LOAN PAYOFF STATEMENT REQUEST LETTER

SENDER INFORMATION

From:
[________________________________]
[________________________________] (Address Line 1)
[________________________________] (Address Line 2)
[________________________________] (City, State, ZIP)
Telephone: [________________________________]
Email: [________________________________]

Date: [__/__/____]

RECIPIENT INFORMATION

To:
[________________________________] (Lender/Servicer Name)
Attn: Payoff Department / Loss Mitigation Department
[________________________________] (Address Line 1)
[________________________________] (Address Line 2)
[________________________________] (City, State, ZIP)

RE: REQUEST FOR PAYOFF STATEMENT

Loan Number: [________________________________]
Borrower Name(s): [________________________________]
Co-Borrower Name(s) (if applicable): [________________________________]
Property Address (if secured by real property): [________________________________]
Original Loan Amount: $[________________________________]
Original Loan Date: [__/__/____]

PART 1. FORMAL REQUEST

Dear Sir or Madam:

Pursuant to the Truth in Lending Act, 15 U.S.C. § 1639g, and its implementing regulation at 12 C.F.R. § 1026.36(c)(3), I hereby request a complete and accurate payoff statement for the above-referenced loan. This request is made by:

☐ The Borrower
☐ An authorized agent of the Borrower (authorization attached)
☐ The Borrower's attorney (representation letter attached)
☐ A title company or escrow agent handling the payoff (authorization attached)
☐ A subordinate lienholder
☐ Other: [________________________________]

This letter also constitutes a Qualified Written Request ("QWR") under the Real Estate Settlement Procedures Act (RESPA), 12 U.S.C. § 2605(e), and 12 C.F.R. § 1024.36, to the extent the loan is a federally related mortgage loan. Pursuant to RESPA, you must acknowledge receipt of this QWR within five (5) business days and provide a substantive response within thirty (30) business days.

PART 2. REQUESTED PAYOFF INFORMATION

Please provide the following information in the payoff statement:

2.1 Principal Balance and Payoff Amount

☐ Outstanding principal balance as of the date of the statement
☐ Total payoff amount good through [__/__/____] (requested good-through date)
☐ Per diem interest amount (daily interest accrual rate)
☐ Per diem calculation methodology (actual/360, actual/365, 30/360)
☐ Accrued but unpaid interest through the good-through date

2.2 Fees, Charges, and Adjustments

☐ Late charges accrued and unpaid
☐ Prepayment penalty amount (if applicable), with calculation methodology
☐ NSF/returned payment charges
☐ Property inspection fees
☐ Foreclosure fees and costs (if applicable)
☐ Attorney's fees assessed to the account
☐ Corporate advance balances (taxes, insurance, property preservation)
☐ Recording fees for satisfaction/release of mortgage/deed of trust
☐ Any other fees or charges assessed against the account

2.3 Escrow and Reserve Accounts

☐ Current escrow account balance (taxes, insurance, PMI/MIP)
☐ Projected escrow disbursements through the good-through date
☐ Escrow surplus/shortage amount
☐ Escrow refund amount (if payoff results in surplus)
☐ Method and timing of escrow refund disbursement

2.4 Wire Transfer and Payment Instructions

☐ Wiring instructions for payoff (bank name, routing number, account number, reference)
☐ Acceptable payoff methods (wire, certified check, cashier's check)
☐ Payee name for checks
☐ Mailing address for non-wire payoffs
☐ Any additional reference numbers required with payment

2.5 Release and Satisfaction Documentation

☐ Confirmation that a satisfaction of mortgage, release of deed of trust, or UCC-3 termination statement will be filed upon receipt of payoff funds
☐ Estimated timeframe for recording the release/satisfaction
☐ Identification of the county recorder's office where the release will be filed
☐ Original note return policy (marked "Paid in Full")
☐ Reconveyance timeline (for deeds of trust)

PART 3. FEDERAL STATUTORY REQUIREMENTS

3.1 Truth in Lending Act (TILA) — 15 U.S.C. § 1639g

Under Section 1639g of the Truth in Lending Act, a creditor or servicer of a home loan shall send an accurate payoff balance within a reasonable time, but in no case more than seven (7) business days, after the receipt of a written request for such balance from or on behalf of the borrower. This requirement is implemented by Regulation Z at 12 C.F.R. § 1026.36(c)(3).

Consequences of Non-Compliance: Failure to provide a timely payoff statement may subject the creditor or servicer to statutory damages, actual damages, and attorney's fees under TILA, 15 U.S.C. §§ 1640 and 1641.

3.2 RESPA — 12 C.F.R. § 1024.36

To the extent this loan is a federally related mortgage loan, this letter constitutes a Qualified Written Request under RESPA. You are required to:

• Acknowledge receipt within five (5) business days (12 C.F.R. § 1024.36(c))
• Provide a substantive response within thirty (30) business days (12 C.F.R. § 1024.36(d))
• Not charge a fee for responding to this request (12 C.F.R. § 1024.36(g))

During the pendency of this request, you may not furnish adverse information to any consumer reporting agency regarding any payment owed by the borrower that is the subject of this request (12 C.F.R. § 1024.35(i)).

3.3 Regulation Z — 12 C.F.R. § 1026.36(c)(3)

A creditor, assignee, or servicer must provide an accurate payoff statement within a reasonable time, but in no case more than seven (7) business days after receiving a written request from the consumer or any person authorized by the consumer. The payoff statement must include the information needed to calculate the total payoff amount.

PART 4. STATE-SPECIFIC REQUIREMENTS AND TIMELINES

4.1 California — Cal. Civ. Code § 2943

• Timeline: A beneficiary must prepare and deliver a payoff demand statement within twenty-one (21) calendar days of receipt of a written demand from an entitled person.
• Per Diem Requirement: The statement must include information reasonably necessary to calculate the payoff amount on a per diem basis for a period not exceeding 30 days.
• Penalty for Non-Compliance: Willful failure to provide the statement within 21 days subjects the beneficiary to all actual damages sustained plus a statutory forfeiture of $300 (Cal. Civ. Code § 2943(e)).
• Fee Permitted: A reasonable charge not to exceed $60 for the first statement and $30 for each subsequent statement requested within the same six-month period.
• Entitled Persons: The trustor, any beneficiary, any subordinate lienholder, a licensed escrow agent, or their authorized agents.

4.2 Texas — Tex. Prop. Code § 12.014

• Timeline: A mortgagee or servicer must deliver a release of lien within sixty (60) days of payment in full of the obligation secured by the mortgage.
• Payoff Statement: While Texas does not have a standalone statute specifically governing the timeline for payoff statements (apart from TILA), lenders and servicers are subject to the federal 7-business-day requirement.
• Penalty for Non-Compliance: Failure to release a lien within the statutory period subjects the mortgagee to a penalty of $100 per day for each day the release is not provided after the 60th day, up to a maximum of $10,000 (Tex. Prop. Code § 12.014(c)).
• Usury Note: Texas Finance Code Chapter 303 governs interest calculation; per diem amounts must be calculated consistently with the loan's stated interest rate methodology.

4.3 Florida — Fla. Stat. § 701.04

• Timeline: A mortgagee must execute and deliver a satisfaction of mortgage within sixty (60) days after payment in full of the mortgage and any required recording fees.
• Payoff Statement: Florida follows the federal 7-business-day requirement under TILA for payoff statements. Additionally, Fla. Stat. § 701.04(4) requires the mortgagee to provide a payoff figure that is accurate and includes all amounts due.
• Penalty for Non-Compliance: A mortgagee who fails to satisfy the mortgage within the statutory period is liable for actual damages plus a statutory penalty of $500 (Fla. Stat. § 701.04(2)).
• Attorney's Fees: The prevailing party in an action to compel satisfaction is entitled to reasonable attorney's fees.

4.4 New York — N.Y. Real Prop. Acts. Law § 1921

• Timeline: A mortgage holder must provide a certificate of discharge within thirty (30) days after receipt of full payment and recording charges.
• Payoff Statement: New York follows the federal 7-business-day TILA requirement for payoff statements.
• Penalty for Non-Compliance: A mortgagee who fails to provide timely satisfaction of mortgage may be liable for $500 in statutory damages plus actual damages (N.Y. Real Prop. Law § 275).
• Recording Requirements: The satisfaction of mortgage must be in recordable form and delivered to the mortgagor or the mortgagor's designee.

PART 5. DELIVERY INSTRUCTIONS FOR PAYOFF STATEMENT

Please deliver the payoff statement to the following:

Primary Recipient:
Name: [________________________________]
Address: [________________________________]
Email: [________________________________]
Fax: [________________________________]

Secondary Recipient (if applicable):
Name: [________________________________]
Address: [________________________________]
Email: [________________________________]
Fax: [________________________________]

Preferred Delivery Method: ☐ Email ☐ Fax ☐ U.S. Mail ☐ Overnight Courier

PART 6. BORROWER AUTHORIZATION

I, [________________________________], the undersigned Borrower (or authorized agent), hereby authorize [________________________________] (Lender/Servicer) to provide the payoff statement and related loan information to the following persons and entities in addition to the undersigned:

☐ [________________________________] (Attorney)
☐ [________________________________] (Title Company / Escrow Agent)
☐ [________________________________] (New Lender / Refinancing Party)
☐ [________________________________] (Other)

PART 7. PREPAYMENT PENALTY INQUIRY

If the loan contains a prepayment penalty provision, please provide the following:

☐ Whether a prepayment penalty applies to this payoff
☐ The amount of the prepayment penalty
☐ The calculation methodology for the prepayment penalty
☐ The date on which the prepayment penalty expires
☐ A copy of the relevant prepayment penalty provision from the loan documents

Note: Certain prepayment penalties are prohibited or restricted by federal and state law, including:
- TILA/Regulation Z (12 C.F.R. § 1026.32(d)(6)): Prepayment penalties are prohibited on high-cost mortgages.
- Qualified Mortgages (12 C.F.R. § 1026.43(g)): Prepayment penalties on qualified mortgages are limited to the first three years and capped at specific percentages.
- California: Cal. Civ. Code § 2954.9 restricts prepayment charges on certain residential loans.
- New York: N.Y. Banking Law § 393 limits prepayment penalties on residential mortgages to the first year.

CLOSING

I respectfully request your prompt attention to this matter. As noted above, federal law requires that you provide an accurate payoff statement within seven (7) business days of your receipt of this request. Failure to comply may result in statutory liability.

If you have any questions regarding this request or require additional information, please contact me at:

Telephone: [________________________________]
Email: [________________________________]

Thank you for your prompt attention to this matter.

Sincerely,

______________________________
[________________________________] (Print Name)
[________________________________] (Title / Capacity)
Date: [__/__/____]

ENCLOSURES

☐ Copy of Borrower's government-issued identification
☐ Authorization letter / Power of Attorney (if request is by an agent)
☐ Attorney representation letter (if request is by attorney)
☐ Copy of loan note or mortgage (if available)
☐ Other: [________________________________]

PROOF OF DELIVERY

Method of Delivery:
☐ Certified Mail, Return Receipt Requested — Tracking No.: [________________________________]
☐ Overnight Courier — Tracking No.: [________________________________]
☐ Fax — Confirmation No.: [________________________________]
☐ Email with read receipt — Date/Time Sent: [________________________________]
☐ Hand Delivery — Received by: [________________________________]

Date Sent/Delivered: [__/__/____]

SOURCES AND REFERENCES

• 15 U.S.C. § 1639g (TILA — Payoff Amounts): https://www.law.cornell.edu/uscode/text/15/1639g
• 12 C.F.R. § 1026.36(c)(3) (Regulation Z): https://www.law.cornell.edu/cfr/text/12/section-1026.36
• 12 C.F.R. § 1024.36 (Regulation X — Qualified Written Requests): https://www.law.cornell.edu/cfr/text/12/section-1024.36
• Cal. Civ. Code § 2943 (CA Payoff Demands): https://codes.findlaw.com/ca/civil-code/civ-sect-2943/
• Tex. Prop. Code § 12.014 (TX Release of Lien): https://statutes.capitol.texas.gov/Docs/PR/htm/PR.12.htm
• Fla. Stat. § 701.04 (FL Satisfaction of Mortgages): http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0701/0701.html
• N.Y. Real Prop. Acts. Law § 1921 (NY Satisfaction): https://www.nysenate.gov/legislation/laws/RPA/1921

This Payoff Statement Request Letter template is provided by ezel.ai for use by licensed attorneys. It must be customized to reflect the specific loan and applicable state law requirements. This document does not constitute legal advice.