1 STATE OF OKLAHOMA
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2 2nd Session of the 59th Legislature (2024)
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3 HOUSE BILL 4151 By: Schreiber
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6 AS INTRODUCED
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7 An Act relating to insurance; amending 36 O.S. 2021,
7 Section 5008, which relates to release of mortgage
8 affidavit; providing that a title insurance company
8 may not charge a preemptive fee for the filing of a
9 release of mortgage affidavit under certain
9 circumstances; and providing an effective date.
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12 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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13 SECTION 1. AMENDATORY 36 O.S. 2021, Section 5008, is
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14 amended to read as follows:
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15 Section 5008. A. As used in this section:
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16 1. "Mortgage" means a contract lien on an interest in real
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17 property;
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18 2. "Mortgagee" means:
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19 a. the grantee of a mortgage,
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20 b. if a mortgage has been assigned of record, the last
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21 person or entity to whom the mortgage or judgment lien
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22 has been assigned of record, or
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23 c. if a mortgage is serviced by a mortgage servicer, the
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24 mortgage servicer;
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 1 3. "Mortgage servicer" means the last person or entity to whom
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2 a mortgagor has been instructed by a mortgagee to send payments for
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3 the loan secured by a mortgage or judgment lien. A person or entity
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4 transmitting a payoff statement is considered the mortgage servicer
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5 for the mortgage or judgment lien described in the payoff statement;
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6 4. "Mortgagor" means the grantor of a mortgage;
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7 5. "Payoff statement" means a statement of the amount of:
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8 a. the unpaid balance of a loan secured by a mortgage or
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9 judgment lien, including principal, interest, and
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10 other charges properly assessed under the loan
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11 documentation of the mortgage or judgment lien, and
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12 b. interest on a per diem basis for the unpaid balance;
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13 and
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14 6. "Title insurance company" means a corporation or other
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15 business entity authorized and licensed to transact business of
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16 insuring titles to interests in real property in this state.
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17 B. This section applies only to a mortgage or judgment lien on
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18 all real property including commercial or agriculture or a one- to
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19 four-family residence, including a residential unit in a condominium
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20 regime.
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21 C. If a mortgagee or judgment lienholder fails to execute and
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22 deliver a release of mortgage or judgment lien to the mortgagor or
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23 designated agent of the mortgagor within sixty (60) days after the
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24 date of receipt of payment of the mortgage by the mortgagee or
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 1 judgment lienholder in accordance with a payoff statement furnished
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2 by the mortgagee or judgment lienholder or its mortgage servicer, an
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3 authorized officer of a title insurance company or a duly appointed
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4 agent of the title insurance company, on behalf of the mortgagor or
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5 a transferee of the mortgagor who acquired title to the property
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6 described in the mortgage, may execute and record an affidavit in
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7 the real property records of each county in which the mortgage or
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8 judgment lien was recorded. The written signature of the agent of
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9 the title insurance company or attorney shall appear on the
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10 affidavit. An authorized officer of a title insurance company or a
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11 duly appointed agent of the title insurance company may not charge a
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12 preemptive fee for the filing of said affidavit as part of the same
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13 transaction in which the mortgage or judgment lien is being paid in
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14 accordance with a payoff statement furnished by the mortgagee or
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15 judgment lienholder.
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16 D. An affidavit executed under this section shall state that:
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17 1. The affiant is an authorized officer or a duly appointed
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18 agent of a title insurance company;
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19 2. The affidavit is made on behalf of the mortgagor or a
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20 transferee of the mortgagor who acquired title to the property
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21 described in the mortgage;
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22 3. The mortgagee or judgment lienholder provided a payoff
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23 statement with respect to the loan secured by the mortgage or
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24 judgment lien;
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 1 4. The affiant has ascertained that the mortgagee or judgment
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2 lienholder has received payment of the loan secured by the mortgage
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3 or judgment lien in accordance with the payoff statement, as
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4 evidenced by:
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5 a. a bank check, certified check, cashier's check, escrow
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6 account check from the title company or title
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7 insurance agent or attorney trust account check that
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8 has been negotiated by the mortgagee or judgment
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9 lienholder,
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10 b. wire transfer, or
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11 c. another documentary evidence of the receipt of payment
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12 by the mortgagee or judgment lienholder;
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13 5. More than sixty (60) days have elapsed since the date
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14 payment was received by the mortgagee or judgment lienholder;
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15 6. The title insurance company or its duly appointed agent has
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16 given the mortgagee or judgment lienholder at least fifteen (15)
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17 days' notice in writing by certified mail, return receipt requested,
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18 of its intention to execute and record an affidavit in accordance
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19 with this section, with a copy of the proposed affidavit attached to
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20 the written notice; and
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21 7. The mortgagee or judgment lienholder has not responded in
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22 writing to the notification at least fifteen (15) days before the
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23 affidavit is recorded.
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 1 E. The affidavit must include the names of the mortgagor and
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2 the mortgagee or judgment lienholder, the date of the mortgage, the
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3 legal description of the property, and the book and page or clerk's
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4 document number of the real property records where the mortgage or
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5 lien and/or modification is recorded, together with similar
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6 information for a recorded assignment of the mortgage or judgment
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7 lien.
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8 F. The affiant shall attach to the affidavit a photostatic
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9 copy, certified by the affiant as a true copy of the original
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10 document, of:
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11 1. The documentary evidence that payment has been received by
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12 the mortgagee or judgment lienholder, including the endorsement of
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13 the mortgagee or judgment lienholder of a negotiated check if paid
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14 by check or proof of a wire transfer if paid by wire. The bank
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15 account number and routing number on the check or proof of wire
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16 transfer may be redacted by the filer; and
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17 2. The payoff statement.
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18 G. An affidavit that is executed and recorded as provided by
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19 this section shall operate as a release of the mortgage or judgment
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20 lien described in the affidavit.
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21 H. The county clerk shall index the affidavit against the real
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22 property described in the mortgage or judgment lien and the
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23 affidavit.
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 1 I. A person who knowingly causes an affidavit with false
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2 information to be executed and recorded under this section is liable
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3 for the penalties for filing a false affidavit, including the
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4 penalties for commission of offenses pursuant to the appropriate
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5 section of the penal code, and to a party injured by the affidavit
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6 for actual damages of Five Thousand Dollars ($5,000.00), whichever
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7 is greater. The Attorney General may sue to collect the penalty.
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8 If the Attorney General or an injured party bringing suit
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9 substantially prevails in an action under this subsection, the court
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10 may award reasonable attorney fees and court costs to the prevailing
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11 party.
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12 J. Nothing provided for in this section shall preclude the
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13 mortgagor from availing itself of the remedies provided for in
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14 Section 15 of Title 46 of the Oklahoma Statutes which provides for
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15 penalties against the mortgagee or judgment lienholder for failure
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16 to release a mortgage or judgment lien pursuant to the payment in
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17 full and request for release on behalf of the mortgagor.
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18 SECTION 2. This act shall become effective November 1, 2024.
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20 59-2-9479 JL 12/29/23
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