Wisconsin Passes New Mortgage Payoff Requirements

The Wisconsin State Assembly recently passed a bill amending the current law regarding mortgage payoff statements.  Under the new law, a secured creditor now has options to qualify a payoff amount, provided that the interest being secured is not in residential real property.

Previously, Wisconsin did not allow a secured creditor to qualify a payoff amount or state that the payoff amount was subject to change before the payoff date.  2017 Wisconsin Act 332 amends the prior law, and allows a secured creditor to qualify a payoff amount, state that the payoff amount cannot be practically be determined, or state that the payoff amount is subject to change before the payoff date, if two criteria are met: (i) the security instrument must secure an interest in non-residential real property; and (ii) the payoff statement gives instructions for how a person or that person’s authorized agent may obtain the updated payoff amount without incurring an additional charge during the secured creditor’s normal business hours on the payoff date or the immediately preceding business day.

The bill went into effect April 18, 2018.