Bill Text: NY A07386 | 2023-2024 | General Assembly | Introduced

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Bill Title: Relates to preventing fraudulent deed transfers; protects home owners from being misled into transferring their home to mortgage servicers.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-01-03 - referred to judiciary [A07386 Detail]

Download: New_York-2023-A07386-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          7386

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                      May 19, 2023
                                       ___________

        Introduced by M. of A. LAVINE -- read once and referred to the Committee
          on Judiciary

        AN  ACT  to amend the real property law and the banking law, in relation
          to preventing fraudulent deed transfers

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

     1    Section 1. Section 333 of the real property law is amended by adding a
     2  new subdivision 4 to read as follows:
     3    4.  A  recording  officer  shall  not  record or accept for record any
     4  conveyance of real property affecting land in New York state unless such
     5  conveyance contains,  or  is  accompanied  by  an  addendum  containing,
     6  explicit  and  bold language that reads, "YOU ARE HEREBY MADE AWARE THAT
     7  BY SIGNING THIS DEED YOU ARE TRANSFERRING  OWNERSHIP  OF  YOUR  LAND  OR
     8  HOME",  with  a signature line under such language which shall contain a
     9  notarized signature of the transferor.  Failure of a  person  or  corpo-
    10  ration  to use a deed without such warning language or if the transferor
    11  does not sign the acknowledgement to complete such deed transfer  pursu-
    12  ant to this section shall be a class E felony.
    13    §  2. Section 6-n of the banking law is amended by adding a new subdi-
    14  vision 3 to read as follows:
    15    3. No deed transfer from a borrower to a  mortgage  servicer  that  is
    16  transferred as part of a modification of mortgage terms shall be consid-
    17  ered  a  valid deed transfer. The department shall have the authority to
    18  investigate any deed transfer that is in violation of this subdivision.
    19    § 3. Subdivision 1 of section 14 of the  banking  law  is  amended  by
    20  adding a new paragraph (t) to read as follows:
    21    (t)  To prescribe the methods and standards under which the department
    22  shall receive and  investigate  claims  of  fraudulent  deed  transfers,
    23  including,  but  not  limited to deed transfers that are in violation of
    24  subdivision three of section six-n of this chapter.
    25    § 4. This act shall take effect immediately.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03255-01-3