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Mortgage Discharge Technical Amendments Statute PDF Print E-mail
On August 9, 2010, Governor Patrick signed into law the attached Chapter 282 of the Acts of 2010.  This amends and clarifies the Mortgage Discharge Law, Chapter 63 of the Acts of 2006.
These amendments provide as follows:

1)     Sections 1 and 5 expand the definition of "Mortgagee" to include successors in interest to the original mortgagee and provide for reliance on outside records to conclusively identify them.

2)     Section 2 clarifies what most acknowledge has been the most difficult issue in applying Chapter 63 in practice.  It broadens the scope of transactions in which there is the presumption of the authority of individuals executing documents. Those who sign documents in the capacities as listed in the statute will bind a lender, mortgage servicer, foreclosing mortgagee, or parties acting on their behalf by virtue of a recorded power of attorney, without requiring a vote or incumbency certificate.  These new provisions also apply to individuals who are executing documents on behalf of foreclosing mortgagees. We believe they also apply to REO sales, as long as the grantor in the REO deed is the same entity as the foreclosing mortgage.

3)     Section 6 enables a BFP, or an heir, successor or assign thereof, to bring an action to clear title after 1 year from the due date of the mortgage, as the mortgagor has already been permitted to do.

4)     Section 7 provides, "This act shall apply to mortgages and other documents or instruments referred to herein, whether recorded before, on or after the effective date hereof."
Please call our underwriters if you have questions about specific transactions you are involved with
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