Oklahoma Revises Mortgage Holder Release Requirements
By Brian Castine
Although multiple updates across various statutes occurred in Bill NO. 3201, the following pertains to mortgage holder release requirements.
The State of Oklahoma has reduced the number of days that the mortgagee is afforded to release a mortgage without incurring a penalty. The mortgage must now be released by the holder within 30 days once the debt has been secured. After the 30 day limit, the mortgagor may submit a request for the release of the mortgage after which the mortgagee will have ten days to comply. Failure to do so will result in a daily penalty, not to exceed $100.00.
Please see the excerpt below for further details.
- SECTION 19. AMENDATORY 46 O.S. 2011, Section 15, as amended by Section 1, Chapter 175, O.S.L. 2015 (46 O.S. Supp. 2015, Section 15), is amended to read as follows:
- Section 15. A. Any mortgage on real estate shall be released by the holder of any such mortgage within (30) days of the payment of the debt secured by the mortgage and the holder of the mortgage shall file the release of the mortgage with the county clerk where the mortgage is recorded. If, at the end of the thirty-day period, the holder has failed to release the mortgage, the mortgagor may at any time request in writing the holder of the mortgage to release the mortgage and the holder of the mortgage shall have ten (10) days from the date of the request to release such mortgage. If the holder of the mortgage fails to release the mortgage by the end of such ten-day period, the mortgage holder shall then forfeit and pay to the mortgagor a penalty of one percent (1%) of the principal debt not to exceed One Hundred Dollars ($100.00) per day each day the release is not recorded after the ten-day period has expired and the penalty shall be recovered in a civil action in any court having jurisdiction thereof, but the request for the release shall be in writing and describe the mortgage and premises with reasonable certainty. Provided that, the total penalty shall not exceed one hundred percent (100%) of the total principal debt.
- B. A title insurance company or its duly appointed agent may bring action on behalf of the mortgagor to recover the penalty described in subsection A of this section.
- C. For purposes of this section:
- 1. “Mortgagor” shall include any subsequent purchaser of the mortgaged real estate; and
- 2. “Title insurance company” shall mean a corporation or other business entity authorized and licensed to transact business of insuring titles to interests in real property in this state.
About the Author
Brian Castine is a Regulatory Compliance Consultant at Bankers Advisory. He is a graduate of the University of Wisconsin and served as a Petty Officer for the United States Navy. Brian can be reached at brian@bankersadvisory.com
Anna DeSimone founded Bankers Advisory in 1986 and is a nationally recognized authority in residential mortgage lending. She has received numerous industry awards and has authored more than 40 best practices guides and hundreds of articles.
Comments are closed.