Payoff · 12 CFR 1026.36(c)(3)Mortgage payoff statement: the 7-business-day deadline
For a consumer loan secured by a dwelling, the creditor, assignee or servicer must provide an accurate statement of the total amount needed to pay the loan in full as of a specified date. It must be sent within a reasonable time and in no case more than seven business days after receiving a written request from the consumer or any person acting on the consumer's behalf – in practice often the title or escrow company with the seller's authorization (12 CFR 1026.36(c)(3)). If the loan is in bankruptcy or foreclosure, is a reverse mortgage or shared appreciation mortgage, or a natural disaster or similar circumstance prevents it, the statement is due within a reasonable time instead. A creditor or assignee that no longer owns the loan or the servicing rights does not have to provide it. 'Business day' here means a day the creditor's offices are open for substantially all business (§1026.2(a)(6)).
What Regulation Z says
Who must provide it
The creditor, assignee or servicer that holds the loan or the servicing (§1026.36(c)(3)).
Trigger
A written request from the consumer or any person acting on the consumer's behalf.
Deadline
A reasonable time, and no more than 7 business days after receiving the request.
Content
An accurate total to pay the loan in full as of a specified date.
Exceptions
Bankruptcy, foreclosure, reverse or shared appreciation mortgages, natural disasters – a reasonable time instead.
Business day
A day the creditor's offices are open for substantially all business functions (§1026.2(a)(6)).
How to order a payoff without delays
- Send the request in writing – by the servicer's stated method – with the seller's signed authorization.
- Ask for a good-through date past the closing date, with the per-diem interest.
- Order it as soon as the contract is signed; a second-lien, HELOC or HOA payoff runs on its own clock.
What the TC tracks
- The date the written request was received – the 7 business days count from it.
- The good-through date against the closing date; reorder if closing moves.
- For a HELOC, the request to freeze or close the line so no new draws are made.
Questions sellers and title ask
How long does a lender have to send a payoff statement?
A reasonable time, and no more than 7 business days after receiving a written request (12 CFR 1026.36(c)(3)), unless an exception such as bankruptcy, foreclosure or a reverse mortgage applies.
Can the title company request my payoff?
Yes – the rule covers a written request from the consumer or any person acting on the consumer's behalf; servicers usually ask for the borrower's signed authorization.
What if closing is delayed past the payoff's good-through date?
Order an updated statement; the payoff is accurate only as of the date it specifies.
Related guides
The seller checklist in ClosingCode includes 'Request mortgage payoff statement' with an owner and due date; reorder it when the closing date moves.
Start free trialSources: 12 CFR 1026.36(c)(3) and 1026.2(a)(6) (Regulation Z, eCFR, read October 25, 2026).
General information, not legal advice. ClosingCode is software; it is not a law firm, lender or brokerage. This guide is not a substitute for the advice or services of an attorney.