Bill Text: NY A06283 | 2015-2016 | General Assembly | Introduced

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Bill Title: Relates to procedures at mandatory settlement conferences in residential foreclosure actions and requires good faith settlement discussions in connection with such foreclosure actions.

Spectrum: Partisan Bill (Democrat 6-0)

Status: (Introduced - Dead) 2016-01-06 - referred to judiciary [A06283 Detail]

Download: New_York-2015-A06283-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         6283
                              2015-2016 Regular Sessions
                                 I N  A S S E M B L Y
                                    March 20, 2015
                                      ___________
       Introduced by M. of A. BARRON -- read once and referred to the Committee
         on Judiciary
       AN  ACT to amend the civil practice law and rules, in relation to manda-
         tory settlement conferences in  residential  foreclosure  actions  and
         requiring  good  faith  settlement discussions in connection with such
         foreclosure actions
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1. Subdivision (a) of rule 3408 of the civil practice law and
    2  rules, as amended by chapter 306 of the laws of 2013, is amended to read
    3  as follows:
    4    (a) In any residential foreclosure action involving  a  home  loan  as
    5  such  term is defined in section thirteen hundred four of the real prop-
    6  erty actions and proceedings law, in which the defendant is  a  resident
    7  of  the  property  subject to foreclosure, plaintiff shall file proof of
    8  service within twenty days of such service, however service is made, and
    9  the court shall hold a mandatory conference within sixty days after  the
   10  date  when proof of service upon such defendant is filed with the county
   11  clerk, or on such adjourned date as has been agreed to by  the  parties,
   12  for  the  purpose  of  holding  settlement discussions pertaining to the
   13  relative rights and obligations of the parties under the  mortgage  loan
   14  documents, including, but not limited to determining whether the parties
   15  can  reach  a  mutually agreeable resolution to help the defendant avoid
   16  losing his or her home, and evaluating the potential for a resolution in
   17  which payment schedules or amounts may  be  modified  or  other  workout
   18  options  may  be  agreed  to,  and for whatever other purposes the court
   19  deems appropriate.  BOTH THE PLAINTIFF AND THE DEFENDANT MUST MAKE  GOOD
   20  FAITH  EFFORTS TO REACH A MUTUALLY AGREEABLE RESOLUTION. SUCH GOOD FAITH
   21  EFFORTS MUST INCLUDE, AT A MINIMUM, FOLLOWING THE UNITED STATES  DEPART-
   22  MENT  OF TREASURY HOME AFFORDABLE MODIFICATION PROGRAM GUIDELINES ISSUED
   23  ON MARCH FOURTH, TWO THOUSAND NINE, AND ANY AMENDMENTS THERETO.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD09517-01-5
       A. 6283                             2
    1    S 2. Subdivision (a) of rule 3408 of the civil practice law and rules,
    2  as added by chapter 472 of the laws of  2008,  is  amended  to  read  as
    3  follows:
    4    (a)  In  any residential foreclosure action involving a high-cost home
    5  loan consummated between January first, two thousand three and September
    6  first, two thousand eight, or a subprime or nontraditional home loan, as
    7  those terms are defined under section thirteen hundred four of the  real
    8  property  actions and proceedings law, in which the defendant is a resi-
    9  dent of the property subject to foreclosure,  the  court  shall  hold  a
   10  mandatory  conference  within  sixty  days  after the date when proof of
   11  service is filed with the county clerk, or on such adjourned date as has
   12  been agreed to by the parties, for the  purpose  of  holding  settlement
   13  discussions  pertaining  to  the  relative rights and obligations of the
   14  parties under the mortgage loan documents, including, but not limited to
   15  determining whether the parties can reach a  mutually  agreeable  resol-
   16  ution to help the defendant avoid losing his or her home, and evaluating
   17  the potential for a resolution in which payment schedules or amounts may
   18  be  modified or other workout options may be agreed to, and for whatever
   19  other purposes the court deems appropriate.  BOTH THE PLAINTIFF AND  THE
   20  DEFENDANT  MUST  MAKE  GOOD  FAITH EFFORTS TO REACH A MUTUALLY AGREEABLE
   21  RESOLUTION. SUCH GOOD FAITH EFFORTS MUST INCLUDE, AT A MINIMUM,  FOLLOW-
   22  ING  THE  UNITED STATES DEPARTMENT OF TREASURY HOME AFFORDABLE MODIFICA-
   23  TION PROGRAM GUIDELINES ISSUED ON MARCH FOURTH, TWO THOUSAND  NINE,  AND
   24  ANY AMENDMENTS THERETO.
   25    S  3.  This act shall take effect immediately; provided, however, that
   26  the amendments to subdivision (a) of rule 3408 of the civil practice law
   27  and rules made by section one of this act shall be subject to the  expi-
   28  ration  and  reversion  of such subdivision pursuant to subdivision e of
   29  section 25 of chapter 507 of the laws of 2009,  as  amended,  when  upon
   30  such date the provisions of section two of this act shall take effect.