Misstatement in written payoff statement
Sec. 13. A creditor or mortgage servicer may not withhold the
release of a mortgage if the written mortgage payoff statement
misstates the amount of the payoff and the written payoff is relied
upon in good faith by an independent closing agent without
knowledge of the misstatement. It is not a misstatement if the written
payoff statement is not accurate as a result of a change in
circumstances occurring after the issuance of the payoff statement.
The release of a mortgage does not affect the ability of the creditor
or mortgage servicer to collect the full amount owed without regard
to a misstatement in the written payoff statement and a release of the
mortgage.
As added by P.L.2-2002, SEC.14.
Last modified: May 24, 2006