RESOLUTION OF THE PHILADELPHIA BAR ASSOCIATION SUPPORTING PENNSYLVANIA SENATE BILL 14, PRINTER'S NO. 838, OR SIMILAR LEGISLATION, RELATING TO THE SATISFACTION OF CONSUMER AND OTHER MORTGAGES; PROVIDING FOR CERTAIN FORMS; AND MAKING REPEALS
WHEREAS, SB 14 creates the Mortgage Satisfaction Act that provides for a uniform procedure for satisfying mortgages to modernize present procedures and creates an alternative for satisfying mortgage records existing at the county level;
WHEREAS, currently, when a person(s) acquires a mortgage, the bank or lender files a lien against the property at the proper county office. That record remains until the mortgage is fully paid and satisfied. Once the mortgage is satisfied, the bank or lender officially removes the lien from the property. However, there have been occasions where banks or lenders have lost a property's record or have failed to remove the lien from a property which could hinder further business transactions involving the property. Parties could encounter further problems in selling a property because the title is "not clean" or due to the inability or difficulty of acquiring an additional loan or mortgage, as the record reflects that a previous lien was not cleared;
WHEREAS, SB 14 creates a uniform process for satisfying mortgages and further creates a uniform satisfaction statement and eliminates the requirement that the satisfaction statement be accompanied by the original mortgage. This bill amends certain laws that have been in place since the 18th century and modernizes language and clarifies definitions and procedures;
WHEREAS, SB 14 also requires the lender to file a satisfaction statement with the relevant county recording office within 45 days after the mortgage has been paid in full and further provides for penalties that allow the mortgagor to recover damages from the lender, not to exceed the amount of the mortgage plus attorneys' fees and costs in the event that the mortgagees failed to record the mortgage satisfaction notice;
WHEREAS, SB 14 only applies to consumer mortgages for one to four family properties or condominiums;
WHEREAS, SB 14 seeks to improve and modernize certain legal procedures relative to real property transactions and will have the positive effect of encouraging home ownership in the Commonwealth of Pennsylvania and more specifically, the City of Philadelphia;
NOW, THEREFORE, BE IT RESOLVED, that the Philadelphia Bar Association supports enactment of Senate Bill No.14, Printer's No. 838, or similar legislation and authorizes the Chancellor, or his designee, to take all necessary steps, including contacting the appropriate members of the Pennsylvania House of Representatives and Senate, regarding this Association's support for this or similar legislation.