The Nebraska Legislature passed a bill that would change provisions relating to the recording of instruments and the rights and duties of secured creditors with respect to the Residential Mortgage Licensing Act, real estate conveyances, mortgages, trust deeds and the Nebraska Security Instrument Satisfaction Act. The bill has been presented for the governor’s signature.
The bill, LB 750, was introduced by Sen. Matt Williams of Gothenburg.
Section 76-252 and Section 76-1014.01 would each be amended to state that Section 76-2803 shall govern the mortgagee’s or beneficiary’s obligation to record or cause to be recorded a release of mortgage and the liability of the mortgagee or beneficiary for failure to timely record or cause to be recorded a release of mortgage or deed of reconveyance.
It would amend Section 76-2803 to read, “A secured creditor shall, after the secured creditor receives full payment or performance of the secured obligation and receives a written request by the trustor, mortgagor or grantor, as applicable, or the trustor’s, mortgagor’s or grantor’s successor in interest or designated representative or by the holder of a junior trust deed, junior mortgage or other junior security interest, record or cause to be recorded a deed of reconveaynce or a release or satisfaction of a mortgage or other security instrument, as applicable, in the real property records of each county in which the trust deed, mortgage or other security instrument, as applicable, secures a line of credit or future advances, the secured obligation is fully paid or performed if, in addition to full payment or performance, the secured creditor has received a written notification from the obligor or obligors under a line of credit requesting the secured creditor to terminate the lien of credit or the secured creditor has received a written notice sufficient to terminate the effectiveness of the provision for future advances.”
It further states, “A secured creditor who fails to record or cause to be recorded a deed of reconveyance or a release or satisfaction of mortgage or other security instrument within 60 days after receiving full payment or performance of the secured obligation and receiving a written request as required under [the provisions] of this section is liable to (a) the trustor, mortgagor or grantor, or the successor in interest of such trustor, mortgagor or grantor, as applicable, if such written request was made by such trustor, mortgagor or grantor, or a designated representative of such trustor, mortgagor or grantor, for the greater of $5,000 or actual damages caused by such failure, plus reasonable attorney’s fees and costs or (b) a successor in interest of the trustor, mortgagor or grantor or of a landowner, purchaser or holder of a junior trust deed, junior mortgage or other junior security interest, as applicable, if such written request was made by such successor in interest of the trustor, mortgagor or grantor, or by such landowner, purchaser or holder of a junior trust deed, junior mortgage or other junior security interest, for actual damages caused by such failure plus reasonable attorney’s fees and costs. The court may further order the trustee to reconvey the property or the mortgagee or grantee to record a release or satisfaction of the mortgage or other security instrument. This subsection does not apply if the secured creditor received full payment or performance before the effective date of this act.”
It further states, “a beneficiary under a deed of trust shall not be liable under this section if the beneficiary (a) satisfied the conditions set forth [in the statute] and (b) delivered to the trustee under such deed of trust a written request to execute a deed of reconveyance and the trustee failed to execute such deed of reconveyance, provided that the beneficiary delivered such request within the time provided herein for recording of a deed of reconveyance and the beneficiary subsequently appointed a successor trustee who executed and recorded or caused to be recorded a deed of reconveyance within a reasonable time thereafter.”
Successor in interest would include the current owner of the property and the person issuing a payoff check in accordance with the terms of a payoff letter from a beneficiary or mortgagee.