Bill Text: NY S02143 | 2021-2022 | General Assembly | Amended

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Bill Title: Provides that any person who has been injured by reason of any violation of any such rules, regulations or policies as the superintendent may promulgate may bring an action in his or her own name; assert a counterclaim; or, if an action is commenced by the mortgagee or anyone acting on its behalf, bring a third party claim, against either the mortgagee and/or the mortgage servicer to enjoin any violations thereof; authorizes damages; makes related provisions.

Spectrum: Partisan Bill (Democrat 8-0)

Status: (Engrossed - Dead) 2022-05-03 - referred to banks [S02143 Detail]

Download: New_York-2021-S02143-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         2143--A

                               2021-2022 Regular Sessions

                    IN SENATE

                                    January 20, 2021
                                       ___________

        Introduced  by  Sens.  KAVANAGH,  BRISPORT,  SANDERS  --  read twice and
          ordered printed, and when printed to be committed to the Committee  on
          Banks  --  committee  discharged,  bill  amended, ordered reprinted as
          amended and recommitted to said committee

        AN ACT to amend the banking law, in relation to mortgage loan servicers

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

     1    Section  1.  Section 595-b of the banking law is amended by adding two
     2  new subdivisions 3 and 4 to read as follows:
     3    3. Actions and damages. (a) Any person who has been injured by  reason
     4  of  any  violation  of  any  such  rules, regulations or policies as the
     5  superintendent may promulgate to effectuate the purposes of  this  arti-
     6  cle,  including  but  not  limited  to  3  NYCRR 419 or any subsequently
     7  promulgated mortgage servicing rules pursuant to this subdivision, may:
     8    (i) Bring an action in his or her own name;
     9    (ii) Assert a counterclaim; or
    10    (iii) If an action is commenced by the mortgagee or anyone  acting  on
    11  its  behalf,  bring  a  third  party claim, against either the mortgagee
    12  and/or the mortgage servicer to enjoin any violations thereof.
    13    (b) The person injured pursuant to this section:
    14    (i)  May  recover  statutory  damages  of  one  thousand  dollars  per
    15  violation;
    16    (ii) May recover treble actual damages; and
    17    (iii)  If awarded damages or injunctive relief, shall also be entitled
    18  to recover costs and expenses, including but not limited  to  reasonable
    19  attorneys' fees.
    20    (c)  The  mortgagee  and  the  mortgage  servicer shall be jointly and
    21  severally liable for any recoveries  by  an  injured  mortgagor  in  any
    22  action brought pursuant to this subdivision.
    23    4. Compliance with rules, regulations or policies. Compliance with any
    24  such rules, regulations or policies as the superintendent may promulgate

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05771-02-1
        S. 2143--A                          2

     1  to effectuate the purposes of this article, including but not limited to
     2  3  NYCRR  419  or  any subsequently promulgated mortgage servicing rules
     3  pursuant to this subdivision, shall be a condition precedent to commenc-
     4  ing an action to foreclose upon a mortgage subject to this article or an
     5  action  on  the  note,  and the failure to comply with such rules, regu-
     6  lations or policies shall be a defense to a foreclosure action or action
     7  on the note, even if servicing has been transferred to a different mort-
     8  gage servicer when a  foreclosure  action  or  action  on  the  note  is
     9  commenced.
    10    § 2. This act shall take effect immediately.