Bill Text: NY S05785 | 2021-2022 | General Assembly | Amended

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Bill Title: Makes the affirmative allegation provisions for high-cost loans and subprime home loans applicable to foreclosures of residential mortgages covering one to four family dwellings.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2021-08-02 - APPROVAL MEMO.16 [S05785 Detail]

Download: New_York-2021-S05785-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         5785--A
            Cal. No. 919

                               2021-2022 Regular Sessions

                    IN SENATE

                                     March 18, 2021
                                       ___________

        Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
          printed to be committed to the Committee on Housing, Construction  and
          Community  Development  --  reported  favorably  from  said committee,
          ordered to first and second report, ordered to a third reading, passed
          by Senate and delivered to the Assembly, recalled, vote  reconsidered,
          restored  to  third  reading, amended and ordered reprinted, retaining
          its place in the order of third reading

        AN ACT to amend the  real  property  actions  and  proceedings  law,  in
          relation  to foreclosure of residential mortgages covering one to four
          family dwellings

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

     1    Section  1.  Section 1302 of the real property actions and proceedings
     2  law, as amended by chapter 472 of the laws of 2008, is amended  to  read
     3  as follows:
     4    §  1302. Foreclosure of [high-cost home loans and subprime home loans]
     5  certain residential mortgages. 1.  Any complaint served in a  proceeding
     6  initiated on a residential mortgage covering a one to four family dwell-
     7  ing  pursuant  to  this  article [relating to a high-cost home loan or a
     8  subprime home loan, as such terms are defined in section six-l and six-m
     9  of the banking law, respectively,] must contain an  affirmative  allega-
    10  tion that at the time the proceeding is commenced, the plaintiff:
    11    (a)  is  the owner and holder of the subject mortgage and note, or has
    12  been delegated the authority to institute a mortgage foreclosure  action
    13  by the owner and holder of the subject mortgage and note; and
    14    (b)  has  complied  with all of the provisions of section five hundred
    15  ninety-five-a of the banking law and any rules and  regulations  promul-
    16  gated  thereunder,  section six-l or six-m of the banking law, for loans
    17  governed by those provisions, and section thirteen hundred four of  this
    18  article.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00013-03-1
        S. 5785--A                          2

     1    2.  It  shall be a defense to an action to foreclose a mortgage [for a
     2  high-cost home loan or subprime home loan] that the terms  of  the  home
     3  loan or the actions of the lender violate any provision of section six-l
     4  or  six-m  of  the  banking law or section thirteen hundred four of this
     5  article.
     6    §  2. This act shall take effect on the first of January next succeed-
     7  ing the date on which it shall have become a  law  and  shall  apply  to
     8  actions commenced on or after such date.