- August 15, 2013
- All Indiana Issuing Offices
- UNDERWRITING - Mortgage Releases
The purpose of this bulletin is to address mortgage releases in Indiana. Before you omit or remove an exception from a title insurance policy for a mortgage for which you have received funds to pay off, you must promptly remit such funds to the lender/servicer, as applicable.
Under Indiana Code 32-29-1-6, lenders are obligated to release a mortgage that has been paid in full and record an instrument in recordable form evidencing the satisfaction of a mortgage upon request by the borrower. In the event a mortgagee/lender does not file a release of mortgage of record for a mortgage that has been paid in full, a title company is authorized, but not required to file, a certificate of release of mortgage in accordance with the provisions of Indiana Code 32-29-6-1 et seq.
Indiana Code 32-29-6-9 provides that an officer or appointed agent of a title insurance company may execute and record a certificate of release for a mortgage that the title insurance company or its appointed agent paid off in full at closing. The ability of the title company to execute and record a certificate of release is subject to the following conditions:
1) A satisfaction or release of the mortgage has not been executed and recorded within sixty (60) days after the date payment in full of the loan secured by the mortgage was sent in accordance with a payoff statement furnished by the mortgagee or the mortgage servicer; and
2) the title insurance company, an officer of the title insurance company, or an agent of the title insurance company has sent to the last known address of the mortgagee or the mortgage servicer, at least thirty (30) days before executing the certificate of release, written notice of its intention to execute and record a certificate of release in accordance with this section after the expiration of the sixty (60) day period.
If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.
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THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.