This bill modifies existing provisions related to mortgage payment satisfaction in Minnesota. It amends Minnesota Statutes 2024, section 47.208, subdivision 1, to require that within 45 days of receiving full payment or performance of the loan secured by a mortgage, a mortgagee or mortgage servicer must issue and submit a satisfaction of mortgage to the county recorder or registrar of titles. Additionally, a new subdivision is added to address situations where a payoff statement may be understated. It allows mortgagees or servicers to send corrected payoff statements and protects individuals who rely on the original understated amounts from being denied accuracy claims.

Furthermore, the bill amends section 507.41 to establish that if a mortgagee fails to discharge the mortgage within 45 days after receiving full payment or performance, they may be liable for actual damages incurred. The previous requirement for a request and tender of reasonable charges is removed, streamlining the process for borrowers seeking satisfaction of their mortgage. Overall, these changes aim to enhance clarity and accountability in mortgage transactions, ensuring timely discharge of mortgages and protecting borrowers' rights.

Statutes affected:
Introduction: 47.208, 507.41