LRB-2737/1
MJL:lmk:ch
2005 - 2006 LEGISLATURE
March 9, 2006 - Introduced by Representative Cullen, cosponsored by Senator
Risser. Referred to Committee on Financial Institutions.
AB1100,1,3
1An Act to repeal 706.05 (8) to (10) (c);
to renumber 706.05 (10) (d); and
to
2create 706.054 of the statutes;
relating to: the Uniform Residential Mortgage
3Satisfaction Act.
Analysis by the Legislative Reference Bureau
Under current law, generally a mortgage-holder (mortgagee) must execute and
record a full satisfaction of a mortgage within 30 days after the date on which the
mortgagor completes full performance of the terms of the mortgage. A mortgagee
must record a mortgage satisfaction within seven days after the mortgagor
completes full performance and the mortgagee receives by certified mail a written
request from the mortgagor for a full satisfaction. A mortgagee who fails to respond
to this written request is liable to the mortgagor for damages of $100 for each day that
the violation remains uncorrected, up to a total of $2,000, plus actual damages
resulting from the violation.
This bill repeals these provisions and replaces them with the Uniform
Residential Mortgage Satisfaction Act (URMSA), whose most significant provisions
include the following:
1) A requirement that once the mortgagee has received full payment of a
mortgage loan, the mortgagor has 30 days to prepare and submit for recording a
satisfaction document. No notification to the mortgagee is necessary to trigger this
30-day period. If the mortgagee fails to submit the satisfaction document within this
period, the mortgagee is generally liable for any actual damages proximately caused
by its failure. URMSA also specifies the minimal amount of information necessary
for a satisfaction to be recorded.
2) URMSA imposes an affirmative duty on a mortgagee to provide a payoff
statement within 10 days of a proper request, specifies the minimal content for a
payoff-statement, and clarifies the persons that may request a payoff statement.
URMSA also provides that a mortgagee that issues a payoff statement that contains
an erroneous payoff amount may not enforce a mortgage against a person who has
reasonably and detrimentally relied upon the erroneous payoff amount.
3) URMSA allows a satisfaction agent to prepare and record on behalf of the
mortgagor an affidavit of satisfaction for a residential mortgage but only after first
giving notice to the mortgagee and giving the mortgagee 30 days to record a
satisfaction or object that the secured obligation remains unsatisfied. If the
mortgagee raises a timely objection, this option is not available, but if the mortgagee
fails to raise a timely objection, the satisfaction agent may generally record an
affidavit of satisfaction, which constitutes a satisfaction of the mortgage.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB1100, s. 1
1Section
1. 706.05 (8) to (10) (c) of the statutes are repealed.
AB1100, s. 2
2Section
2. 706.05 (10) (d) of the statutes is renumbered 706.05 (10m).
AB1100, s. 3
3Section
3. 706.054 of the statutes is created to read:
AB1100,2,5
4706.054 Uniform Residential Mortgage Satisfaction Act.
(1) 5Definitions. In this section:
AB1100,2,106
(a) "Address for giving a notification" means, for the purpose of a particular
7type of notification, the most recent address provided in a document by the intended
8recipient of the notification to the person giving the notification, unless the person
9giving the notification knows of a more accurate address, in which case the term
10means that address.
AB1100,2,1111
(b) "Day" means calendar day.
AB1100,2,1312
(c) "Document" means information that is inscribed on a tangible medium or
13that is stored in an electronic or other medium and is retrievable in perceivable form.
AB1100,2,1514
(d) "Electronic" means relating to technology having electrical, digital,
15magnetic, wireless, optical, electromagnetic, or similar capabilities.
AB1100,3,3
1(e) "Entitled person" means a person liable for payment or performance of the
2obligation secured by the real property described in a security instrument, or the
3landowner.
AB1100,3,54
(f) "Good faith" means honesty in fact and the observance of reasonable
5commercial standards of fair dealing.
AB1100,3,86
(g) "Landowner" means a person that, before foreclosure, has the right of
7redemption in the real property described in a security instrument. The term does
8not include a person that holds only a lien on the real property.
AB1100,3,109
(h) "Notification" means a document containing information required under
10this section and signed by the person required to provide the information.
AB1100,3,1111
(i) "Payoff amount" means the sum necessary to satisfy a secured obligation.
AB1100,3,1312
(j) "Payoff statement" means a document containing the information specified
13in sub. (4) (d).
AB1100,3,1514
(k) "Recording data" means the volume and page that indicate where a
15document is recorded in the office of the register of deeds.
AB1100,3,1816
(L) "Residential real property" means real property located in this state which
17is used primarily for personal, family, or household purposes and is improved by one
18to 4 dwelling units.
AB1100,3,2019
(m) "Satisfaction agent" means a title insurance company or an attorney who
20is licensed to practice in this state and in good standing.
AB1100,3,2521
(n) "Secured creditor" means a person that holds or is the beneficiary of a
22security interest or that is authorized both to receive payments on behalf of a person
23that holds a security interest and to record a satisfaction of the security instrument
24upon receiving full performance of the secured obligation. The term does not include
25a trustee under a security instrument.
AB1100,4,2
1(o) "Secured obligation" means an obligation the payment or performance of
2which is secured by a security interest.
AB1100,4,63
(p) "Security instrument" means an agreement, however denominated, that
4creates or provides for an interest in residential real property to secure payment or
5performance of an obligation, whether or not it also creates or provides for a lien on
6personal property.
AB1100,4,87
(q) "Security interest" means an interest in residential real property created
8by a security instrument.
AB1100,4,119
(r) "Sign" means, with present intent to authenticate or adopt a document, to
10execute or adopt a tangible symbol or to attach to or logically associate with the
11document an electronic sound, symbol, or process.
AB1100,4,1412
(s) "State" means a state of the United States, the District of Columbia, Puerto
13Rico, the United States Virgin Islands, or any territory or insular possession subject
14to the jurisdiction of the United States.
AB1100,4,1715
(t) "Submit for recording" means to deliver, with required fees and taxes, a
16document sufficient to be recorded under this section, to the appropriate office of the
17register of deeds.
AB1100,4,19
18(2) Notification; manner of giving and effective date. (a) A person gives a
19notification by doing any of the following:
AB1100,4,2220
1. Depositing it with the United States Postal Service with 1st class postage
21paid or with a commercially reasonable delivery service with cost of delivery
22provided, properly addressed to the recipient's address for giving a notification.
AB1100,4,2523
2. Sending it by facsimile transmission, electronic mail, or other electronic
24transmission to the recipient's address for giving a notification, but only if the
25recipient agreed to receive notification in that manner.
AB1100,5,2
13. Causing it to be received at the address for giving a notification within the
2time that it would have been received if given pursuant to subd. 1.
AB1100,5,33
(b) A notification is effective:
AB1100,5,54
1. The day after it is deposited with a commercially reasonable delivery service
5for overnight delivery.
AB1100,5,86
2. Three days after it is deposited with the United States Postal Service, 1st
7class mail with postage prepaid, or with a commercially reasonable delivery service
8for delivery other than by overnight delivery.
AB1100,5,99
3. The day it is given, if given pursuant to par. (a) 2.
AB1100,5,1110
4. The day it is received, if given by a method other than as provided in par. (a)
111. or 2.
AB1100,5,1612
(c) If this section or a notification given pursuant to this section requires
13performance on or by a certain day and that day is a Saturday, Sunday, or legal
14holiday under the laws of this state or the United States, the performance is
15sufficient if performed on the next day that is not a Saturday, Sunday, or legal
16holiday.
AB1100,5,21
17(3) Document of rescission; effect; liability for wrongful recording. (a) In
18this subsection, "document of rescission" means a document stating that an
19identified satisfaction or affidavit of satisfaction of a security instrument was
20recorded erroneously, the secured obligation remains unsatisfied, and the security
21instrument remains in force.
AB1100,5,2522
(b) If a person records a satisfaction or affidavit of satisfaction of a security
23instrument in error, the person may execute and record a document of rescission.
24Upon recording, the document rescinds an erroneously recorded satisfaction or
25affidavit.
AB1100,6,2
1(c) A recorded document of rescission has no effect on the rights of any of the
2following:
AB1100,6,53
1. A person that acquired an interest in the real property described in a security
4instrument after the recording of the satisfaction or affidavit of satisfaction of the
5security instrument and before the recording of the document of rescission.
AB1100,6,76
2. A person that would otherwise have priority over or take free of the lien
7created by the security instrument under this chapter.
AB1100,6,108
(d) A person that erroneously or wrongfully records a document of rescission
9is liable to any person injured thereby for the actual damages caused by the recording
10and reasonable attorney's fees and costs.
AB1100,6,15
11(4) Payoff statement; request and content. (a) An entitled person, or an agent
12authorized by an entitled person to request a payoff statement, may give to the
13secured creditor a notification requesting a payoff statement for a specified payoff
14date not more than 30 days after the notification is given. The notification must
15contain all of the following:
AB1100,6,1616
1. The entitled person's name.