Bose McKinney & Evans LLP hosted a conference for financial institutions on Friday, May 4, 2012 to discuss new rules governing mortgage expiration dates. Following is a link to the presentation:
Through Senate Enrolled Act 298, mortgages with no stated maturity date will expire 10 years after the execution date (or 10 years after recording if the execution date is not shown). Under previous law, the expiration period is 20 years. The new statute is effective July 1, 2012.
As was permitted with prior law, a lender can extend the expiration date of a mortgage that does not include a maturity date by filing an affidavit with the appropriate county recorder before the applicable expiration date that states when the debt becomes due.
During the roundtable discussion, Bose McKinney & Evans attorneys shared developing concepts and bankers attending this conference also shared the plans and strategies they are considering to address the mortgage expiration issue so that all could benefit from collective attempts to define best practices to deal with the changes in law.