§ 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 days after receipt of a written or telefaxed request, the exact payoff due the lender on the loan;
Notwithstanding the foregoing, if the payoff is requested for a loan that is forty-five (45) days or more delinquent in payment thereof or for any equity line of credit, the payoff shall be provided within five (5) business days of said request. Nothing contained herein shall prevent the institution from providing the exact payoff sooner than the deadline set forth herein;
Notwithstanding the foregoing, nonamortizing loans made by Rhode Island housing and mortgage finance corporation for the purpose of providing closing cost or down-payment assistance shall not be subject to the provisions of this section;
(2) Permit the payoff to be made to it or, in the case of a mortgage 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 place of business located in this state;
(3) Accept as final interest due the lender on this payoff the interest calculated as of the business day full payment is made to the lending institution or servicing agent; and
(4) Issue or provide to the mortgagor, or his or her agent or real estate closing officer, a discharge of the mortgage securing the loan within thirty (30) days after full payment of the payoff and final interest by separate instrument of release of the mortgage or as provided in § 34-26-3.
(b) “Payoff statement” means any statement produced by a lending institution or servicer of a mortgage setting forth the amount of the unpaid balance on said mortgage loan, including principal, interest, and other charges 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.
(c) Notwithstanding the provisions of any law or regulation to the contrary, if a settlement agent complies with all of the terms of a payoff statement from the lending institution or servicer then the settlement agent shall not be responsible for any shortfall in the amount due to the mortgagee to pay off the mortgage loan in full. The settlement agent shall not be liable for any interest on funds tendered to said lending institution or servicer beyond the date that said funds were received by said lending institution or servicer even if said funds were insufficient to pay off the full balance of the mortgage loan.
History of Section.P.L. 1995, ch. 82, § 47; P.L. 2004, ch. 172, § 1; P.L. 2004, ch. 403, § 1.
Structure Rhode Island General Laws
Title 19 - Financial Institutions
Chapter 19-9 - Community Obligations and Banking Offenses
Section 19-9-1. - Definitions.
Section 19-9-2. - Escrow accounts — Interest.
Section 19-9-2.1. - Mortgage billing — Payment allocation.
Section 19-9-3. - Mortgages — Appraisal fees.
Section 19-9-3.1. - Mortgage loan appraisers — Relationship with lending institution.
Section 19-9-4. - Credit needs of local communities.
Section 19-9-5. - Mortgagor to be offered title insurance.
Section 19-9-6. - Lending institutions — Title attorney.
Section 19-9-7. - Attorney’s opinions.
Section 19-9-8. - Lending institutions — Negative amortization loans.
Section 19-9-9. - Mortgages issued — Payoffs.
Section 19-9-10. - Disbursement requirements — Purchase money loans — Dwellings.
Section 19-9-11. - Control of deposits by minors.
Section 19-9-12. - Trust deposits — Death of trustee.
Section 19-9-13. - Checks of trustees.
Section 19-9-14. - Deposits payable to survivor.
Section 19-9-14.1. - Uniform multiple-person accounts.
Section 19-9-15. - Pledge of passbook accounts.
Section 19-9-16. - Replacement of lost or destroyed passbook.
Section 19-9-17. - Charge-free savings accounts for minors.
Section 19-9-18. - Depositor identification.
Section 19-9-19. - Checks on consumer deposit accounts to show date account was opened.
Section 19-9-20. - Withdrawal from time deposit accounts.
Section 19-9-21. - Passbook savings accounts — Service charge prohibited.
Section 19-9-21.1. - Fee disclosure by banks, credit unions and other financial institutions.
Section 19-9-22. - Violations by officers and employees.
Section 19-9-24. - Fraudulent checks — Small amounts.
Section 19-9-25. - Fraudulent checks — Large amounts.
Section 19-9-26. - Prima facie evidence of intent to defraud — Prosecutions.
Section 19-9-27. - Check kiting.
Section 19-9-28. - False statement to obtain loan.
Section 19-9-29. - Bank fraud.
Section 19-9-30. - Injunctions against fraud.
Section 19-9-31. - False rumors as to condition of regulated institution.
Section 19-9-32. - Disclosure of arson conviction.
Section 19-9-33. - Severability.
Section 19-9-34. - Property insurance.
Section 19-9-35. - Consumer privacy in mortgage applications.