We have been informed today by two County Clerk offices that they will no longer allow mortgages to be re-filed. (If you are wondering "why?", although not common, mortgages are occasionally re-filed in order to correct an error on the original mortgage.)

Can anyone else verify/refute this news for Kentucky?

I suspect in this very hectic market that there may be a certain amount of re-recording being done to correct errors. That said, I wonder what else was said by the clerks in the notifications you mentioned other than we won't allow re-filing. Can you provide more information as to the text of the notifications?

All I have is (second hand)verbal information. Our loan operations guru is attempting to gather written documentation of this information, but she is working on that. I was hoping that someone else might have heard the same thing. And, I'm sure that the low rates have led to many re-recordings. Even if there are only errors on 1% of the mortgages, the increased number of mortgages has surely increased the number of errors, and I might guess that the increased volume could have even increased the percentage of errors.

I can confirm this. Stewart Title Company has memos from several county clerks on this indicating they will not allow a correction to the original filed copy. Apparently lawyers that close a lot of loans are getting two copies of the mortgage signed so if there is something wrong they can correct it on the other one (still defeats the purpose of the borrower knowing about the changes).

yes, we rec'd info to that effect beginning with the metro areas and now in other counties. I havn't had time to research the KRS, but would presume they are technically correct.
Our counsel recommended an E&O agreement. You can have the borrower sign a backup mtg, but are you going to alter it after the fact?

what counties does this affect as of now. I am in central Ky and haven't heard of this as of yet...

Jefferson and Fayette thus far. You may want your counsel to review OAG 81-322. Also, we are checking into a Mortgage of Correction; similar to a Deed of Correction. This would still require the borrowers to re-sign.

The problem with recording a new mortgage is you will have two releases to file at satisfaction, whereas the Correction would not. Also, if you have assigned the Mtg, the Correction would be "cleaner" than possibly having to file a new Assignment of Mtg, also.

I would be receptive to any ideas or suggestions.