When a homeowner pays off the mortgage on his residence the mortgage company or financial institution must release the deed of trust and give to the homeowner the deed of release. In Huber v. Wells Fargo Home Mtg. the homeowner paid off the loan on his residence and Wells Fargo recorded a deed of release. However, Wells Fargo failed to provide to the homeowner the deed of release. The homeowner sent a demand letter to Wells Fargo demanding immediate release of the deed of trust and for the deed of release to be delivered to the homeowner within 15 days. Wells Fargo failed to respond to the letter and the homeowner filed suit against Wells Fargo and Franklin American Mortgage Co., which initially made the loan but then sold it to Wells Fargo. The trial court granted summary judgment for both defendants because Wells Fargo had recorded the deed of release and, therefore, the homeowner was not entitled to statutory damages. The homeowner appealed. The appellate court determined that the homeowner had failed to provide Franklin American with the required notice and it affirmed the summary judgment as to it. However, Wells Fargo was not so lucky. The court determined that even though Wells Fargo had complied with the purpose of section 443.130, which is aimed at financial institutions who fail to release the mortgagee's property, in accordance with the ruling the Missouri Supreme Court handed down in Glass v. First National Bank of St. Louis, 191 S.W.3d 662 (Mo. banc 2006), that did not excuse it from providing the homeowner with the deed of release as required by section 443.130.1. The homeowner was entitled to statutory damages and the appellate court reversed the trial court's ruling as to Wells Fargo.
Source: Huber v. Wells Fargo Home Mtg., ED88183, (Mo. App. E.D., 03/06/2007)