I located a very old law that indicates there is a 90 day requirement to prepare and file a discharge with the register of deeds. Is this still accurate?

Clearly, you have too much time on your hands...don't you have a HMDA report to prepare??

Do you have a citation for the old law? The only thing I'm coming up with relates to fees that may or may not be charged.

You would think I have all the time in the world... right? I was working on HMDA believe it or not and I was asked this question. So I always try to answer questions as fast as I can.

We have a lot of closed loan files that are pending for one reason or another. Obviously everyone is really busy with refi's. But trying to resolve the situation we find that they are pending due to not recieving final title policies. The title companies say it is due to discharges not being filed.

Our senior lender would like to cite the law in a letter sent with all payoff proceeds.

So... here I am! This is what I found through an advanced search on MCL. R.S. of 1846 Chapter 65 Section 565.41 Discharge of mortgage; payment of filing fee by mortgagee.

Thanks Bart!
Michelle

Unless Howard can fill in more blanks, I'd say you have the right citation. The Court of Appeals referred to this very section in Konynenbelt v Flagstar Bank, FSB in 242 Mich App 21. Here's a short summary:

Property - Mortgage - Discharge - Necessity

Within 90 days after a mortgage has been paid or otherwise satisfied and discharged, the mortgagee or his personal representative, successor or assign, must prepare and file a discharge of the mortgage with the register of deeds for the county in which the mortgaged property is located, and must pay the fee for recording the discharge.

MCL 565.41

Going from memory only here, but I'm pretty sure the standard Michigan Freddie / Fannie mortgage requires you to pay the discharge fee - I don't recall whether it specifies 90 days. Still, there's your timing.

By the way, I finished my HMDA report on Thursday. Now I'm doing CRA. You have SO MUCH to look forward to!

Thanks Bart! I know I can always count on you! I would like to say we're done with HMDA... maybe today. Yes... I do dread CRA reporting.

The law ( MCL 565.41 )still requires a discharge within 90 days of payoff, unless the borrower requests the discharge sooner. Then you have 7 days to deliver the discharge to the borrower. See MCL MCL 565.44 . At least the penalty is only $100 for failing to follow the law, not half of the loan amount.

Thanks Howard!