An Act To Require a Mortgagee To Provide the Original Release of Mortgage to the Mortgagor after the Release Is Recorded
Maine Legislature, Session 125, LD 1012
Committee: Insurance and Financial Services
Sponsors: RICHARDSON, STRANG BURGESS
Amends: 33 MRSA §551

Legislative Document 
No. 1012 
H.P. 748 
House of Representatives, March 10, 2011 
An Act To Require a Mortgagee To Provide the Original Release of 
Mortgage to the Mortgagor after the Release Is Recorded 
Reference to the Committee on Insurance and Financial Services suggested and ordered 
printed. 
HEATHER J.R. PRIEST 
Clerk 
Presented by Representative RICHARDSON of Warren. 
Cosponsored by Representative: STRANG BURGESS of Cumberland. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  33 MRSA §551, 2nd ¶, as enacted by PL 1999, c. 230, §1 and affected by 
§2, is amended to read: 
Within 60 days after full performance of the conditions of the mortgage, the 
mortgagee shall record a valid and complete release of mortgage together with any 
instrument of assignment necessary to establish the mortgagee's record ownership of the 
mortgage.  Within 30 days after recording the release of mortgage, the mortgagee shall 
send the release by certified mail, return receipt requested, to the mortgagor’s address as 
listed in the mortgage agreement or to an address specified in writing by the mortgagor 
for this purpose.  As used in this paragraph, the term "mortgagee" means both the owner 
of the mortgage at the time it is satisfied and any servicer who receives the final payment 
satisfying the debt.  If a release is not transmitted to the registry of deeds within 60 days, 
the owner and any such servicer are jointly and severally liable to an aggrieved party for 
damages equal to exemplary damages of $200 per week after expiration of the 60 days, 
up to an aggregate maximum of $5,000 for all aggrieved parties or the actual loss 
sustained by the aggrieved party, whichever is greater.  If multiple aggrieved parties seek 
exemplary damages, the court shall equitably allocate the maximum amount.  If the 
release is not sent by certified mail, return receipt requested, to the mortgagor’s address 
as listed in the mortgage agreement or to an address specified in writing by the mortgagor 
for this purpose within 30 days after the release is recorded, the mortgagee is liable to an 
aggrieved party for damages equal to exemplary damages of $500.  The mortgagee is also 
liable for court costs and reasonable attorney's fees in any successful action to enforce the 
liability imposed under this paragraph. The mortgagee may charge the mortgagor for any 
recording fees incurred in recording the release of mortgage and any postage fees 
incurred in sending the release to the mortgagor. 
SUMMARY 
This bill requires that, within 30 days after recording a release of a mortgage, the 
mortgagee must send the release by certified mail, return receipt requested, to the 
mortgagor’s address as listed in the mortgage or to an address specified by the mortgagor 
for this purpose.  A mortgagee who fails to provide the release to the mortgagor in the 
manner specified is liable to an aggrieved party for damages equal to exemplary damages 
of $500.