House Bill No. 5580
               House Bill No. 5580

               PUBLIC ACT NO. 98-49


AN   ACT  CONCERNING  THE  SIMPLIFICATION  OF  THE
MORTGAGE PAYOFF NOTICE PROCESS.


    Be  it  enacted  by  the  Senate  and House of
Representatives in General Assembly convened:
    Section  2  of  public  act 97-267 is repealed
and the following is substituted in lieu thereof:
    (a) For the purposes of this section:
    (1)  "DATE OF COMPLETION OF THE CLOSING" MEANS
THE DATE THAT PAYOFF FUNDS  BECOME  AVAILABLE  FOR
TRANSMITTAL TO THE MORTGAGE HOLDER.
    [(1)]  (2) "Notification agent" means: (A) The
buyer's attorney, where the buyer  is  represented
by  an attorney and the seller is represented by a
separate attorney who assumes  the  responsibility
for  transmitting the mortgage payoff funds to the
mortgage  holder;  (B)  the  new  lender,   in   a
refinance    situation    where    the    attorney
representing the mortgagor is  also  the  attorney
representing the new lender; (C) the seller, where
the seller is not represented by an  attorney  and
the  attorney representing the buyer has taken the
responsibility for transmitting the  payoff  funds
to  the  mortgage  holder;  or  (D)  the  seller's
attorney, where the  buyer  is  represented  by  a
separate  attorney  who assumes the responsibility
for disbursing the mortgage payoff  funds  to  the
mortgage holder;
    [(2)]  (3) "Mortgage holder" or "holder of the
mortgage" means the owner of the mortgage  or  the
mortgage  servicer  as  set  forth in the mortgage
payoff letter provided to the notification agent;
    [(3)]    (4)    "Residential    real    estate
transaction" means  any  real  estate  transaction
involving a one-to-four family dwelling.
    (b)    At    any   residential   real   estate
transaction involving the  payoff  of  a  mortgage
loan,  a disclosure statement shall be prepared by
the notification agent [and shall be  executed  by
all parties to the transaction or their attorneys]
and shall be sent by  the  notification  agent  by
certified  mail,  return  receipt  requested or by
CONFIRMED FACSIMILE TRANSMISSION OR  BY  overnight
carrier, to the holder of the mortgage which is to
be paid off, within two  business  days  from  the
date  of completion of the closing. The disclosure
statement shall  include  a  copy  of  the  payoff
statement  or other written authorization provided
by the mortgage [lender]  HOLDER.  The  person  or
entity charged with the responsibility of securing
the mortgage payoff  statement  shall  transmit  a
copy  of  such payoff statement in a timely manner
to the notification agent but, in any  event,  not
later  than the date of closing. To the extent not
shown on  the  payoff  statement,  the  disclosure
statement  shall  identify the mortgage, the names
of the mortgagors OR BORROWERS, the  loan  number,
the  property  address  and  the  date of [payoff]
COMPLETION  OF   THE   CLOSING.   The   disclosure
statement  shall  direct  that,  if  funds are not
received  by  the  mortgage  holder  within   five
business days from the date of [payoff] COMPLETION
OF THE CLOSING, notice of that fact shall be given
to  the  notification  agent. Such statement shall
include  the  name,  address,  telephone  and  fax
number,  if  available, of the notification agent.
Such disclosure statement may be in  substantially
the following form:

                   NOTIFICATION

Please    be   advised  that   a    loan      from
   (lender)       (mortgagor)
recorded  in the  land  records  in  the  town  of
(address)
payoff   statement,  was   paid   at  closing   on
[(payoff date)]  DATE OF COMPLETION OF THE CLOSING
If you do  not  receive  the mortgage payoff funds
within five business  days of the [payoff] date OF
COMPLETION OF THE  CLOSING,  you  are  directed to
notify this office immediately as follows:


Approved May 19, 1998