“MERS” Document Recording Fees are Increasing under the Connecticut Budget Bill.
The Connecticut General Assembly has approved the biennial budget House Bill 6704. Governor Malloy is expected to sign the Bill, which will go into effect on July 1, 2013. Sections 97 and 98 increase recording fees for documents where there is a “nominee of a mortgagee.”
The Bill defines, a “nominee of a mortgagee” as any entity that serves as a mortgagee in the land records for a mortgage loan that is registered on a national electronic database that tracks changes in mortgage servicing and ownership interests in residential mortgage loans on behalf of its members, and is a nominee or agent for the owner of the promissory note or the subsequent buyer, transferee or beneficial owner of such note.
Section 98 of the bill amends subsection (a) of § 7-34a of the Connecticut General Statutes to provide that the recording fees for documents recorded by a nominee shall be as follows:
Documents, except for mortgage assignments in which the nominee appears as assignor will be charged $116 for the 1st page and $5 for each additional page.
The recording will also be subject to the historical records fee ($3) and the recording surcharge ($40). Making the Total Charge for the 1st Page $159.00.
$159.00 will be charged for the entire assignment for Mortgage assignments in which the nominee of a mortgagee appears as assignor:
The bill also states that “no other fees shall be collected from the nominee for such recording,” so the nominee would presumably not have to pay the additional recording surcharges.
Section 97 of the bill amends Section 49-10 of the Connecticut General Statutes by specifying how the increased recording fees shall be allocated between the town and the state.
As Table 5 shows, the bill’s fee schedule depends on whether the nominee appears as the assignor in the mortgage assignment.
Table 5: Bill’s Fee Schedule for Documents Recorded by a Nominee
|
Document Recorded by a Nominee |
Fee |
|
Any document except mortgage assignments in which nominee appears as assignor |
1st page: $ 116 Each additional page: $ 5 Recording surcharge: $ 43 |
|
Mortgage assignment in which nominee appears as assignor |
$ 159 for entire assignment |
MAKE SURE YOU COLLECT THE PROPER RECORDING FEES IF YOU EXPECT THE MORTGAGE TO BE RECORDED AFTER JULY 1, 2013.