Bill Text: NY S08915 | 2019-2020 | General Assembly | Introduced

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Bill Title: Prohibits the registration of mortgages in default prior to the filing of a notice of pendency.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-08-14 - REFERRED TO RULES [S08915 Detail]

Download: New_York-2019-S08915-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          8915

                    IN SENATE

                                     August 14, 2020
                                       ___________

        Introduced  by  Sen. KENNEDY -- read twice and ordered printed, and when
          printed to be committed to the Committee on Rules

        AN ACT to amend the  real  property  actions  and  proceedings  law,  in
          relation to prohibiting the registration of mortgages in default prior
          to the filing of a notice of pendency

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

     1    Section 1. The real property actions and proceedings law is amended by
     2  adding a new section 1393 to read as follows:
     3    § 1393. Mortgages in default. 1. No local law, ordinance or resolution
     4  shall allow for the registration of  residential  mortgages  in  default
     5  prior to a mortgagee filing a notice of pendency in a court of competent
     6  jurisdiction.
     7    2. No such local law, ordinance or resolution shall require a homeown-
     8  er or occupant to register.
     9    3.  Any  local law, ordinance or resolution that allows for the regis-
    10  tration of residential mortgages in default may  impose  a  registration
    11  fee  not exceeding seventy-five dollars annually. A mortgagee and/or its
    12  agents are prohibited from passing along such fees to the  mortgagor  in
    13  default.
    14    4.  For the purposes of this section, a mortgage default occurs when a
    15  mortgagor fails to fulfill its obligations under a mortgage agreement.
    16    5. "Registration" shall mean the collection, publication  or  posting,
    17  public  or  otherwise,  of  residential  mortgages in default by a local
    18  governing body or an agency thereof,  or  any  third-party  entity  that
    19  contracts with such local governing body.
    20    6.  "Notice  of  pendency"  shall  have the same meaning as defined in
    21  section sixty-five hundred one of the civil practice law and rules.
    22    7. A local governing body, through a local law,  ordinance  or  resol-
    23  ution,  may  impose  a  fine  on a mortgagee for noncompliance with this
    24  section or any local law, ordinance or resolution that  allows  for  the
    25  registration of residential mortgages in default. A mortgagee and/or its
    26  agents  are prohibited from passing along such fines to the mortgagor in
    27  default.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD16983-01-0
        S. 8915                             2

     1    8. The provisions of this section shall supersede any local law, ordi-
     2  nance, or resolution requiring the registration of mortgages in  default
     3  that was enacted prior to the effective date of this section.
     4    § 2. This act shall take effect immediately.