satisfaction of mortgage


Also found in: Legal.

satisfaction of mortgage

The process of making a notation in the public records that a mortgage debt has been paid in full and is no longer a lien upon the described real estate.When paying off a loan, one should make sure the lender records the satisfaction information. Failure to do so could result in later title problems for the owner as he or she attempts to hurriedly obtain the satisfaction in time for a closing.It can also subject the lender to a cause of action for slander of title.

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Part II briefly describes the transformation of the modern mortgage transaction--from its traditional "local" character to the modern development of the "national" mortgage market--and the implications of this transformation for the way in which satisfaction of mortgages occurs.
This gap has complicated the timely satisfaction of mortgages in several ways.
State legislatures were active across the nation on mortgage issues in 1996, passing dozens of laws that affect the licensing of mortgage lenders and brokers; permissible loan fees; required disclosures; telemarketing solicitation; new mortgage products (including reverse mortgages and biweekly payment loans); and a variety of servicing issues, including escrow maintenance, PMI cancellation, satisfaction of mortgages and foreclosure.