Public Act 447 of 2004

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• Introduced by Rep. David Farhat (R) on June 10, 2003, to reduce from 90 days to seven days the time a mortgagee (the mortgage holder, including banks, mortgage companies, etc.) has to file a discharge of mortgage with the register of deeds. The bill would also increase from $100 to $1,000 the amount a mortgagee who fails to file a discharge within that time may be required to pay the borrower. Under current law, and under the bill, a mortgagee may also be required to pay to the borrower all other actual damages caused by the failure to provide a discharge as required.
  • Referred to the House Commerce Committee on June 10, 2003.
    • Reported in the House on June 22, 2004, with the recommendation that the substitute (H-1) be adopted and that the bill then pass.
    • Substitute offered in the House on July 14, 2004, to replace the previous version of the bill with one that does not require the mortgage discharge to be filed within seven days, but instead within 60 days (vs. 90 days in the current law). The substitute passed by voice vote in the House on July 14, 2004.
    • Amendment offered by Rep. David Farhat (R) on July 14, 2004, to clarify that the discharge is considered filed when it is recieved by the register of deeds, not when it is actually recorded. The amendment passed by voice vote in the House on July 14, 2004.
  • Amendment offered by Rep. Steve Tobocman (D) on July 14, 2004, to allow a borrower to also recover reasonable attorney fees and costs associated with bringing an action against a mortgagee who refuses or neglects to file the discharge of a mortgage within the time required under the law, in addition to the $1,000 fine proposed by the bill. The amendment failed by voice vote in the House on July 14, 2004.
• Passed 103 to 0 in the House on July 14, 2004, to reduce from 90 days to 60 days the time a mortgagee (the mortgage holder, including banks, mortgage companies, etc.) has to file a discharge of mortgage with the register of deeds. The bill would also increase from $100 to $1,000 the amount a mortgagee who fails to file a discharge within that time may be required to pay the borrower. Under current law, and under the bill, a mortgagee may also be required to pay to the borrower all other actual damages caused by the failure to provide a discharge as required.
  Who Voted "Yes" and Who Voted "No"
• Received in the Senate on August 4, 2004.
  • Referred to the Senate Banking and Financial Institutions Committee on August 4, 2004.
    • Reported in the Senate on December 7, 2004, with the recommendation that the bill pass.
• Passed 37 to 0 in the Senate on December 8, 2004, to reduce from 90 days to 60 days the time a mortgagee (the mortgage holder, including banks, mortgage companies, etc.) has to file a discharge of mortgage with the register of deeds. The bill would also increase from $100 to $1,000 the amount a mortgagee who fails to file a discharge within that time may be required to pay the borrower. Under current law, and under the bill, a mortgagee may also be required to pay to the borrower all other actual damages caused by the failure to provide a discharge as required.
  Who Voted "Yes" and Who Voted "No"
• Signed by Gov. Jennifer Granholm on December 21, 2004.