Rhode Island Servicing Reference Guide
- Kacey Olson
Owned by Kacey Olson
| Citation | Topic | Requirement |
| Mortgage Foreclosure and Sale / R.I. Gen. Laws §34-27-3.2(m) | Affidavit of Exemption - Locally-Based Mortgagee | The second exemption exists for entities that qualify as “Locally-based Mortgagees,” which are defined in Banking Regulation 5, Section 3, Paragraph G as “a Rhode Island-based Mortgagee with headquarters in Rhode Island or with a physical office or offices exclusively in Rhode Island from which is carried out full-service mortgage operations including acceptance and processing of mortgage payments and provision of local customer service and loss mitigation and where Rhode Island staff have the authority to approve loan restructuring and loss mitigation strategies.” Appendix D 1 of Banking Regulation 5 contains the form of affidavit for completion by the mortgagee who qualifies as a “Locally-based Mortgagee,” and it should be submitted with the foreclosure deed for recording and may be used as evidence for title insurers. |
| Mortgage Foreclosure and Sale / R.I. Gen. Laws §34-27-4(b) | Affidavit of Sale under Power of Sale of Mortgage | The mortgagee must include in the foreclosure deed an affidavit of compliance with the above notice requirements. |
| Reverse Mortgages / R.I. Gen. Laws §34-25.1-11(b) | Annual Statement of Account | On an annual basis and when the loan becomes due, the lender must issue to the borrower, without charge, a statement of account regarding the activity of the mortgage for the preceding calendar year, or for the period since the last statement of account was provided. |
| Mortgage Foreclosure and Sale / R.I. Gen. Laws §34-27-3.2 | Certificate of Compliance with Mediation Requirement | Upon verification or a good faith determination by the mediation coordinator, a certificate will be issued immediately by the mediation coordinator authorizing the mortgagee to proceed with the foreclosure action, including recording the deed. The certificate must be recorded along with the foreclosure deed. |
| Reverse Mortgages / R.I. Gen. Laws §34-25.1-11(a) | Contact Information for Borrower Inquires | The lender must provide to the borrower contact information for the lender's (or its assignee's or servicing agent's, as the case may be) employees or agents who have been designated to respond to inquiries concerning reverse mortgage loans. |
| Redemption, Release, and Transfer of Mortgages / R.I. Gen. Laws §34-26-2(a) | Disbursement of Escrow Funds Upon Full Satisfaction | A mortgagee, upon having received full satisfaction of the mortgage, must, within 30 days after final payment, disburse to the mortgagor any and all funds held in escrow under the terms of the mortgage. |
Discharge of Mortgage | A mortgagee of real estate, or any person that owns or services a loan secured by a mortgage on property located in Rhode Island, must issue or provide a discharge of the mortgage securing the loan within 30 days of receiving final and full payment, either by a separate instrument of release or by indicating the satisfaction and discharge of the mortgage on the face of the mortgage itself. The mortgagee, upon satisfaction, must also send the discharge to be recorded in the proper record book with suitable references to the original record, including the mortgagor's name and address, which will forever discharge, defeat and release the mortgage and perpetually bar all actions to be brought in any court. | |
| Reverse Mortgages / R.I. Gen. Laws §34-25.1-5 | Discharge of Mortgage - Reverse mortgage | A lender under an open-end reverse mortgage will not be obligated to discharge the mortgage until the lender receives full satisfaction for the money due thereon and the written agreements as the lender may reasonably request releasing the lender from any further obligation to make future advances under any and all notes and agreements secured by the mortgage deed. In addition, the lender under an open-end reverse mortgage will have the option to discharge the mortgage if there has been no balance outstanding for a continuous period of not less than 2 years. Upon the recording of the discharge, the lender will be released and discharged from any further obligation to make any loans or advances under any notes or agreements executed in connection with the mortgage. |
| Rhode Island Senate Bill 388 | Failure to Pay Property Taxes After Foreclosure Sale | The grantee of real estate named in the foreclosure deed must pay all taxes and other assessments (including water charges, interest, and penalties) due to the municipality, on or before the date the foreclosure deed is recorded. The only exception would be if the grantee applied for a municipal lien certificate, in which case the taxes would be due within 30 days after the certificate is mailed by the tax collector. Imposes a monthly penalty from $40 to $300 per month, with a maximum aggregate penalty of two thousand dollars ($2,000). |
| Rhode Island Senate Bill 388 | Failure to Promptly Record Foreclosure Deed | In the event of a public auction, if a mortgagee (or affiliate) is the successful bidder for the property, the foreclosure deed must be recorded in the records of land evidence for the municipality where the real estate is located within 45 days after the date of the sale. The deed must include the date of the foreclosure, and must be captioned “foreclosure deed.” Imposes a monthly penalty from $40 to $300 per month, with a maximum aggregate penalty of two thousand dollars ($2,000). |
| R.I. Gen. Laws §9-26-16(a) | Foreclosure Sale | (a) The officer shall give public notice of the levy and of the intended sale of the real estate or interest therein under the levy: first by mailing by certified mail return receipt requested to the record owner of the real estate as of the date sixty (60) days prior to the scheduled sale date, including the day of the mailing in the computation, without reference to any adjournment, continuation, or postponement of the sale, at the address of the real estate and, if different, at the owner's address listed with the tax collector's office of the city or town where the real estate is situated as of such date at least twenty (20) days prior to first publishing the notice, including the day of the mailing in the computation; second by causing an advertisement thereof to be published once a week for the space of three (3) weeks next before the time of the sale in some public newspaper published in the county where the real estate lies, and if no such public newspaper is published therein, then in some public newspaper published daily in the city of Providence; and third by mailing written notice of the time and place of the sale by certified mail return receipt requested to all persons who have recorded a mortgage, attachment, lien, or any other encumbrance relating to the real estate under the levy which is junior or subordinate to the levy at the address, if any, of the holder of the mortgage, attachment, lien, or other encumbrance as set forth in the recorded instrument or to the address of the holder's attorney as set forth in the recorded mortgage, attachment, lien, or other encumbrance at least fourteen (14) days prior to the scheduled sale date, without regard to any adjournment, continuation, or postponement of the sale. If no such address shall be set forth in the mortgage, attachment, lien, or other encumbrance or if the instrument shall not have been recorded more than thirty (30) days prior to the scheduled sale date, without reference to any adjournment, continuation, or postponement of the sale, no such notice need be mailed to the holder of any such mortgage, attachment, lien, or other encumbrance. If any such notice is so mailed but is undeliverable to the owner or the holder, is refused by the owner or the holder, is unclaimed by the owner or the holder, or if the owner's or holder's forwarding notice shall have expired, or if the notice shall otherwise not be delivered by the United States Postal Service, the notice requirement shall be deemed satisfied. If a notice is not given prior to the sale to all persons who have recorded a mortgage, attachment, lien, or any other encumbrance relating to the levied premises, which is junior or subordinate to the execution, the encumbrance shall survive the sale for a period of one year from the date of sale unless a written notice of commencement of foreclosure proceedings of the mortgage or a written notice of intent to enforce the attachment, lien, or other encumbrance is recorded in the land evidence records in the city or town where the levied premises are located. Failure to record written notice within one year of the sale shall render the mortgage, attachment, lien, or other encumbrance, which is junior or subordinate to the execution, unenforceable. If no person redeem the real estate or interest therein before the real estate shall be exposed for sale, which sale shall not be earlier than three (3) months after levy, the officer shall sell the real estate, or so much thereof as shall be sufficient to satisfy the judgment obtained and the costs and charges, at public auction, and a deed thereof, by him or her given, shall vest in the purchaser all the estate, right, and interest which the debtor had therein at the time the estate was attached, or in case there was no attachment, all the estate, right, and interest which the debtor had at the time the levy was made, and the surplus of money that shall arise from the sale of the real estate or interest therein after satisfying the execution and the costs and charges shall be deposited with the general treasurer for the owner thereof, and shall be liable to be attached for his or her other debts. |
| Mortgage Foreclosure and Sale / R.I. Gen. Laws §34-27-4(c) | Foreclosure Sales Affecting Servicemembers | The Notice of Sale must also contain a copy for servicemembers printed in not less than 12-point type that includes, in at least 14-point type the following: “A servicemember on active duty or deployment or who has recently ceased such duty or deployment has certain rights under subsection 34-27-4(d) of the Rhode Island general laws set out below. To protect your rights if you are such a servicemember, you should give written notice to the servicer of the obligation or the attorney conducting the foreclosure, prior to the sale, that you are a servicemember on active duty or deployment or who has recently ceased such duty or deployment. This notice may be given on your behalf by your authorized representative. If you have any questions about this notice, you should consult with an attorney." The mortgagee must include in the foreclosure deed an affidavit of compliance with this provision. |
| Mortgage Foreclosure and Sale / R.I. Gen. Laws §34-27-3.2(e) | Notice of Mediation Conference | When a mortgage is not more than 120 days delinquent, the mortgagee or its mortgage servicer or other agent or representative of the mortgagee must provide to the mortgagor written notice, by certified and first class mail at the address of the real estate and, if different, at the address designated by the mortgagor as the mortgagor's address for receipt of notices, that the mortgagee may not foreclose on the mortgaged property without first participating in a mediation conference. |
| Mortgage Foreclosure and Sale / R.I. Gen. Laws §34-27-7 | Notice of Pending Foreclosure | Notice of pending foreclosure to be provided to tenants at least 1 business day prior to the first publication of the notice of sale. |
| Mortgage Foreclosure and Sale / R.I. Gen. Laws §34-27-4(a) | Notice of Sale - Non-Judicial | Whenever any real estate is to be sold under a power of sale, a notice of the sale must be given. The Notice of Sale must set forth the time and place of sale. The notice must be published in a public newspaper at least once a week for 3 successive weeks prior to the sale. The first publication of the notice must be at least 21 days prior to the date of the sale, including the date of the first publication in the computation. The third publication of the notice must be no fewer than 7 days before the original date of sale listed in the advertisement, including the day of the third publication in the computation, and no more than 14 days before the original date of sale listed in the advertisement. The sale may take place no more than 14 days from the date on which the third consecutive notice is published, excluding the days of the third publication in the computation. In addition, the Notice of Sale must be mailed to the mortgagor, by certified mail, return receipt requested, at least 30 days prior to the first publication, including the date of mailing in the computation. |
| R.I. Gen. Laws §34-27-7(a) | Notice to Tenants of Foreclosure Sale | (a) The mortgagee shall provide to each bona fide tenant a written notice: (1) Stating that the real estate is scheduled to be sold at foreclosure; (2) Stating the date, time, and place initially scheduled for the sale; (3) Informing of the availability and advisability of counseling and information services; (4) Providing the address and telephone number of the Rhode Island housing help center and the United Way 2-1-1 center; (5) Reminding the recipient to continue paying rent to the landlord until the foreclosure sale occurs; and (6) Stating that this notice is not an eviction notice. The notice shall be mailed by first-class mail at least one business day prior to the first publication of the notice required by § 34-27-4. |
| Community Obligations and Banking Offenses / R.I. Gen. Laws §19-9-9(a) | Payoff Statement | Every lending institution or other entity that owns or services a loan, secured by a mortgage on property must: (1) provide to the obligor within 3 business days after receipt of a written or faxed request, the exact payoff due the lender on the loan; (2) permit the payoff to be made to it or, in the case of a mortgage owned or serviced by its subsidiary or affiliate or servicing agent, permit the payoff to be made at the subsidiary's or affiliate's principal place of business located in Rhode Island; (3) accept as final interest due the lender on this payoff the interest calculated as of the business day full payment is made to the lending institution or servicing agent; and (4) issue, or provide to the mortgagor or his or her agent or real estate closing officer a discharge of the mortgage securing the loan within 30 days after full payment of the payoff and final interest by separate instrument of release of the mortgage or as provided in R.I. Gen. Laws §34-26-3. With respect to item (1), if the payoff is requested for a loan that is 45 days or more delinquent in payment, the payoff may be provided within 5 business days of the request. |
| R.I. Gen. Laws §34-27-4(d) | Special Rules for Service Members | (d) Foreclosure sales affecting servicemembers. (5) Sale or foreclosure. A sale, foreclosure or seizure of property for a breach of an obligation of a servicemember who is entitled to the benefits under subsection (d) and who provided the mortgagee with written notice permitted under subdivision (d)(3) shall not be valid if made during, or within nine (9) months after, the period of the servicemember's military service except: (i) Upon a court order granted before such sale, foreclosure or seizure after hearing on a petition filed by the mortgagee against such servicemember; or (ii) If made pursuant to an agreement of all parties. (6) Penalties. A mortgagee who knowingly makes or causes to be made a sale, foreclosure or seizure of property that is prohibited by subsection (d)(3) shall be fined the sum of one thousand dollars ($1,000), or imprisoned for not more than one year, or both. The remedies and rights provided hereunder are in addition to and do not preclude any remedy for wrongful conversion otherwise available under law to the person claiming relief under this section, including consequential and punitive damages. |
| Lenders and Loan Brokers / R.I. Gen. Laws §19-14.1-4(2) | Statement of Account | Except for an open-end loan, upon written request from the borrower, the holder of a subordinate mortgage loan instrument must deliver to the borrower, within 10 days from receipt of a written request, a statement of the borrower's account showing the date and amount of all payments made or credited to the account and the total unpaid balance. No more than 2 statements will be required in any 12-month period. |