Bill Text: NY A10898 | 2019-2020 | General Assembly | Introduced
Bill Title: Prohibits the registration of mortgages in default prior to the filing of a notice of pendency.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2020-08-17 - referred to judiciary [A10898 Detail]
Download: New_York-2019-A10898-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 10898 IN ASSEMBLY August 17, 2020 ___________ Introduced by COMMITTEE ON RULES -- (at request of M. of A. Peoples- Stokes, Weinstein) -- read once and referred to the Committee on Judi- ciary 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 EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD16983-01-0A. 10898 2 1 agents are prohibited from passing along such fines to the mortgagor in 2 default. 3 8. The provisions of this section shall supersede any local law, ordi- 4 nance, or resolution requiring the registration of mortgages in default 5 that was enacted prior to the effective date of this section. 6 § 2. This act shall take effect immediately.