§ 19-9-9 - Mortgages issued – Payoffs.
SECTION 19-9-9
§ 19-9-9 Mortgages issued – Payoffs.– (a) Every lending institution or other entity that owns or services a loan,secured by a mortgage on property located in this state, shall:
(1) Provide to the obligor within three (3) business daysafter receipt of a written or telefaxed request, the exact payoff due thelender on the loan;
Notwithstanding the foregoing, if the payoff is requested fora loan that is forty-five (45) days or more delinquent in payment thereof orfor any equity line of credit, the payoff shall be provided within five (5)business days of said request. Nothing contained herein shall prevent theinstitution from providing the exact payoff sooner than the deadline set forthherein;
Notwithstanding the foregoing, nonamortizing loans made byRhode Island housing and mortgage finance corporation for the purpose ofproviding closing cost or down payment assistance shall not be subject to theprovisions of this section;
(2) Permit the payoff to be made to it or, in the case of amortgage owned or serviced by its subsidiary or affiliate or servicing agent,permit the payoff to be made at the subsidiary's or affiliate's principal placeof business located in this state;
(3) Accept as final interest due the lender on this payoffthe interest calculated as of the business day full payment is made to thelending institution or servicing agent; and
(4) Issue, or provide to the mortgagor or his or her agent orreal estate closing officer a discharge of the mortgage securing the loanwithin thirty (30) days after full payment of the payoff and final interest byseparate instrument of release of the mortgage or as provided in § 34-26-3.
(b) "Payoff statement" means any statement produced by alending institution or servicer of a mortgage setting forth the amount of theunpaid balance on said mortgage loan, including principal, interest and othercharges assessed pursuant to the loan documentation of such mortgage and astatement of the interest on a per diem basis with respect to the unpaidprincipal balance of the mortgage loan.
(c) Notwithstanding the provisions of any law or regulationto the contrary, if a settlement agent complies with all of the terms of apayoff statement from the lending institution or servicer then the settlementagent shall not be responsible for any shortfall in the amount due to themortgagee to pay off the mortgage loan in full. The settlement agent shall notbe liable for any interest on funds tendered to said lending institution orservicer beyond the date that said funds were received by said lendinginstitution or servicer even if said funds were insufficient to pay off thefull balance of the mortgage loan.