Bulletin: CT2013001

Dear Associates:

Connecticut Governor Dannel Malloy has signed the state budget bill, including what is known as the budget “implementer,” Public Acts 13-184 and 13-247. Buried in the budget and implementer are provisions that significantly increase recording fees for documents, such as mortgages and assignments of mortgage, where MERS* is a party to the instrument.

These new MERS recording fees are effective on Monday, July 15, 2013.

The changed fees for MERS-related documents are as follows:

• For Assignments of mortgage from MERS and releases of mortgage by MERS:

o   $159 for the entire document

• For any other document to which MERS is a party (e.g., a mortgage to MERS as nominee):

o   $159 for the first page plus $5 for each additional page

* We will use the term "MERS" as shorthand for the defined term "nominee of a mortgage.” While the legislature took care not to mention MERS by name, the legislation is quite obviously targeted at MERS. The increased recording fees apply to transactions involving a "nominee of a mortgagee," which term is defined as "any person who (i) serves as mortgagee in the land records for a mortgage loan registered on a national electronic database that tracks changes in mortgage servicing and beneficial ownership interests in residential mortgage loans on behalf of its members, and (ii) is a nominee or agent for the owner of the promissory note or the subsequent buyer, transferee or beneficial owner of such note." If another entity were to someday materialize which fits this definition, then these increased recording fees would also apply to transactions involving that entity.

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