KeyBank Failure to Send Out Mortgage Satisfactions New York Class Action

When mortgages are paid off, the mortgage company must provide to the appropriate record keeper a satisfaction of mortgage document in a timely manner. The complaint for this class action alleges that KeyBank, NA does not do this within the time required.

The class for this action is all persons who had a mortgage from KeyBank that was secured by real property in New York , for which the principal, interest, and other amounts owed paid after March 30, 2014, but for which KeyBank did not present a certificate of satisfaction within thirty days at the office where the mortgage was recorded.

In New York State, the NY Real Property Act and NY Real Property Law set forth this requirement. The complaint says that, according to these laws, “mortgagees like [KeyBank must] present to the proper county clerk a satisfaction of mortgage when a mortgagor has paid the entire principal and interest due on a mortgage.”

The laws set penalties for those who don’t do this in a timely manner. A mortgagee who fails to do so within thirty days is liable to the mortgagor $500; one who fails to do so within sixty days is liable to the mortgagor $1,000; and one who presents the mortgage satisfaction more than ninety days afterwards is liable to the mortgagor for $1,500.

According to the complaint, “One of the unfortunately consequences of the consolidation of the banking industry is that banks frequently fail to comply with their obligations to timely file mortgage satisfactions.” When they finally do, the mortgage satisfactions may be months, if not years, overdue.

This is not a small thing, the complaint claims. The lack of the mortgage satisfaction document leaves a mortgage open and therefore interferes with the work of title companies in providing clear title reports. In fact, the complaint says that “there is a real possibility that a large loss by a title company as a result of the widespread failure of banks to timely present mortgage satisfactions may disrupt the entire system for transferring residential property in New York State.” It can also block landowners who need a clear title to complete a sale and impair the mortgagor’s ability to secure a future loan.

In this case, plaintiff Robert Sullivan had a home mortgage secured by KeyBank. This mortgage was recorded in the office of the clerk for the county of Westchester. On September 30, 2019, Sullivan paid off all principal and interest owed on the mortgage, thus satisfying the mortgage. According to the complaint, as of April 2, 2020, the satisfaction of mortgage still has not been recorded in the office of the county clerk.

Article Type: Lawsuit
Topic: Consumer, Real Estate

Most Recent Case Event

KeyBank Failure to Send Out Mortgage Satisfactions New York Complaint

April 2, 2020

When mortgages are paid off, the mortgage company must provide to the appropriate record keeper a satisfaction of mortgage document in a timely manner. The complaint for this class action alleges that KeyBank, NA does not do this within the time required.

KeyBank Failure to Send Out Mortgage Satisfactions New York Complaint

Case Event History

KeyBank Failure to Send Out Mortgage Satisfactions New York Complaint

April 2, 2020

When mortgages are paid off, the mortgage company must provide to the appropriate record keeper a satisfaction of mortgage document in a timely manner. The complaint for this class action alleges that KeyBank, NA does not do this within the time required.

KeyBank Failure to Send Out Mortgage Satisfactions New York Complaint
Tags: Mortgage or Loan Modifications, Mortgage-Related Unfair Practices, Servicing Your Mortgage