(1)A creditor or mortgage servicer shall
provide, in writing, an accurate payoff amount for a first lien mortgage
transaction to the debtor not later than seven (7) business days
(excluding legal public holidays, Saturdays, and Sundays) after the
creditor or mortgage servicer receives the debtor's written request for
the accurate payoff amount. A payoff statement provided by a creditor
or mortgage servicer under this subsection must show the date the
statement was prepared and itemize the unpaid principal balance and
each fee, charge, or other sum included within the payoff amount. A
creditor or mortgage servicer who fails to provide an accurate payoff
amount is liable for:
(a)one hundred dollars ($100) if an accurate payoff amount is not
provided by the creditor or mortgage servicer not
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(1) A creditor or mortgage servicer shall
provide, in writing, an accurate payoff amount for a first lien mortgage
transaction to the debtor not later than seven (7) business days
(excluding legal public holidays, Saturdays, and Sundays) after the
creditor or mortgage servicer receives the debtor's written request for
the accurate payoff amount. A payoff statement provided by a creditor
or mortgage servicer under this subsection must show the date the
statement was prepared and itemize the unpaid principal balance and
each fee, charge, or other sum included within the payoff amount. A
creditor or mortgage servicer who fails to provide an accurate payoff
amount is liable for:
(a) one hundred dollars ($100) if an accurate payoff amount is not
provided by the creditor or mortgage servicer not later than seven
(7) business days (excluding legal public holidays, Saturdays, and
Sundays) after the creditor or mortgage servicer receives the
debtor's first written request; and
(b) the greater of:
(i) one hundred dollars ($100); or
(ii) the loan finance charge that accrues on the first lien
mortgage transaction from the date the creditor or mortgage
servicer receives the first written request until the date on
which the accurate payoff amount is provided;
if an accurate payoff amount is not provided by the creditor or
mortgage servicer not later than seven (7) business days
(excluding legal public holidays, Saturdays, and Sundays) after
the creditor or mortgage servicer receives the debtor's second
written request, and the creditor or mortgage servicer fails to
comply with subdivision (a).
(2) This subsection applies to a first lien mortgage transaction, or
the refinancing or consolidation of a first lien mortgage transaction,
that:
(a) is closed after June 30, 2009; and
(b) has an interest rate that is subject to change at one (1) or more
times during the term of the first lien mortgage transaction.
A creditor in a transaction to which this subsection applies may not
contract for and may not charge the debtor a prepayment fee or penalty.
(3) This subsection applies to a first lien mortgage transaction with
respect to which any installment or minimum payment due is
delinquent for at least sixty (60) days. The creditor, servicer, or the
creditor's agent shall acknowledge a written offer made in connection
with a proposed short sale not later than five (5) business days
(excluding legal public holidays, Saturdays, and Sundays) after the date
of the offer if the offer complies with the requirements for a qualified
written request set forth in 12 U.S.C. 2605(e)(1)(B). The creditor,
servicer, or creditor's agent is required to acknowledge a written offer
made in connection with a proposed short sale from a third party acting
on behalf of the debtor only if the debtor has provided written
authorization for the creditor, servicer, or creditor's agent to do so. Not
later than thirty (30) business days (excluding legal public holidays,
Saturdays, and Sundays) after receipt of an offer under this subsection,
the creditor, servicer, or creditor's agent shall respond to the offer with
an acceptance or a rejection of the offer. The thirty (30) day period
described in this subsection may be extended for not more than fifteen
(15) business days (excluding legal public holidays, Saturdays, and
Sundays) if, before the end of the thirty (30) day period, the creditor,
the servicer, or the creditor's agent notifies the debtor of the extension
and the reason the extension is needed. Payment accepted by a creditor,
servicer, or creditor's agent in connection with a short sale constitutes
payment in full satisfaction of the first lien mortgage transaction unless
the creditor, servicer, or creditor's agent obtains:
(a) the following statement: "The debtor remains liable for any
amount still owed under the first lien mortgage transaction."; or
(b) a statement substantially similar to the statement set forth in
subdivision (a);
acknowledged by the initials or signature of the debtor, on or before the
date on which the short sale payment is accepted. As used in this
subsection, "short sale" means a transaction in which the property that
is the subject of a first lien mortgage transaction is sold for an amount
that is less than the amount of the debtor's outstanding obligation under
the first lien mortgage transaction. A creditor or mortgage servicer that
fails to respond to an offer within the time prescribed by this subsection
is liable in accordance with 12 U.S.C. 2605(f) in any action brought
under that section.
(4) This section is not intended to provide the owner of real estate
subject to the issuance of process under a judgment or decree of
foreclosure any protection or defense against a deficiency judgment for
purposes of the borrower protections from liability that must be
disclosed under 12 CFR 1026.38(p)(3) on the form required by 12 CFR
1026.38 ("Closing Disclosures" form under the Amendments to the
2013 Integrated Mortgage Disclosures Rule Under the Real Estate
Settlement Procedures Act (Regulation X) and the Truth In Lending
Act (Regulation Z) and the 2013 Loan Originator Rule Under the Truth
in Lending Act (Regulation Z)).