Bill Text: NY A10629 | 2011-2012 | General Assembly | Introduced

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Bill Title: Enacts "the foreclosure fraud prevention act of 2012"; creates the crimes of residential mortgage foreclosure fraud in the first and second degrees.

Spectrum: Partisan Bill (Democrat 31-0)

Status: (Engrossed - Dead) 2012-06-21 - REFERRED TO RULES [A10629 Detail]

Download: New_York-2011-A10629-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         10629
                                 I N  A S S E M B L Y
                                     June 11, 2012
                                      ___________
       Introduced  by  COMMITTEE ON RULES -- (at request of M. of A. Weinstein,
         Lentol, V. Lopez, P. Rivera, Robinson, Colton, Hooper, Clark,  Lavine,
         Weprin, Rosenthal, M. Miller, Abinanti, Weisenberg, Barrett, Brindisi,
         Bronson,  Zebrowski,  Roberts,  Russell,  Ramos, Gabryszak, Skartados,
         Cymbrowitz) -- (at request of the Department of Law) -- read once  and
         referred to the Committee on Codes
       AN  ACT to amend the penal law, in relation to enacting the "foreclosure
         fraud prevention act of 2012"
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.  This act shall be known and may be cited as the "foreclo-
    2  sure fraud prevention act of 2012."
    3    S 2. Section 187.00 of the penal law is amended by  adding  seven  new
    4  subdivisions 5, 6, 7, 8, 9, 10 and 11 to read as follows:
    5    5.  "RESIDENTIAL  MORTGAGE FORECLOSURE FRAUD" IS COMMITTED BY A PERSON
    6  WHO, BEING AN AGENT OF A RESIDENTIAL MORTGAGE BUSINESS ACTING WITHIN THE
    7  SCOPE OF HIS OR HER EMPLOYMENT, INTENTIONALLY ENGAGES IN FRAUD OR DECEP-
    8  TION BY AUTHORIZING, PREPARING, EXECUTING, OFFERING  OR  PRESENTING  FOR
    9  FILING ANY WRITTEN INSTRUMENT WHICH SUCH PERSON:
   10    (A) KNOWS CONTAINS A MATERIAL FALSE STATEMENT, MATERIAL FALSE INFORMA-
   11  TION OR A MATERIAL OMISSION; AND
   12    (B)  KNOWS  OR  BELIEVES  WILL  BE  FILED WITH A COURT OR OTHER PUBLIC
   13  OFFICE OR PUBLIC SERVANT, INCLUDING BUT NOT LIMITED TO A FEDERAL,  STATE
   14  OR  LOCAL  AGENCY, DEPARTMENT OR BUREAU, IN SUPPORT OF OR IN CONJUNCTION
   15  WITH A PENDING OR PROSPECTIVE RESIDENTIAL MORTGAGE FORECLOSURE ACTION.
   16    6. "AGENT" SHALL HAVE THE SAME MEANING AS PROVIDED IN PARAGRAPH (A) OF
   17  SUBDIVISION ONE OF SECTION 20.20 OF THIS CHAPTER.
   18    7. "HIGH MANAGERIAL AGENT" SHALL HAVE THE SAME MEANING AS PROVIDED  IN
   19  PARAGRAPH (B) OF SUBDIVISION ONE OF SECTION 20.20 OF THIS CHAPTER.
   20    8.  "WRITTEN  INSTRUMENT"  SHALL  HAVE THE SAME MEANING AS PROVIDED IN
   21  SUBDIVISION THREE OF SECTION 175.00 OF THIS PART.
   22    9. "RESIDENTIAL MORTGAGE BUSINESS" MEANS A LENDER OR ANY  OTHER  PART-
   23  NERSHIP,  CORPORATION, COMPANY, TRUST OR ASSOCIATION ENGAGED IN WHOLE OR
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD16190-02-2
       A. 10629                            2
    1  IN PART IN THE BUSINESS OF ORIGINATING, GRANTING, SERVICING OR FORECLOS-
    2  ING UPON RESIDENTIAL MORTGAGE LOANS.
    3    10.  "LENDER"  MEANS  A MORTGAGE BANKER AS DEFINED IN PARAGRAPH (F) OF
    4  SUBDIVISION ONE OF SECTION FIVE HUNDRED NINETY OF THE BANKING LAW OR  AN
    5  EXEMPT  ORGANIZATION  AS  DEFINED IN PARAGRAPH (E) OF SUBDIVISION ONE OF
    6  SECTION FIVE HUNDRED NINETY OF THE BANKING LAW.
    7    11. "RESIDENTIAL MORTGAGE FORECLOSURE ACTION" MEANS AN ACTION  BROUGHT
    8  PURSUANT  TO  THE REAL PROPERTY ACTIONS AND PROCEEDINGS LAW TO FORECLOSE
    9  UPON A RESIDENTIAL MORTGAGE LOAN.
   10    S 3. The penal law is amended by adding two new  sections  187.30  and
   11  187.35 to read as follows:
   12  S 187.30 RESIDENTIAL MORTGAGE FORECLOSURE FRAUD IN THE SECOND DEGREE.
   13    A  PERSON  IS  GUILTY OF RESIDENTIAL MORTGAGE FORECLOSURE FRAUD IN THE
   14  SECOND DEGREE WHEN HE OR SHE COMMITS  RESIDENTIAL  MORTGAGE  FORECLOSURE
   15  FRAUD.
   16    RESIDENTIAL MORTGAGE FORECLOSURE FRAUD IN THE SECOND DEGREE IS A CLASS
   17  A MISDEMEANOR.
   18  S 187.35 RESIDENTIAL MORTGAGE FORECLOSURE FRAUD IN THE FIRST DEGREE.
   19    A  PERSON  IS  GUILTY OF RESIDENTIAL MORTGAGE FORECLOSURE FRAUD IN THE
   20  FIRST DEGREE WHEN:
   21    1. AS PART OF A SYSTEMATIC ONGOING  COURSE  OF  CONDUCT,  SUCH  PERSON
   22  ENGAGES IN THE CONDUCT PROHIBITED BY SECTION 187.30 OF THIS ARTICLE WITH
   23  RESPECT  TO  FIVE  OR  MORE  PENDING OR PROSPECTIVE RESIDENTIAL MORTGAGE
   24  FORECLOSURE ACTIONS WITHIN A ONE-YEAR PERIOD; OR
   25    2. BEING A HIGH MANAGERIAL AGENT OF A RESIDENTIAL  MORTGAGE  BUSINESS,
   26  HE OR SHE:
   27    (A)  KNOWS  OR  REASONABLY SHOULD KNOW THAT ONE OR MORE AGENTS OF SUCH
   28  BUSINESS ARE ENGAGED IN THE CONDUCT PROHIBITED  BY  SUBDIVISION  ONE  OF
   29  THIS SECTION; AND
   30    (B)  RECKLESSLY  TOLERATES  SUCH  CONDUCT  OR  OTHERWISE FAILS TO TAKE
   31  REASONABLE MEASURES TO PREVENT IT FROM CONTINUING.
   32    RESIDENTIAL MORTGAGE FORECLOSURE FRAUD IN THE FIRST DEGREE IS A  CLASS
   33  E FELONY.
   34    S  4.  This  act shall take effect on the ninetieth day after it shall
   35  have become a law.