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SPONSOR: |
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DATE TYPED: |
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HB |
826 |
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SHORT TITLE: |
Full Satisfaction of Real Estate Debt |
SB |
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ANALYST: |
Gilbert |
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APPROPRIATION
Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
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FY03 |
FY04 |
FY03 |
FY04 |
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NFI |
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(Parenthesis
( ) Indicate Expenditure Decreases)
LFC Files
Regulation and Licensing Department (RLD)
SUMMARY
Synopsis
of Bill
House Bill 826 permits title insurers to file real estate mortgage or deed of trust releases. Within ten days of the date of recording, title insurers must mail notice of intent to record to the mortgagee, the trustee and beneficiary of the deed of trust, or to the assignee of record of the debt or evidence of debt.
Significant
Issues
This bill increases the liability of title insurers by making them liable to mortgagees or beneficiaries of deeds of trust for damages, including attorney fees, that mortgagees or beneficiaries of deeds of trust may sustain by reason of wrongful recording of a release of mortgage or deed of trust.
RELATIONSHIP
This bill relates to NMSA 1978, § 48-7-4, which pertains to the release of mortgages.
TECHNICAL ISSUES
The Regulation and Licensing Department (RLD)
Financial Institutions Division recommends the following technical changes to
this bill:
q
Page
1, line 25; insert the words “a mortgage,” at the beginning of line 25, so the
line reads: “a mortgage, a deed of trust or the assignee of record of the debt
or”.
Page
2, section (D) line 13 insert “a mortgage or” before “deed of trust”, so the
line will read: “any mortgagee or
beneficiary of a mortgage or a deed of trust for damages”.
Page
2 section (D) line 16 insert “mortgage or a” at the beginning of line 16, so
the line reads: “mortgage or a deed of trust may sustain by reason of the
wrongful recording”
RLG/prr