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Assignment of Mortgage Guide

Assignment of Mortgage Guide

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Published by Nikki D White
Disclaimer:This guide is intended to give you a background regarding securitization an dsecuritization audits.It should not be construed as legal advice in anyway shape or form.If you seek legal advice,please seek a lawyer.

Assignment of Mortgage Guide

Mortgage may refer to: Mortgageloan,aloansecuredbyamortgageonrealproperty Mortgage,asecurityinterestonrealpropertygrantedtoalender,asinmortgagelaw Deed,themortgagedocument Hypothec,a speciesofencumbrance

AnAssignmentofmortgageiswhenabankorlender transferstheoriginalloanormortga
Disclaimer:This guide is intended to give you a background regarding securitization an dsecuritization audits.It should not be construed as legal advice in anyway shape or form.If you seek legal advice,please seek a lawyer.

Assignment of Mortgage Guide

Mortgage may refer to: Mortgageloan,aloansecuredbyamortgageonrealproperty Mortgage,asecurityinterestonrealpropertygrantedtoalender,asinmortgagelaw Deed,themortgagedocument Hypothec,a speciesofencumbrance

AnAssignmentofmortgageiswhenabankorlender transferstheoriginalloanormortga

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Published by: Nikki D White on Jul 20, 2011
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Disclaimer:Thisguideisintended togiveyouabackgroundregardingsecuritizationandsecuritizationaudits.Itshouldnotbe construedas legaladviceinanywayshapeorform.Ifyouseeklegaladvice,pleaseseekalawyer.

AssignmentofMortgageGuide

Mortgagemay referto: Mortgageloan,aloansecuredbyamortgageonrealproperty Mortgage,asecurityinterestonrealpropertygrantedtoalender,asinmortgagelaw Deed,themortgagedocument Hypothec,a speciesofencumbrance

AnAssignmentofmortgageiswhenabankorlender transferstheoriginalloanormortgagetoathirdparty. Basicallytransferringthemortgageloansomewhereelse. Assignmentofmortgagestypicallyoccurwhen mortgagesaresoldtootherlendersorbanks.Assumable mortgagesarealsoassignedwhensomeonetransfersthe mortgagetosomeoneelse. Theimportantpointtorememberisthatmanylenders andbankswhentransferringorsellingthemortgagesto thirdparties,arenotrequiredtonotifythehomeowners

thatthemortgageloanhasbeensoldtoathirdparty. Theybasicallyjustsendoutanotificationafterthesale hastakenplacealready.
CHAPTER701 ASSIGNMENTANDCANCELLATIONOFMORTGAGES 701.01 Assignment. 701.02 Assignmentnoteffectualagainstcreditorsunlessrecordedandindicatedintitleof document;applicability. 701.03 Cancellation. 701.04 Cancellationofmortgages,liens,andjudgments. 701.041 Titleinsurer;mortgagereleasecertificate. 701.06 Certaincancellationsandsatisfactionsofmortgagesvalidated. 701.01 Assignment.±Anymortgageemayassignandtransferanymortgagemadetoherorhim, andthepersontowhomanymortgagemay beassignedortransferredmayalsoassignand transferit,andthatpersonorherorhisassignsorsubsequentassigneesmaylawfullyhave,take andpursuethe samemeansandremedieswhichthemortgageemay lawfullyhave,takeorpursue for theforeclosureofamortgageandfortherecoveryofthemoneysecuredthereby.
History.±s.1,Dec.11,1834;RS1985;GS2498;RGS3840;CGL5743;s.782,ch.97-102.

701.02 Assignmentnoteffectualagainstcreditorsunlessrecordedandindicatedintitleof document;applicability.± (1) Anassignmentofamortgageuponrealpropertyorofanyinteresttherein,isnotgoodor effectualinlaworequity,againstcreditorsorsubsequentpurchasers,foravaluable consideration,andwithoutnotice,unlesstheassignmentiscontainedinadocumentthat,inits title,indicatesanassignmentofmortgageandisrecordedaccordingtolaw. (2) Thissectionalsoappliestoassignmentsofmortgagesresultingfromtransfersofallorany partor partsofthedebt,noteornotessecuredby mortgage,andnoneofsameis effectualinlaw orinequityagainstcreditorsorsubsequentpurchasersforavaluableconsiderationwithout notice,unlessa duly executedassignmentberecordedaccordingtolaw.

(3) Any assignmentofamortgage,dulyexecutedandrecordedaccording tolaw,purportingto assigntheprincipalofthemortgagedebtorthe unpaidbalanceofsuchprincipal,shall,asagainst subsequentpurchasersandcreditorsforvalueandwithoutnotice,beheldanddeemedtoassign anyandallaccruedandunpaidinterestsecuredby suchmortgage,unlesssuchinterestis specificallyandaffirmativelyreservedinsuchanassignmentbytheassignor,andareservation ofsuchinterestoranypartthereofmay not beimplied. (4) Notwithstandingsubsections(1),(2),and(3)governingtheassignmentofmortgages, chapters670-680oftheUniformCommercialCodeofthisstategoverntheattachmentand perfectionofasecurityinterestinamortgageuponrealpropertyandinapromissorynoteor otherrighttopaymentorperformancesecuredby thatmortgage.Theassignmentofsucha mortgageneednotberecordedunderthissectionforpurposesofattachmentorperfectionofa securityinterestinthemortgageundertheUniformCommercialCode. (5) Notwithstandingsubsection(4),acreditororsubsequentpurchaserofrealpropertyorany interesttherein,forvaluableconsiderationandwithoutnotice,isentitledtorely onafullor partialrelease,discharge,consent,joinder,subordination,satisfaction,orassignmentofa mortgageuponsuchpropertymadeby themortgageeofrecord,withoutregardtothefilingof anyUniformCommercialCodefinancingstatementthatpurportstoperfectasecurityinterestin themortgageorinapromissorynoteor otherrighttopaymentorperformancesecuredbythe mortgage,andthefilingofanysuchfinancingstatementdoesnotconstitutenoticeforthe purposesofthissection.Forthepurposesofthissubsection,theterm³mortgageeofrecord´ meansthepersonnamedasthemortgageeintherecordedmortgageor,if anassignmentofthe mortgagehasbeenrecordedinaccordancewiththissection,theterm³mortgageeofrecord´ meanstheassigneenamedintherecordedassignment.
History.±s.1,ch.6909,1915;RGS3841;CGL5744;s.13,ch.20954,1941;s.2,ch.89-41;s. 20,ch.2005-241.

701.03 Cancellation.±Wheneverthe amountofmoneydueonanymortgageshallbefully paid, themortgageeor assigneeshallwithin60daysthereaftercancelthesameinthemannerprovided bylaw.
History.±RS1986;GS2499;RGS3842;CGL5745;s.171,ch.73-333.

701.04 Cancellationofmortgages,liens,andjudgments.± (1) Within14daysafterreceiptofthewrittenrequestofamortgagor,theholderofamortgage shalldelivertothemortgagorata placedesignatedinthewrittenrequestanestoppelletter settingforththeunpaidprincipalbalance,interestdue,andtheperdiemrate.Wheneverthe amountofmoneydueonanymortgage,lien,orjudgmentshallbefully paidtothepersonor partyentitledtothepaymentthereof,themortgagee,creditor,orassignee,ortheattorneyof recordinthecaseofajudgment,towhomsuchpaymentshallhavebeenmade,shallexecutein writinganinstrumentacknowledgingsatisfactionofsaidmortgage,lien,orjudgmentandhave thesameacknowledged,or proven,anddulyenteredofrecordinthebookprovidedbylawfor suchpurposesinthepropercounty.Within60daysofthedateofreceiptofthefullpaymentof themortgage,lien,orjudgment,the personrequiredtoacknowledgesatisfactionofthe mortgage,lien,orjudgmentshallsendorcausetobesenttherecordedsatisfactiontotheperson

whohasmadethefullpayment.Inthecaseofacivilactionarisingoutoftheprovisionsofthis section,theprevailingpartyshallbeentitledtoattorney¶sfeesandcosts. (2) Whenevera writofexecutionhasbeenissued,docketed,andindexedwitha sheriffandthe judgmentuponwhichitwasissuedhasbeenfully paid,itshallbetheresponsibilityof theparty receivingpaymenttorequest,inwriting,addressedtothesheriff,returnofthewritof execution asfully satisfied.
History.±s.1,ch.4138,1893;s.1,ch.4918,1901;GS2500;RGS3843;CGL5746;s.1,ch.80-17;s.15,ch.93250;s.12,ch.94-170.

701.041 Titleinsurer;mortgagereleasecertificate.± (1) DEFINITIONS.±Forpurposesofthissection: (a) ´Mortgage´meansamortgageormortgagelienonaninterestinrealpropertyinthisstate, includinganymodificationsthereof,giventosecurealoaninthe principalamountof$500,000 orless,otherthanamortgagesecuringanopen-endor revolvingcreditagreement. (b) ´Mortgagee´means: 1. Thegranteeofamortgage;or 2. Ifamortgagehasbeenassignedofrecord,thelastpersontowhomthemortgagehasbeen assignedofrecord. (c) ´Mortgageservicer´meansthelastpersontowhomamortgagororthemortgagor¶s successorininteresthasbeeninstructedby amortgageetosendpaymentsonaloansecuredbya mortgage.Apersontransmittingapayoffstatementisthemortgageservicerfor themortgage describedinthepaymentstatement. (d) ´Mortgagor´meansthegrantorofamortgage. (e) ´Payoffstatement´meansastatementoftheamountof: 1. Theunpaidbalanceofaloansecuredbyamortgage,includingprincipal,interest,andany otherchargesproperlydueunderorsecuredbythemortgage. 2. Interestonaper-daybasisfor theunpaidbalance. (f) ´Record´meanstorecordwiththeclerkofthecircuitcourtorthecomptrollerinthecounty orcountiesinwhichtherealpropertysecuringthemortgageislocated. (g) ´Titleinsurer´meansacorporationor otherbusinessentityauthorizedandlicensedto transactthebusinessofinsuringtitlestointerestsinrealpropertyinthisstateunderchapter624.

(2) CERTIFICATEOFRELEASE.±Anofficerorduly appointedagentofatitleinsurermay,on behalfofamortgagorora personwhoacquiredfromthemortgagortitletoallora partofthe propertydescribedinamortgage,executeacertificateofreleasethatcomplieswiththe requirementsofthissectionandrecordthecertificateofreleaseintherealpropertyrecordsof eachcountyinwhichthemortgageisrecordedifasatisfactionorreleaseofthemortgagehasnot beenexecutedandrecordedafterthedatepaymentinfulloftheloansecuredbythemortgage wasmadeinaccordancewitha payoffstatementfurnishedby themortgageeorthemortgage servicer. (3) CONTENTS.±Acertificateofreleaseexecutedunderthissectionmustcontain: (a) Thenameofthemortgagor,thenameofthe originalmortgagee,and,ifapplicable,the mortgageservicer;thedateofthemortgage;the dateof recording;andthevolumeandpageor documentnumberintherealpropertyrecordsinwhichthemortgageisrecorded,togetherwith similarinformationforthelastrecordedassignmentofthemortgage. (b) Astatementthatthemortgage,includinganymodificationsthereof,wasintheprincipal amountof$500,000orless. (c) Thenameofthetitleinsurerfilingthecertificateofrelease,astatementthattheperson executingthecertificateofreleaseisanofficeroradulyappointedagentofthetitleinsurer,a statementthatthetitleinsurerisauthorizedandlicensedtotransactthebusinessofinsuringtitles tointerestsinrealpropertyinthisstateunderchapter624orchapter626,and,ifexecutedbya duly appointedagent,shallfurtherprovidetherecordinginformationoftheappointmentofsuch agentasrequiredbysubsection(4). (d) Astatementthatthecertificateof releaseismadeonbehalfofthemortgagororaperson whoacquiredtitlefromthemortgagortoallora partofthepropertydescribedinthemortgage. (e) Astatementthatthemortgageeormortgageservicerprovidedapayoffstatementwhichwas usedtomakepaymentinfulloftheunpaidbalanceoftheloansecuredbythemortgage. (f) Astatementthatpaymentinfulloftheunpaidbalanceoftheloansecuredbythemortgage wasmadeinaccordancewiththepayoffstatementandthatacopy ofthecertificateofrelease wassenttothemortgageeormortgageservicerthatprovidedthepayoffstatement. (4) EXECUTION.± (a) Acertificateofreleaseauthorizedbysubsection(2)mustbedulyexecuted,sworntoor affirmedunderpenalty of perjurybeforea notarypublic,andrecordedandmay beexecutedby anofficerofatitleinsurerorbya duly appointedagentofatitleinsurer.Suchdelegationtoan agentbyatitleinsurershallnotrelievethetitleinsurerofanyliabilityfordamagescausedbythe agentfortheexecutionorrecordationofacertificateofrelease. (b) Theappointmentofanagentmustbeduly executed,acknowledged,andrecordedbyan officerofatitleinsurerandmuststate:

1. Thetitleinsurerastheprincipal. 2. Theidentityoftheperson,partnership,orcorporationauthorizedtoactas agenttoexecute andrecordcertificatesofreleaseprovidedforinthissectiononbehalfofthetitleinsurer. 3. Thattheagenthasthefullauthoritytoexecuteandrecordcertificatesofreleaseprovidedfor inthissectiononbehalfofthetitleinsurer. (c) Aseparateappointmentofagentshallnotbenecessaryforeachcertificateofrelease providedthatatleastonesuchappointmentisrecordedinthecountyinwhichthemortgaged propertyislocated.Theappointmentofagentmustbererecordedwherenecessarytoestablish authorityoftheagent,butsuchauthorityshallcontinueuntilarevocationofappointmentis recordedintheofficeofthecountyrecorderinwhichtheappointmentofagentwasrecorded. (d) Afterrecordationofatitleinsurer¶srevocationofappointmentinthe officeofthecounty recorderinwhichtheappointmentwasrecorded,theagentwhoseappointmentisrevokedin suchcountyshallhavenofurtherauthoritytoexecuteor recordcertificatesof releaseas providedinthissectiononbehalfofthattitleinsurerwithrespecttoanymortgagesrecordedin thatcounty,andnosuchcertificateof releasethereafterexecutedorrecordedbythatagenton behalfofthattitleinsurershallbeeffectivetoreleaseanymortgagerecordedinthatcounty. (5) EFFECT.±Forpurposesofreleasingthemortgage,acertificateofreleasecontainingthe informationandstatementsprovidedfor insubsection(3)andexecutedasprovidedinsubsection (4) isentitledtoberecordedwiththecountyrecorderandoperatesasareleaseofthemortgage describedinthecertificateofrelease.Thecountyrecordershallrely uponthecertificateto releasethemortgage.Recordingofacertificateofreleaseby atitleinsureroritsagentshallnot relievethemortgagor,orthemortgagor¶ssuccessorsorassigns,fromanypersonalliabilityon theloanor otherobligationssecuredbythemortgage.A certificateof releaserecordedpursuant tothissectionfulfillsany otherobligationofthemortgageeormortgageservicertofilea satisfactionorreleaseofthemortgage. (6) LIABILITYOF TITLEINSURER.± (a) Inadditiontoanyotherremedyprovidedbylaw,atitleinsurerrecordingacertificateof releaseunderthissectionshallbeliabletotheholderoftheobligationsecuredbythemortgage foractualdamagesustainedduetotherecordingofthecertificateofrelease.Reasonablecosts andattorneys¶feesshallbeawardedtotheprevailingparty. (b) Thetitleinsurernamedinacertificateofreleasefiledbyaduly appointedagentshallbe liablepursuanttothissubsectionwithoutregardtowhetherthetitleinsurerauthorizedthe specificcertificateofreleaserecordedbytheagent. (c) Thetitleinsurershallhavenoliabilityunderthissubsectionifthetitleinsurershowsthat paymentinfulloftheunpaidbalanceoftheloansecuredbythemortgagewasmadein accordancewiththepayoffstatementfurnishedby themortgageeorthemortgageservicer.

(d) Liabilityofatitleinsurerpursuanttothissectionshallbeconsideredtobeatitleinsurance claimonrealpropertyinthisstatepursuanttos.627.7865. (7) RECORDING.±Ifamortgageisrecordedinmorethanonecountyandacertificateof releaseisrecordedinoneofsuchcounties,acertifiedcopy ofthecertificateofreleasemay be recordedinanotherofsuchcountieswiththesameeffectastheoriginal.Inallcases,the certificateofreleaseshallbeenteredandindexedassatisfactionsofmortgageareenteredand indexed. (8) APPLICATION.±Thissectionappliesonly toamortgage,includingany modificationsof suchmortgage,intheprincipalamountof$500,000orless. (9) PREMIUM.±TheFinancialServicesCommissionshalladoptrulesestablishingan actuariallysoundpremiumchargetobemadeforeachcertificateof releaserecordedpursuantto thissection.
History.±s.1,ch.2005-122.

701.06 Certaincancellationsandsatisfactionsofmortgagesvalidated.±Allcancellationsor satisfactionsofmortgagesmadepriortotheenactmentofchapter4138,Actsof 1893,bythe mortgageeorassigneeofrecordofsuchmortgageenteringsameonthemarginoftherecordof suchmortgageinthepresenceofthecustodianofsuchrecordandattestedbythesaidcustodian andsignedbysaidmortgageeorassigneeofrecordofsuchmortgage,shallbevalidandeffectual foreverypurposeasif thesamehadbeendonesubsequenttotheenactmentofchapter4138, Actsof1893.
History.±s.1,ch.14763,1931;CGL1936Supp.5746(1).

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