TRENTON – Legislation sponsored by Senator Patrick J. Diegnan, Jr. and Senator Joseph Cryan which would require creditors to provide a mortgage payoff balance on home loans within five days of receiving the request cleared the Senate Commerce Committee today.
“When individuals make a request to receive the payoff balance of their mortgage they deserve to get it in a timely manner,” said Senator Diegnan (D-Middlesex). “Often times these are requested for a home closing and the creditor’s delay can postpone the closing causing complications for both the seller and the buyer.”
The bill, S-743, would allow an individual, or their agent, to request a payoff balance for a specified date from their mortgage creditor through written notification. The creditor would then have five business days to respond to the request.
“Individuals should have their requests completed in a reasonable amount of time,” said Senator Cryan (D-Union). “In today’s day and age, there is no reason someone should have to wait more than five days for this information.”
The bill identifies several ways in which the individual can submit the request and specifies when the five-day-clock starts for each method.
The bill cleared committee by a vote of 4-0 and next heads to the full Senate for further consideration.