Industry Alert on Mortgage Loan Satisfaction

Department of Financial Institutions

ALERT BULLETIN

Timely Satisfaction of Paid Off Mortgages

Wisconsin Department of Financial Institutions is reminding mortgage lenders that Wisconsin Statues require that paid off mortgages be satisfied in a timely manner, and the Wisconsin Legislature has provided stiff penalties for failure to do so.

Specifically, the statutes provide that a mortgage-holder shall execute and record a proper full satisfaction of a mortgage, together with any instruments required to establish of record the right of the mortgagor to satisfy the mortgage, within 30 days after the date on which the mortgagor completes full performance of the conditions of the mortgage.

Statutes also provide that a mortgage-holder shall execute and record a mortgage satisfaction as required within 7 days after both the mortgagor completes full performance and the mortgage-holder receives by certified mail a written request from the mortgagor for a full satisfaction.

A person who violates these sections may be liable to the mortgagor for penalty damages of $100 for each day that the violation remains uncorrected, up to a total of $2,000.00, plus actual damages resulting from the violation.

Failure to satisfy paid off mortgages is damaging to the consumers of Wisconsin and is a major concern to the Department of Financial Institutions. This ALERT BULLETIN issued in cooperation with the Wisconsin Association of Mortgage Brokers, the Wisconsin Mortgage Bankers Association, the Wisconsin Realtors Association and the Wisconsin Land Title Association to protect the consumers of the State of Wisconsin.