Bill Text: NY S05829 | 2023-2024 | General Assembly | Introduced

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

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Bill Title: Relates to the language which must be included in mortgage foreclosure notices; requires lenders, assignees, and mortgage loan servicers to evidence strict compliance with such notice requirements as pertinent.

Spectrum: Partisan Bill (Democrat 15-0)

Status: (Engrossed - Dead) 2024-05-30 - referred to judiciary [S05829 Detail]

Download: New_York-2023-S05829-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          5829

                               2023-2024 Regular Sessions

                    IN SENATE

                                     March 17, 2023
                                       ___________

        Introduced  by  Sen. SALAZAR -- read twice and ordered printed, and when
          printed to be committed to the Committee on Housing, Construction  and
          Community Development

        AN  ACT  to  amend  the  real  property  actions and proceedings law, in
          relation to notices required prior to mortgage foreclosure

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

     1    Section  1.  The opening paragraph of subdivision 1 of section 1304 of
     2  the real property actions and proceedings law, as amended by  section  6
     3  of  part  Q  of  chapter  73 of the laws of  2016, is amended to read as
     4  follows:
     5    Notwithstanding any other provision of law,  with  regard  to  a  home
     6  loan,  at  least  ninety days before a lender, an assignee or a mortgage
     7  loan servicer commences legal action against the borrower, or  borrowers
     8  at the property address and any other address of record, including mort-
     9  gage  foreclosure, such lender, assignee or mortgage loan servicer shall
    10  give notice to the borrower in at least fourteen-point type which  shall
    11  include only the following:
    12    §  2.  The opening paragraph of subdivision 1-a of section 1304 of the
    13  real property actions and proceedings law, as added by section 3 of part
    14  HH of chapter 58 of the laws of  2018, is amended to read as follows:
    15    Notwithstanding any other provision of law, with regard to  a  reverse
    16  mortgage home loan, at least ninety days before a lender, an assignee or
    17  a  mortgage loan servicer commences legal action against the borrower or
    18  borrowers at the property address and any  other  addresses  of  record,
    19  including  reverse  mortgage foreclosure, such lender, assignee or mort-
    20  gage loan servicer shall give notice to the borrower in at  least  four-
    21  teen-point  type  except  for  the  heading  which  shall be in at least
    22  sixteen-point type which shall include only the following:
    23    § 3. Section 1304 of the real property actions and proceedings law  is
    24  amended by adding a new subdivision 8 to read as follows:

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09739-01-3
        S. 5829                             2

     1    8.  To establish compliance with this section, the lender, assignee or
     2  mortgage loan servicer shall evidence strict compliance with the  subdi-
     3  visions  of  this  section, as pertinent, and shall demonstrate that the
     4  lender, assignee or mortgage loan servicer was entitled to  enforce  the
     5  subject note and mortgage at the time the notices were sent.
     6    §  4. Severability clause. If any clause, sentence, paragraph, section
     7  or part of this act shall be adjudged by any court of  competent  juris-
     8  diction to be invalid, such judgment shall not affect, impair or invali-
     9  date  the  remainder  thereof, but shall be confined in its operation to
    10  the clause,  sentence,  paragraph,  section  or  part  thereof  directly
    11  involved  in  the  controversy  in  which  such judgment shall have been
    12  rendered.
    13    § 5. This act shall take effect immediately and  shall  apply  to  all
    14  actions  commenced  on  an  instrument  described under subdivision 4 of
    15  section 213 of the civil practice law and rules in which a  final  judg-
    16  ment of foreclosure and sale has not been enforced.