I am with a small bank that portfolios most of the loans we originate. We can not get large investors to release mortgages in a timely fashion. Commercial Federal has claimed that a release could take 90 to 120 days. Chase is at least that long. This is just wrong. If you do not have the staff to handle ALL aspects of mortgage lending stay out of it. What can be done? Who will take on these giants. The consumer ultimately pays for this sloth.

While this sounds more like venting, I am interested in advice.

Isn't there some type of requirement to release mortgages within 90 days of payout?

We are having the same issues. I had to call a large lender about a loan that paid out 5 years ago that they hadn't released the mortgage on yet. Had to fill out forms, including all of the recording information, if I wanted it released within 30 days. If they had to do the research themselves they told me it would be a few months!!

It's usually a state law if there are any actual time limits. From my experience, Iowa is particularly consumer friendly and I would not be surprised if there is a requirement to have the release processed within a certain time frame. However, unless someone with a real stick is going to go after them for violating that provision, they will probably continue to do it.

Virginia enacted a law requiring release within 90 days of payoff in response to consumer complaints. Of course, it helped that one of the consumers complaining was a member of the Virginia Assembly.

Behavior like this is how we wound up with regs like Z, CC, RESPA, etc.