Sec. 49-8a. Release of mortgage. Affidavit. Recording of affidavit with town clerk. Penalty for recording false information.
Sec. 49-8a. Release of mortgage. Affidavit. Recording of affidavit with town
clerk. Penalty for recording false information. (a) For the purposes of this section
and section 49-10a:
(1) "Mortgage loan" means a loan secured by a mortgage on one, two, three or four
family residential real property located in this state, including, but not limited to, a
residential unit in any common interest community, as defined in section 47-202.
(2) "Person" means an individual, corporation, limited liability company, business
trust, estate, trust, partnership, association, joint venture, government, governmental
subdivision or agency, or other legal or commercial entity.
(3) "Mortgagor" means the grantor of a mortgage.
(4) "Mortgagee" means the grantee of a mortgage; provided, if the mortgage has
been assigned of record, "mortgagee" means the last person to whom the mortgage has
been assigned of record; and provided further, if the mortgage has been serviced by a
mortgage servicer, "mortgagee" means the mortgage servicer.
(5) "Mortgage servicer" means the last person to whom the mortgagor has been
instructed by the mortgagee to send payments of the mortgage loan. The person who
has transmitted a payoff statement shall be deemed to be the mortgage servicer with
respect to the mortgage loan described in that payoff statement.
(6) "Attorney-at-law" means any person admitted to practice law in this state and
in good standing.
(7) "Title insurance company" means any corporation or other business entity authorized and licensed to transact the business of insuring titles to interests in real property
in this state.
(8) "Institutional payor" means any bank or lending institution that, as part of making a new mortgage loan, pays off the previous mortgage loan.
(9) "Payoff statement" means a statement of the amount of the unpaid balance on
a mortgage loan, including principal, interest and other charges properly assessed pursuant to the loan documentation of such mortgage and a statement of the interest on a per
diem basis with respect to the unpaid principal balance of the mortgage loan.
(b) If a mortgagee fails to execute and deliver a release of mortgage to the mortgagor
or to the mortgagor's designated agent within sixty days from receipt by the mortgagee
of payment of the mortgage loan (1) in accordance with the payoff statement furnished
by the mortgagee, or (2) if no payoff statement was provided pursuant to a request made
under section 49-10a, in accordance with a good faith estimate by the mortgagor of the
amount of the unpaid balance on the mortgage loan using (A) a statement from the
mortgagee indicating the outstanding balance due as of a date certain, and (B) a reasonable estimate of the per diem interest and other charges due, any attorney-at-law or duly
authorized officer of either a title insurance company or an institutional payor may, on
behalf of the mortgagor or any successor in interest to the mortgagor who has acquired
title to the premises described in the mortgage or any portion thereof, execute and cause
to be recorded in the land records of each town where the mortgage was recorded, an
affidavit which complies with the requirements of this section.
(c) An affidavit pursuant to this section shall state that:
(1) The affiant is an attorney-at-law or the authorized officer of a title insurance
company, and that the affidavit is made in behalf of and at the request of the mortgagor
or the current owner of the interest encumbered by the mortgage;
(2) The mortgagee has provided a payoff statement with respect to the mortgage
loan or the mortgagee has failed to provide a payoff statement requested pursuant to
section 49-10a;
(3) The affiant has ascertained that the mortgagee has received payment of the mortgage loan (A) in accordance with the payoff statement, or (B) in the absence of a payoff
statement requested pursuant to section 49-10a, in accordance with a good faith estimate
by the mortgagor of the amount of the unpaid balance on the mortgage loan calculated
in accordance with subdivision (2) of subsection (b) of this section, as evidenced by a
bank check, certified check, attorney's clients' funds account check or title insurance
company check, which has been negotiated by the mortgagee or by other documentary
evidence of such receipt of payment by the mortgagee, including a confirmation of a
wire transfer;
(4) More than sixty days have elapsed since payment was received by the mortgagee; and
(5) At least fifteen days prior to the date of the affidavit, the affiant has given the
mortgagee written notice by registered or certified mail, postage prepaid, return receipt
requested, of intention to execute and cause to be recorded an affidavit in accordance
with this section, with a copy of the proposed affidavit attached to such written notice;
and that the mortgagee has not responded in writing to such notification, or that any
request for additional payment made by the mortgagee has been complied with at least
fifteen days prior to the date of the affidavit.
(d) Such affidavit shall state the names of the mortgagor and the mortgagee, the
date of the mortgage, and the volume and page of the land records where the mortgage is
recorded. The affidavit shall provide similar information with respect to every recorded
assignment of the mortgage.
(e) The affiant shall attach to the affidavit (1) photostatic copies of the documentary
evidence that payment has been received by the mortgagee, including the mortgagee's
endorsement of any bank check, certified check, attorney's clients' funds account check,
title insurance company check, or confirmation of a wire transfer, and (2) (A) a photostatic copy of the payoff statement, or (B) in the absence of a payoff statement requested
pursuant to section 49-10a, a copy of a statement from the mortgagee that is in the
possession of the mortgagor indicating the outstanding balance due on the mortgage
loan as of a date certain and a statement setting out the mortgagor's basis for the estimate
of the amount due, and shall certify on each that it is a true copy of the original document.
(f) Such affidavit, when recorded, shall constitute a release of the lien of such mortgage or the property described therein.
(g) The town clerk shall index the affidavit in the name of the original mortgagee
and the last assignee of the mortgage appearing of record as the grantors, and in the
name of the mortgagors and the current record owner of the property as grantees.
(h) Any person who causes an affidavit to be recorded in the land records of any
town in accordance with this section having actual knowledge that the information and
statements therein contained are false shall be fined not more than five thousand dollars
or imprisoned not less than one year or more than five years, or both fined and imprisoned.
(P.A. 86-341, S. 1; P.A. 95-79, S. 173, 189; 95-102, S. 2; P.A. 03-19, S. 112; 03-196, S. 21.)
History: P.A. 95-79 amended Subsec. (a) to redefine "person" to include a limited liability company, effective May
31, 1995; P.A. 95-102 amended Subsec. (a) to replace definition of "mortgage" with "mortgage loan", amended Subsec.
(b) by changing time for release from 30 to 60 days and adding Subdiv. (2) re remedy if no payoff statement was provided
pursuant to request made under Sec. 49-10a, amended Subsec. (c) to include current owner of interest encumbered by
mortgage as person who may request affidavit, to include provision re failure to provide payoff statement requested pursuant
to Sec. 49-10a, to change time for release from 30 to 60 days and require that written notice by affiant be sent to mortgagee
by registered or certified mail, postage prepaid, return receipt requested, amended Subsec. (e) re requirements re affidavit
and amended Subsec. (h) changing "knowing" to "having actual knowledge that" and increasing penalty for false statements
from $500 to $5,000 or imprisonment of not less than one nor more than five years or both fine and imprisonment; P.A.
03-19 made technical changes in Subsecs. (a), (b), (c), (e) and (h), effective May 12, 2003; P.A. 03-196 amended Subsec.
(a) by defining "institutional payor" in new Subdiv. (8) and redesignating existing Subdiv. (8) as Subdiv. (9), and amended
Subsec. (b) by adding provisions re institutional payors and making technical changes, effective July 1, 2003.