Bulletin: AR2015001

Date:
April 28, 2015
To:
All Arkansas Issuing Offices
RE:
UNDERWRITING - Satisfaction Affidavits

Dear Associates:

Effective April 1, 2015, Arkansas Code §18-40-104 was amended to provide for release of a mortgage by a title agent for a title company by an affidavit.   

A lender has 60 days after it has received payment of the debt to provide a satisfaction of a mortgage or conveyance of property encumbered by a deed of trust, upon request for the satisfaction. It is important to note that that the satisfaction or reconveyance must be requested before the 60 days begins to run.

If the lender fails to provide the satisfaction (or reconveyance) within that 60 days, a title agent for a title company that tendered the funds to the lender may complete and file an affidavit in substantially the form as the statutory form (included with this bulletin as Exhibit A, below). The affidavit must be recorded in the county(ies) in which the property is located.

Other parties that can sign the affidavit are:

1. The attorney who prepared the original mortgage or deed of trust.

2. The attorney who represents the lender or loan servicer.

If a title agent for a title company licensed as a Stewart agent executes and files the statutory affidavit, the Stewart agent may consider the mortgage or deed of trust  to be satisfied and need not show it as an exception on a commitment or policy issued on behalf of Stewart Title Guaranty Company. Please note that in executing the affidavit, the title agent and  title company are acting on their  own behalf and not as an agent of Stewart Title Guaranty Company.    

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.

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.

EXHIBIT A
 
SATISFACTION AFFIDAVIT

            KNOW ALL PERSONS BY THESE PRESENTS that:      

I, [Name of Affiant], am the [Attorney for the Mortgagor or  Employee of a Title Company that Tendered the Satisfaction on Behalf of the  Mortgagor]. [Name of  Mortgagor) mortgaged certain real property to [ Name of Mortgagee] to secure the original principal indebtedness of  [ Amount of Indebtedness ] which was evidenced by that certain [ Nam e of Instrument ] recorded on [ Date] in the real property records of [ Name of County]   County , Arkansas as [ Instrument Number or Book and Page].

            On [ Date] , [ Name of Mortgagor] tendered to [ Name of Mortgagee] the sum of [ Amount of Satisfaction] , which sum represents the full satisfaction  of the amount due on the [ Name of Instrument] .      [Name of Mortgagor] requested from [Name of Mortgagee] an acknowledgment of satisfaction on       [Date].    More   than sixty (60) days have elapsed since the request of the Acknowledgement of satisfaction.

Further affiant sayeth naught.

WITNESS my    hand     and       seal on this       day of  20__.

[Signature]

Name printed :

 

ACKNOWLEDGMENT

STATE OF        l

COUNTY OF     l

            On this day of   day of  , before me,      a Notary Public  in and for the said county and   state, personally appeared , to me well known, and acknowledged that [ he/ s he] had executed the foregoing document for the consideration, uses, and   purposes therein mentioned and set forth .

IN WITNESS WHEREOF, I hereunto set my hand and official seal.

 

 

Notary Public

My Commission Expires: 

 

References

Bulletins Replaced:
None
Related Bulletins:
None
Underwriting Manual:
12.28 Mortgages
 
17.24 Releases
Exceptions Manual:
None
Forms:
None