NH Amends Discharge of Mortgage by Affidavit Requirements

By Margaret Wright, J.D.
The New Hampshire state legislature has recently amended the requirements of 224:1 Mortgages of Realty; Discharge by Affidavit (RSA:7-a Discharge by Affidavit) and 224:2 Penalty for Failure to Timely Discharge a Mortgage (RSA 479:8 Penalty). These amendments are effective January 1, 2016.
RSA 479:8 has been amended to include a penalty provision where a mortgagor may collect damages from a mortgagee who has not caused to be recorded a discharge as required by RSA 479:7, Discharge; Record.
Within 60 days of satisfaction of mortgage a mortgagee must record a discharge in the registry of deeds where the mortgaged property is located. Per the recent amendment, the failure of the mortgagee to timely record the discharge may now result in liability “for damages to the mortgagor at the rate of $200 for each week after the expiration of the 60 days up to a maximum of $2,500 or in an amount equal to the loss sustained as a result of the failure of the mortgagee to execute and deliver a release, whichever is greater, plus costs and reasonable attorney’s fees.”
RSA:7-a has been revised to outline the requirements and circumstances under which a mortgage may be discharged by affidavit. Where a mortgagee has failed to record a discharge of the mortgage within 60 days of satisfaction the mortgagor, the mortgagor’s executor, administrator, assignee, transferee, or other successor in title; or the mortgagee of the mortgagor’s transferee or other successor in title may execute and record an affidavit which “shall constitute a discharge of the mortgage and a release of the lien created by the mortgage on the mortgaged premises.”
The affidavit must include a statement that the mortgagee provided a payoff statement and that the mortgagee received full payment in accordance with the statement, evidence of which the affiant has in their possession. Additionally it must include “the names and addresses of both the mortgagor and the mortgagee, the date of the mortgage, and the title reference.”
Prior to executing a discharge affidavit it must be more than 60 days since the mortgagee received payment. The affiant must also provide written notice to the mortgagee at least 15 days prior to recording the affidavit. The 15 day written notice must be sent to the last known address of the mortgagee, include a copy of the proposed affidavit and a statement that “the mortgagee has not delivered a discharge in response to such notification and the mortgagor has complied with any request made by the mortgagee for additional payment at least 15 days prior to the date of the affidavit.
Additionally, a $5,000 fine shall be assessed against any person who records a discharge affidavit that includes information and statements that they know to be false.

Tags: New Hampshire, Mortgage Servicing, State Mortgage Compliance | Comments Off on NH Amends Discharge of Mortgage by Affidavit Requirements

Margaret Wright, JD, is regulatory compliance director with CLA. She is a graduate of Stonehill College and earned her juris doctor at Suffolk University Law School. She is admitted to the Massachusetts Bar.

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Residential Mortgage Compliance Monitor is an educational resource for financial institutions, providing announcements, legislative summaries, and policy changes issued by state and national regulators. Announcements also cover mortgage lending rules of HUD, Fannie Mae, Freddie Mac, and other mortgage agencies.