Bill Text: NY S00564 | 2023-2024 | General Assembly | Amended

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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: (Engrossed) 2024-05-20 - referred to banks [S00564 Detail]

Download: New_York-2023-S00564-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         564--A

                               2023-2024 Regular Sessions

                    IN SENATE

                                     January 5, 2023
                                       ___________

        Introduced  by  Sens.  KAVANAGH, ADDABBO, BRISPORT, JACKSON, MAY, MYRIE,
          RAMOS, SANDERS -- read twice and ordered printed, and when printed  to
          be  committed  to the Committee on Banks -- committee discharged, bill
          amended, ordered reprinted as amended and recommitted to said  commit-
          tee

        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 his or her 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.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00882-03-3
        S. 564--A                           2

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