SENATE BILL REPORT

SB 6865

BYSenator McCaslin

Penalizing nonacknowledgement of mortgage satisfaction.

Senate Committee on Financial Institutions & Insurance

Senate Hearing Date(s):February 2, 1990

Majority Report:     Do pass.

     Signed by Senators von Reichbauer, Chairman; Johnson, Vice Chairman; Fleming, McCaslin, McMullen, Matson, Moore, Sellar, Smitherman.

Senate Staff:Benson Porter (786-7470)

                February 2, 1990

AS REPORTED BY COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE, FEBRUARY 2, 1990

BACKGROUND:

Current state law requires a mortgagee to execute a notice acknowledging satisfaction of a mortgage if requested by an interested party.  Such acknowledgement must be executed within 60 days of the request and may be recorded in the county where the mortgaged property is located upon request.  If a mortgagee fails to provide acknowledgement of satisfaction, a mortgagor may collect his or her damages and reasonable attorneys' fees.

SUMMARY:

A mortgagee is required to execute an acknowledgement of mortgage satisfaction within 30 days from the date the amount due on the mortgage is received.  In addition, if the acknowledgement is not received within 30 days, the mortgagor may collect the greater of his or her damages or $100 per each business day the acknowledgement is delinquent.  The mortgagor also may continue to collect reasonable attorneys' fees.

Appropriation:  none

Revenue:   none

Fiscal Note:    none requested

Senate Committee - Testified:   Larry Shannon, WA Mortgage Bankers Association