SB 22-229

Senate Bill 22-229 changes Colorado law to allow a lender or holder of a mortgage document to request the release of a deed of trust without providing the original evidence of debt (like a note or bond). To do this, they must agree to protect and defend the public trustee from any claims that arise, provide an up-to-date address for the property owner, and submit their request electronically through the county’s system. This bill also simplifies requirements for title insurance companies involved in releasing deeds of trust. Since it has been signed into law, this change is now active and affects how mortgage documents are handled when properties are paid off or transferred.

Official Summary

Under current law, with limited exceptions, a public trustee must release a deed of trust upon the satisfaction of certain preconditions, one of which is the production of the original canceled evidence of debt such as a note or bond as evidence that the indebtedness secured by the deed of trust has been paid. To this requirement, the act adds another exception. That is, a holder of the original evidence of debt may request the release of a deed of trust without producing or exhibiting the original evidence of debt if the holder: Agrees to indemnify and defend the public trustee against any claim for damages resulting from the action of the public trustee taken in accordance with the request; Provides the public trustee a current address for the original grantor, assuming party, or current owner when requesting the release of the deed of trust; and Files the request for the release of the deed of trust electronically via the county's electronic recording system. The act also removes language requiring a title insurance company to be "qualified" as well as licensed in Colorado for certain purposes relating to the release of a deed of trust. Further, the act makes necessary changes to the statutory form that is used to request a deed of trust without producing the evidence of debt. (Note: This summary applies to this bill as enacted.)

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