustained due to the recording of the
certificate of release.
d. Upon payment of a claim relating to the recording of
a certificate of release, the division is subrogated to the
rights of the claimant against all persons relating to the
claim.
8. Fee. The division may charge a fee for services under
this section.
Sec. 2. EFFECTIVE UPON ENACTMENT. This Act, being deemed of
immediate importance, takes effect upon enactment.
______________________________
PAM JOCHUM
President of the Senate
______________________________
KRAIG PAULSEN
Speaker of the House
I hereby certify that this bill originated in the Senate and
is known as Senate File 445, Eighty-fifth General Assembly.
______________________________
MICHAEL E. MARSHALL
Secretary of the Senate
Approved _______________, 2013
______________________________
TERRY E. BRANSTAD
Governor