92nd General Assembly
Summary of HB2207
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House Sponsors:
BUGIELSKI-COWLISHAW-BLACK-MATHIAS.

Senate Sponsors:
WALSH,T

Short description: 
MORTGAGE CERT OF RELEASE ACT                                               

Synopsis of Bill as introduced:
        Creates the Mortgage Certificate of Release Act.   Provides  that      
   an  officer  or duly appointed agent of a title insurance company may,      
   on behalf of a mortgagor or a specified person, execute a  certificate      
   of  release  and  record the certificate of release with the recorder,      
   with certain restrictions.  Provides that a certificate of release and      
   the appointment of an agent must  be executed,  acknowledged,  and          
   provide certain information.  Provides that, for purposes of releasing      
   the  mortgage,  a  certificate  of  release  containing  the  required      
   information  and  statements  and  properly  executed  is  prima facie      
   evidence of the facts contained therein, is entitled  to  be  recorded      
   with the recorder, and operates as a release of the mortgage described      
   in  the  certificate  of  release.   Provides  that  a title insurance      
   company recording a certificate of release that has  actual  knowledge      
   that  the  information  and  statements contained therein are false is      
   liable to the mortgagee for actual damages sustained.                       
        HOUSE AMENDMENT NO. 1.                                                 
          Adds reference to:                                                   
          765 ILCS 905/2                  from Ch. 95, par. 52                 
        Deletes  everything.   Reinserts  the  bill  as  introduced  with      
   changes.   Limits  the  definition  of  mortgage  to  an  interest  in      
   "one-to-four family residential" real property and provides that trust      
   deeds  are  not  included.  Requires written payoff statements. In the      
   title insurance provisions, changes  "agent"  to  "agent  or  agents".      
   Amends  the  Mortgage Act to provide that mortgages may be released of      
   record as provided in the Mortgage Certificate of Release Act.              
        SENATE AMENDMENT NO. 1. (Senate recedes May 21, 2002)                  
        Provides that a notice of intention  to  file  a  certificate  of      
   release must state that if the mortgagee or mortgage servicer does not      
   provide notice to the title insurance company or title insurance agent      
   that  the  amount received for a payoff was inadequate, within 60 days      
   of the receipt of payoff of  the  loan  secured  by  the  mortgage,  a      
   certificate  of  release  will  be  delivered  for  recording   to the      
   recorder of each county in which the mortgage  is  recorded.  Provides      
   that  a  title insurance company may create an instrument, executed by      
   an officer of that company and acknowledged in the same  manner  as  a      
   deed,  appointing  one  or  more  title insurance agents authorized to      
   issue  certificates of release under  this  Act.   Provides  that  the      
   instrument shall designate the county or counties in which it is to be      
   effective  and  shall  be  recorded with the recorder in each of those      
   counties, either as an original instrument  or  by  recording  a  copy      
   certified by the recorder of one of the counties.                           
        SENATE AMENDMENT NO. 2. (Senate recedes May 21, 2002)                  
          Deletes reference to:                                                
          765 ILCS 905/2                  from Ch. 95, par. 52                 
        Deletes everything.  Creates the Mortgage Certificate of  Release      
   Act.  Contains a short title provision only.                                
        CONFERENCE COMMITTEE REPORT NO. 1.                                     
        Recommends that the Senate recede from S-ams 1 and 2.                  
        Recommends that the bill be further amended as follows:                
          Adds reference to:                                                   
          765 ILCS 905/2                  from Ch. 95, par. 52                 
        Deletes  everything  after  the  enacting  clause.  Reinserts the      
   provisions of the bill as amended by the House with  several  changes.      
   Provides  for  a standard notice of intention to file a certificate of      
   release form.  Provides that the Mortgage Certificate of  Release  Act      
   is  repealed  on  January  1,  2004.  Provides  that a title insurance      
   company may create an instrument executed by an officer of the company      
   and acknowledged in the same manner as a deed, appointing one or  more      
   title  insurance  agents,  authorized to issue certificates of release      
   under the Mortgage Certificate of  Release  Act.   Provides  that  the      
   notice  of intention to file a certificate of release shall state that      
   if the title insurance company  or  title  insurance  agent  does  not      
   receive  from the mortgagee or mortgage servicer or their successor in      
   interest either a release or a written objection to the issuance of  a      
   certificate of release, a certificate of release will be delivered for      
   recording  to  the  recorder  of  each county in which the mortgage is      
   recorded. Provides that the notice of intention shall include  a  copy      
   of  the closing statement or HUD-1 form and the payoff check or a copy      
   of it, or copy of the wire transfer order.  Provides that  the  notice      
   of  intention  to  file  a  certificate  of  release  shall be sent by      
   certified mail, return receipt requested, with postage prepaid, or  by      
   other receipted delivery service no sooner than the day of closing and      
   no  later  than  30  days  after receipt of payment. Provides that the      
   notice shall be delivered to the location  identified  in  the  payoff      
   statement  or  as  otherwise  directed  in writing by the mortgagee or      
   mortgage servicer  or  their  successor  in  interest.  Provides  that      
   within  90  days  after  receipt  of the notice of intention to file a      
   certificate of release, the mortgagee or mortgage  servicer  or  their      
   successor  in interest may issue a release or may object in writing to      
   the issuance of a certificate  of  release,  and  by  doing  so  shall      
   prevent  the  title  insurance  company  or title insurance agent from      
   executing and recording  a  certificate  of  release  under  the  Act.      
   Effective immediately.                                                      
 
Last action on Bill: PUBLIC ACT.............................. 92-0765

   Last action date: AUG-06-2002

           Location: House

 Amendments to Bill: AMENDMENTS ADOPTED: HOUSE -   1     SENATE -   2


   END OF INQUIRY 
                                                                               



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