Bill Text: NY S00070 | 2025-2026 | General Assembly | Introduced

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Bill Title: Provides that any person who has been injured by reason of any violation of any such rules, regulations or policies as the superintendent may promulgate may bring an action in his or her own name; assert a counterclaim; or, if an action is commenced by the mortgagee or anyone acting on its behalf, bring a third party claim, against either the mortgagee and/or the mortgage servicer to enjoin any violations thereof; authorizes damages; makes related provisions.

Spectrum: Partisan Bill (Democrat 9-0)

Status: (Introduced) 2025-01-08 - REFERRED TO BANKS [S00070 Detail]

Download: New_York-2025-S00070-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                           70

                               2025-2026 Regular Sessions

                    IN SENATE

                                       (Prefiled)

                                     January 8, 2025
                                       ___________

        Introduced  by  Sens.  KAVANAGH, ADDABBO, BRISPORT, JACKSON, MAY, MYRIE,
          RAMOS, SANDERS, WEBB -- read  twice  and  ordered  printed,  and  when
          printed to be committed to the Committee on Banks

        AN ACT to amend the banking law, in relation to mortgage loan servicers

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Section 595-b of the banking law is amended by  adding  two
     2  new subdivisions 3 and 4 to read as follows:
     3    3.  Actions and damages. (a) Any person who has been injured by reason
     4  of any violation of any such  rules,  regulations  or  policies  as  the
     5  superintendent  may  promulgate to effectuate the purposes of this arti-
     6  cle, including but not limited  to  3  NYCRR  419  or  any  subsequently
     7  promulgated mortgage servicing rules pursuant to this subdivision, may:
     8    (i) Bring an action in such person's own name;
     9    (ii) Assert a counterclaim; or
    10    (iii)  If  an action is commenced by the mortgagee or anyone acting on
    11  its behalf, bring a third party  claim,  against  either  the  mortgagee
    12  and/or the mortgage servicer to enjoin any violations thereof.
    13    (b) The person injured pursuant to this section:
    14    (i)  May  recover  statutory  damages  of  one  thousand  dollars  per
    15  violation;
    16    (ii) May recover treble actual damages; and
    17    (iii) If awarded damages or injunctive relief, shall also be  entitled
    18  to  recover  costs and expenses, including but not limited to reasonable
    19  attorneys' fees.
    20    (c) The mortgagee and the  mortgage  servicer  shall  be  jointly  and
    21  severally  liable  for  any  recoveries  by  an injured mortgagor in any
    22  action brought pursuant to this subdivision.
    23    4. Compliance with rules, regulations or policies. Material compliance
    24  with any such rules, regulations or policies as the  superintendent  may

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00016-01-5
        S. 70                               2

     1  promulgate to effectuate the purposes of this article, including but not
     2  limited  to 3 NYCRR 419 or any subsequently promulgated mortgage servic-
     3  ing rules pursuant to this subdivision, shall be a  condition  precedent
     4  to  commencing  an  action  to foreclose upon a mortgage subject to this
     5  article or an action on the note, and the failure to  materially  comply
     6  with  such  rules, regulations or policies shall be a defense to a fore-
     7  closure action or action on the note, even if servicing has been  trans-
     8  ferred  to  a  different  mortgage servicer when a foreclosure action or
     9  action on the note is commenced.
    10    § 2. This act shall take effect on the thirtieth day  after  it  shall
    11  have become a law.