Bill Text: NY A10629 | 2011-2012 | General Assembly | Amended

New York Assembly Bill 10629 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Enacts "the foreclosure fraud prevention act of 2012"; creates the crimes of residential mortgage foreclosure fraud in the first and second degrees.

Spectrum: Partisan Bill (Democrat 31-0)

Status: (Engrossed - Dead) 2012-06-21 - REFERRED TO RULES [A10629 Detail]

Download: New_York-2011-A10629-Amended.html

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                       10629--A
                                                                  R. R. 340
                                 I N  A S S E M B L Y
                                     June 11, 2012
                                      ___________
       Introduced  by  COMMITTEE ON RULES -- (at request of M. of A. Weinstein,
         Lentol, V. Lopez, P. Rivera, Robinson, Colton, Hooper, Clark,  Lavine,
         Weprin, Rosenthal, M. Miller, Abinanti, Weisenberg, Barrett, Brindisi,
         Bronson,  Zebrowski,  Roberts,  Russell,  Ramos, Gabryszak, Skartados,
         Cymbrowitz, Schimel) -- (at request of the Department of Law) --  read
         once  and  referred to the Committee on Codes -- reported and referred
         to the Committee on Rules -- amended on the  special  order  of  third
         reading,  ordered  reprinted  as  amended,  retaining its place on the
         special order of third reading
       AN ACT to amend the penal law, in relation to enacting the  "foreclosure
         fraud prevention act of 2012"
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. This act shall be known and may be cited as  the  "foreclo-
    2  sure fraud prevention act of 2012."
    3    S  2.  Section  187.00 of the penal law is amended by adding seven new
    4  subdivisions 5, 6, 7, 8, 9, 10 and 11 to read as follows:
    5    5. "RESIDENTIAL MORTGAGE FORECLOSURE FRAUD" IS COMMITTED BY  A  PERSON
    6  WHO, BEING AN AGENT OF A RESIDENTIAL MORTGAGE BUSINESS ACTING WITHIN THE
    7  SCOPE OF HIS OR HER EMPLOYMENT, INTENTIONALLY ENGAGES IN FRAUD OR DECEP-
    8  TION  BY  AUTHORIZING,  PREPARING, EXECUTING, OFFERING OR PRESENTING FOR
    9  FILING ANY WRITTEN INSTRUMENT WHICH SUCH PERSON:
   10    (A) KNOWS CONTAINS A MATERIAL FALSE STATEMENT, MATERIAL FALSE INFORMA-
   11  TION OR A MATERIAL OMISSION; AND
   12    (B) KNOWS OR BELIEVES WILL BE FILED  WITH  A  COURT  OR  OTHER  PUBLIC
   13  OFFICE  OR PUBLIC SERVANT, INCLUDING BUT NOT LIMITED TO A FEDERAL, STATE
   14  OR LOCAL AGENCY, DEPARTMENT OR BUREAU, IN SUPPORT OF OR  IN  CONJUNCTION
   15  WITH A PENDING OR PROSPECTIVE RESIDENTIAL MORTGAGE FORECLOSURE ACTION.
   16    6. "AGENT" SHALL HAVE THE SAME MEANING AS PROVIDED IN PARAGRAPH (A) OF
   17  SUBDIVISION ONE OF SECTION 20.20 OF THIS CHAPTER.
   18    7.  "HIGH MANAGERIAL AGENT" SHALL HAVE THE SAME MEANING AS PROVIDED IN
   19  PARAGRAPH (B) OF SUBDIVISION ONE OF SECTION 20.20 OF THIS CHAPTER.
   20    8. "WRITTEN INSTRUMENT" SHALL HAVE THE SAME  MEANING  AS  PROVIDED  IN
   21  SUBDIVISION THREE OF SECTION 175.00 OF THIS PART.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD16190-03-2
       A. 10629--A                         2
    1    9.  "RESIDENTIAL  MORTGAGE BUSINESS" MEANS A LENDER OR ANY OTHER PART-
    2  NERSHIP, CORPORATION, COMPANY, TRUST OR ASSOCIATION ENGAGED IN WHOLE  OR
    3  IN PART IN THE BUSINESS OF ORIGINATING, GRANTING, SERVICING OR FORECLOS-
    4  ING UPON RESIDENTIAL MORTGAGE LOANS.
    5    10.  "LENDER"  MEANS  A MORTGAGE BANKER AS DEFINED IN PARAGRAPH (F) OF
    6  SUBDIVISION ONE OF SECTION FIVE HUNDRED NINETY OF THE BANKING LAW OR  AN
    7  EXEMPT  ORGANIZATION  AS  DEFINED IN PARAGRAPH (E) OF SUBDIVISION ONE OF
    8  SECTION FIVE HUNDRED NINETY OF THE BANKING LAW.
    9    11. "RESIDENTIAL MORTGAGE FORECLOSURE ACTION" MEANS AN ACTION  BROUGHT
   10  PURSUANT  TO  THE REAL PROPERTY ACTIONS AND PROCEEDINGS LAW TO FORECLOSE
   11  UPON A RESIDENTIAL MORTGAGE LOAN.
   12    S 3. The penal law is amended by adding two new  sections  187.30  and
   13  187.35 to read as follows:
   14  S 187.30 RESIDENTIAL MORTGAGE FORECLOSURE FRAUD IN THE SECOND DEGREE.
   15    A  PERSON  IS  GUILTY OF RESIDENTIAL MORTGAGE FORECLOSURE FRAUD IN THE
   16  SECOND DEGREE WHEN HE OR SHE COMMITS  RESIDENTIAL  MORTGAGE  FORECLOSURE
   17  FRAUD.
   18    RESIDENTIAL MORTGAGE FORECLOSURE FRAUD IN THE SECOND DEGREE IS A CLASS
   19  A MISDEMEANOR.
   20  S 187.35 RESIDENTIAL MORTGAGE FORECLOSURE FRAUD IN THE FIRST DEGREE.
   21    A  PERSON  IS  GUILTY OF RESIDENTIAL MORTGAGE FORECLOSURE FRAUD IN THE
   22  FIRST DEGREE WHEN:
   23    1. AS PART OF A SYSTEMATIC ONGOING  COURSE  OF  CONDUCT,  SUCH  PERSON
   24  ENGAGES IN THE CONDUCT PROHIBITED BY SECTION 187.30 OF THIS ARTICLE WITH
   25  RESPECT  TO  FIVE  OR  MORE  PENDING OR PROSPECTIVE RESIDENTIAL MORTGAGE
   26  FORECLOSURE ACTIONS WITHIN A ONE-YEAR PERIOD; OR
   27    2. BEING A HIGH MANAGERIAL AGENT OF A RESIDENTIAL  MORTGAGE  BUSINESS,
   28  HE OR SHE:
   29    (A)  KNOWS THAT ONE OR MORE AGENTS OF SUCH BUSINESS ARE ENGAGED IN THE
   30  CONDUCT PROHIBITED BY SUBDIVISION ONE OF THIS SECTION; AND
   31    (B) FAILS TO TAKE REASONABLE MEASURES TO  PREVENT  SUCH  CONDUCT  FROM
   32  CONTINUING.
   33    RESIDENTIAL  MORTGAGE FORECLOSURE FRAUD IN THE FIRST DEGREE IS A CLASS
   34  E FELONY.
   35    S 4. This act shall take effect on the ninetieth day  after  it  shall
   36  have become a law.