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									                      Payment of Processing Fees


                               Requested by: Connecticut
                               Survey Deadline: May 2, 2007


   1. Does your State pay processing fees to Banks or Lending Institutions when a
      Partial Release of Mortgage or a Subordination Agreement is required, because
      the property that is needed for a highway, road or bridge project is encumbered
      by a mortgage?

   2. If the answer is no, does your State have enabling legislation that addresses this
      issue?

Thank you in advance for your assistance.


Margaret M. Kelley
Property Agent II
State of Connecticut
Department of Transportation

                                      ALABAMA

                                       ALASKA

1. Yes, we pay all costs to clear title. There are 2 scenarios that are common.

   A. Our R/W Agent performs the title clearing and pays the processing fees; or
   B. We have a title company close the transaction and the fees are paid as a total
      cost to close.

2. N/A

                                       ARIZONA

1. Yes, provided the fees are reasonable and customary. Such fees will typically be a
   trustee or re-conveyance fee. However, we do not pay legal costs if a lawyer is
   chosen to review the documents, as we do not consider this a reasonable or
   customary charge. Typical partial acquisition re-conveyance fees run between $200
   and $500, although $500 is extreme. While we normally wouldn't expect any pre-
   payment related fees associated with a partial acquisition, we have paid some lender
   endorsement fees (ensuring the secure party's lien position) over the last couple of
   years.
    All of this assumes a fee-simple acquisition. In the case of an easement we would
    try to obtain a "Consent to Easement" from the lien holder and pay a reasonable fee
    associated with securing such consent.

2. N/A

                                     ARKANSAS

1. Yes, Arkansas does pay mortgage processing fees, for the purchase of land over
   $2,500.00. When we are preparing to close a property transaction, we request from
   the mortgage company a list of requirements to get a partial release of mortgage.
   We pay any processing fees required for the partial release; however, we will not pay
   for an appraisal. When the mortgage company indicates that an appraisal is required
   we send them a copy of our “before and after” valuation.

2. Not applicable.

                                     CALIFORNIA

1. Yes, the California Department of Transportation (Department) does pay processing
   fees (re-conveyance fees) to Banks or Lending institutions when a Partial Release of
   Mortgage or a Subordination Agreement is required, because the property that is
   needed for a highway, road or bridge project is encumbered by a mortgage. The
   Department also pays all escrow and recording fees associated with a particular
   transaction. In addition, our standard contract with title companies also states, in
   part, that the Department will pay re-conveyance fees.

2. N/A

                                     COLORADO

                                   CONNECTICUT

                                     DELAWARE

1. Delaware has traditionally paid $250 for the release. Recently lenders have been
   requesting up to $500 with a copy of the appraisal. We have made an internal
   decision to not seek a release on Valuation Waiver acquisitions up to the $10,000 as
   they are not considered to be an appraisal and as long as we determine that the
   equitable standing of the mortgage is not jeopardized.

2. While we discussed enacting legislation, it was not done. We still are faced with
   delays in receiving the mortgage releases.
                               DISTRICT OF COLUMBIA

1. Yes, this is covered in the ROW Manual. Below is the section of the Manual that
   covers the Reimbursement of Incidental Expenses.

8.9.2    Reimbursement of Incidental Expenses

         ...DDOT must reimburse any other incidental payments (boundary surveys, title,
         prepayment penalties, re-conveyance fees, etc.) incurred by the owner in
         transferring the property.

Should you need additional information, please contact John Makle of our staff.

District Department of Transportation
2000 14th St., NW, Fifth Floor
Washington, DC 20009

                                        FLORIDA

1. We occasionally pay processing fees as a closing cost.

2. N/A

                                        GEORGIA

                                        HAWAII

1. Yes, when requested by the lender, we have been paying processing fees to lenders
   for Partial Releases of Mortgage. With limited success, we try to get the lender to
   waive or reduce the fee by explaining that we are a State agency.

2. No.

                                         IDAHO

1. The State of Idaho, Idaho Transportation Department does pay processing fees to
   Banks & Lending institutions when a partial release is required to clear the lien of a
   Mortgage or Deed of Trust from property required for any highway, road or bridge
   project.

2. No.
                                       ILLINOIS

1. No.

2. No.

                                       INDIANA

1. Indiana pays partial mortgage release fees. I interpret 49 CFR 24.106 as requiring
    payment for them since the agency is the requester of the release in order to acquire
    clear title. Indiana state law doesn’t address the issue.

2. No.

                                         IOWA

As a general rule, yes, and some charged by large multi-state banks are getting quite
high. Sometimes our agents are able to persuade them to waive the fee.

                                       KANSAS

                                      KENTUCKY

                                      LOUISIANA

1. The State of Louisiana does pay all reasonable processing fees to Banks or Lending
   Institutions when a partial release of mortgage or a subordination agreement is
   needed.

2. N/A

                                        MAINE

                                      MARYLAND

1. Yes - in Maryland we pay these fees if required. Although state law limits a partial
   release fee to $15, we pay higher amounts in order to successfully complete the
   process.

2. N/A

                                  MASSACHUSETTS

1. No.

2. No.
                                       MICHIGAN

1. Yes. However, if the taking is low value and has a minimal impact on the remainder
   property we may make a risk management type decision to forgo the partial release
   or we may ask for an easement instead of fee simple.

    In most cases the problem is not the cost of the partial release processing fee, but
    the long period of time it takes the lender to process and execute a partial release.

2. Michigan has no legislation addressing this issue.

                                      MINNESOTA

1. In answer to your question regarding payment of processing fees to banks on partial
   releases and subordination agreements: Yes, the state of Minnesota does pay
   these fees in order to complete the required transaction.

2. N/A

                                      MISSISSIPPI

1. We pay $250-$350 to the mortgage institutions that require it. We pay these fees as
   “incidental expenses” under the Uniform Act. Many times a copy of our appraisal will
   be requested also, but we have refused to give a copy of it. We will send them a
   letter summarizing the components of the appraisal. Dealing with the nationwide,
   secondary, lending institutions, has become increasingly difficult.

2. N/A

                                       MISSOURI

                                       MONTANA

1. Yes, when required by the lending institution. (Local banks don't typically require a
   processing fee but most out-of-state mortgage companies do and we have no
   enabling legislation to waive this.)

2. N/A

                                      NEBRASKA

1. Yes

2. N/A

                                        NEVADA
                                    NEW HAMPSHIRE

1. Yes

2. N/A

                                      NEW JERSEY

                                      NEW MEXICO

                                       NEW YORK

1. NYSDOT can pay for banks or lending institutions (institutional lenders) to execute an
   Assignment of Claim and Release (ACR) for a mortgage on the appropriated
   property. NYSDOT verifies that the institutional lender is listed on the letter of title
   certification from the Office of the Attorney General. We initiate the payment after we
   have received the executed ACR.

   If the fair market value for the appropriated property does not exceed $5,000 and it is
   a partial acquisition (excluding $1PW donations), then we waive the requirement of
   the ACR provided that the property owner signs an Affidavit noting that they are
   current on their mortgage payments.

2. N/A

                                   NORTH CAROLINA

1. North Carolina pays processing fees to lending institutions in order to receive
   releases, subordinations, etc. on acquired rights of way.

2. N/A

                                    NORTH DAKOTA

1. North Dakota pays all costs to clear title.

2. N/A

                                           OHIO

1. Ohio DOT does pay fees to mortgage companies for their releases, provided the
   requested fees are reasonable for the amount of work to be performed ($100-200).
   We question anything that seems out of line with industry norms, and have refused
   to pay on occasion, where situations permit.
2. N/A

If you need anything further on this subject, please do not hesitate to contact our
statewide acquisition manager, Wayne Pace, directly at the e-mail above or via phone at
(614) 995-3541.

                                     OKLAHOMA

                                      OREGON

1. The answer to your first question is Yes, ODOT does pay processing fees to Banks
   or Lending Institutions when a Partial Release of Mortgage or a Subordination
   Agreement is required.

2. N/A

                                  PENNSYLVANIA

1. We have not paid processing fees to Banks or Lending Institutions when a Partial
   Release of Mortgage is required because we have not been asked to do so.

2. Section 708 of the PA Eminent Domain Code requires reimbursement to the owner
   for expenses necessarily incurred for expenses incidental to conveying the real
   property to the acquiring agency. Bank fees to process a partial release of mortgage
   would be included as payable under this section.


                                   PUERTO RICO

                                   RHODE ISLAND

                                 SOUTH CAROLINA

1    South Carolina asks that they be waived. If the mortgage company will not waive
    the fee then it is paid.

2. N/A

                                  SOUTH DAKOTA

1. Yes, South Dakota pays a processing fee when requested by the bank or lending
   institution for partial releases

2. N/A

                                     TENNESEE
                                         TEXAS

                                         UTAH

                                       VERMONT

                                       VIRGINIA

                                     WASHINGTON

1. Yes, WSDOT does pay processing fees to Banks or Lending Institutions when a
   Partial Release of Mortgage or a Subordination Agreement is required. These fees
   qualify as “incidental expenses” incurred in transferring property to the state and are
   payable by the department. We also pay loan prepayment penalties charged by a
   mortgagee. This is in compliance with 49 CFR 24.106 and the Revised Code of
   Washington 8.26.200.

2. N/A

                                    WEST VIRGINIA

                                      WISCONSIN

1. Not if the fee is really high. For low value parcels, the regions weigh the risks and
   have the discretion to not ask for the release from the Bank or Lending Institution. In
   some cases, we choose the route of condemnation therefore avoiding the need for a
   partial release.

2. Not that I am aware of.

                                       WYOMING

1. Wydot does pay fees if they are reasonable. We will fight hard if they are too high.

2. N/A

								
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