SB347 Alabama 2012 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: William “Bill” M. BeasleySenator
Democrat
Co-Sponsors: Vivian Davis Figures Jimmy Holley Greg J. Reed Dick Brewbaker Paul Bussman Bill Holtzclaw Clay Scofield Bryan Taylor Jerry L. Fielding Tom Whatley George M. “Marc” Keahey Bobby D. Singleton Arthur Orr Cam Ward Gerald H. Allen J.T. Waggoner Del Marsh Ben H. Brooks Rodger Smitherman Paul Sanford Rusty Glover Linda Coleman-Madison Priscilla Dunn Mark Slade Blackwell
Session: Regular Session 2012
Title: Mortgages, Alabama Residential Mortgage Satisfaction Act, provides for timely payoff statements and timely recording of mortgage satisfaction, Secs. 35-10-26, 35-10-30 am'd
Summary: SB347 creates the Alabama Residential Mortgage Satisfaction Act to speed up payoff statements, require timely recording of satisfactions, and provide a path to clear title for residential mortgages.
What This Bill Does
It requires secured creditors to issue payoff statements within 14 days after proper notification and to include key payoff details. It also requires lenders to record the satisfaction of the mortgage within 30 days after full payment. If the creditor misses these deadlines, mortgagors have remedies, including a $500 penalty after a written request and possible damages. The act also allows title insurance companies or attorneys to act as satisfaction agents to prepare and record affidavits of satisfaction that terminate the security interest when recorded.

Who It Affects
Entitled persons (mortgagors and others responsible for the loan) would get payoff statements promptly and can pursue remedies if the creditor delays or fails to record.
Secured creditors (lenders) would have to provide payoff statements in 14 days, record satisfactions in 30 days after payment, and may be liable for penalties, damages, or affidavit-based title clearing.

Key Provisions
Scope and applicability: Applies to residential property in Alabama (one to four units) and excludes commercial mortgages and security interests in fixtures only.
Payoff statements: Entitled persons may request payoff statements; lenders must respond within 14 days and include the amount, date, per diem interest, and how to pay; equity lines may have payoffs that can change.
Recording of satisfactions and penalties: Lenders must file a satisfaction for recording within 30 days after full payment; if they fail, mortgagors may seek a $500 penalty after a 21-day written request and may pursue damages.
Satisfaction agents and affidavits: Title insurance companies or licensed attorneys may serve as satisfaction agents; they may sign and record an affidavit of satisfaction after meeting conditions, terminating the mortgage when recorded.
Liability and amendments to law: The act imposes liability for erroneous statements but provides safe harbors for reasonable procedures and bona fide errors; it amends sections 35-10-26 and 35-10-30 to conform to the act; it becomes effective March 1, 2013.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Mortgages