Scenario: Customer paid off mortgage. We did not release mortgage timely. Customer requested release via phone. Mortgage still didn't get released. Now we have an unhappy customer.

Should we have accepted a verbal request from the customer or must it be in writing? Where do I even begin to look? UCC, state law, HELP!

Your state's law probably define when a lien/mortgage needs to be released. This will generally be within X days and it may require that you release it by filing, or by providing documents necessary to do so to the borrower.

This is the code for Indiana. I agree with Andy, your state probably has a similar code.

Any owner, holder, or custodian of any mortgage or other recorded lien who fails, neglects, or refuses to release the debt after it has been fully paid within 15 days of receipt of a written demand, shall pay the mortgagor a sum not to exceed $500. The amount may be recovered by suit in any court of competent jurisdiction, together with costs and reasonable attorney’s fees. [Ind. Code 32-8-1-2.]

Thanks to those who answered. I have found the cite for Oklahoma from my state banking association. 46 O.S. 15 It is similar to Indiana, except we go 10 days and up to $100 per day. The mortgagor must make a WRITTEN request.

Also, if you used the secondary market standard mortgage instrument, one of the final paragraphs likely says the bank will promptly record and pay for the discharge. So it's a state law and contract issue.

What are the state compliance times for releasing liens once a loan is paid in full?

What state are you in?

Every state...is there a site I can visit to view all 50 state compliance time?