Florida Amends Procedures for Cancellation of Mortgage after Satisfaction and Open End Mortgages
Florida Amends Procedures for Cancellation of Mortgage after Satisfaction and Open End Mortgages
By Robert Harrison, J.D.
Florida House Bill 145 Section 4 has amended Section 701.03 of Florida Statutes, to reduce the time limit for a mortgagee to cancel a mortgage after satisfaction from 60 to 45 days, unless the mortgage is an open end mortgage.
Open End Mortgage
An open end mortgage is a mortgage that can increase, at the request of the borrower to the lender, over the life of the loan, as long as certain conditions are met. Typically there is a maximum dollar amount that can be borrowed. In order to cancel an open end mortgage the borrower must provide written notice of the intent to close the mortgage. Within 45 days after receiving the written notice from the borrower the mortgagee will cancel the open end mortgage.
These provisions are effective on July 1, 2016. Open end mortgages existing before July 1, 2016 are not subject to these new provisions so long as cancellation procedures are contained in the loan agreements for those mortgages.
About the Author
Robert Harrison, J.D. is a Regulatory Compliance Consultant at Bankers Advisory. He is a graduate of Boston University and earned his Juris Doctor at the Boston University School of Law. Robert is admitted to the Bar in Massachusetts. He can be reached at robert.harrison@bankersadvisory.com
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