Last year, Ohio enacted a new law with implications for anyone involved in a mortgage – lenders and borrowers. This new regulation, referred to as House Bill 201 as it moved through the House and Senate, may change the way mortgages are processed at the time of pay-off.
If you are a lender or bank, this law affects you because you must release the mortgage within a set timeline. Aronoff, Rosen & Hunt can help assure your satisfactions or releases of mortgage are recorded right away.
If you are an owner, we can help you if your mortgage is not released in a timely manner.
Here are five things you should pay attention to:
- House Bill 201 requires timely release of mortgages
The basic premise of this law is that lenders must record the release of a mortgage within 90 days of the mortgage payoff. That means if you’re a lender or working with property lending at all, you need to move quickly to record these documents.
- Law goes into effect March 23
It’s time to pay attention to this new law. It goes into effect at the end of next month and carries the full force of timelines and fines beginning then.
- Applies to Commercial Property, too
The law includes all mortgages, commercial and residential. So if your company is working in either arena, it’s important to pay attention to the timelines in the bill.
- Fines and Fees
Non-compliance with these new rules can be costly. Potential damages in a civil action can be up to $250. You’re also subject to a fine of $50 per day for noncompliance. Plus, if the person paying off the mortgage has to hire an attorney to resolve the issue, you’ll be responsible for their attorney fees.
- Act Quickly
In addition to the implications for future mortgage releases, you may also want to review your old pay-offs. If you’re involved with a current paid-off mortgage that you haven’t yet recorded a release, the law could affect you as well. You have to notify the property owner that you haven’t released their mortgage yet and then within 60 days get it resolved. The bill includes a 180-day timeframe from when the bill goes into effect for you to act.
Contact your attorneys at Aronoff, Rosen & Hunt to discuss how we can assist you in being in compliance with the new law.