MCUL’s Affidavit Bills Pass Senate Banking and Financial Institutions Committee (Misc News: May 21, 2014)
The Senate Banking & Financial Institutions Committee approved a package of MCUL & Affiliates-supported legislation (House Bills 4638, 4639 and 4640) that would allow a copy of an original instrument that is verified by an affidavit and recorded to be deemed in compliance with property recording.
The bills were placed on the agenda by Committee Chairman Darwin Booher, R-Evart, and received a unanimous vote of support (5-0). MCUL has been working closely with bill sponsors state Reps. Peter Pettalia, R-Presque Isle, and Marilyn Lane, D-Fraser, as the package has advanced through the legislative process. Representatives of the Michigan Land Title Association have also played an important role in advancing changes to help the package move forward.
As passed by committee, the bills would protect lenders in the case of lost documents by allowing the creation, verification and recording of copies of the mortgage and property deeds in record. Since verified mortgage document copies would be recorded within the meaning of the Michigan recording statutes under this legislation, the lender position as a secured creditor would be protected. It also creates a clearer chain of title on certain parcels of property and removes potential questions about electronic recording, which has the potential to save credit unions and recording offices time and money.
MCUL will continue to work with the bill sponsors and leadership to ensure the continued advancement of this package of bills. If you have questions regarding HB 4638-4640, contact Director of Government Affairs Jordan Kingdon at Jordan.Kingdon@mcul.org.