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Sponsors
1 Co-sponsor
History
- Referred to judiciary
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Prohibits mortgagee from refusing to accept partial mortgage payments
In Assembly Committee · Judiciary · Sponsor Eric Stevenson
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S6541
Title of bill
An act to amend the real property law, in relation to prohibiting mort- gagee from refusing to accept partial mortgage payments
Purpose
To require that banks, lenders and mortgagees accept partial mortgage payments which represent at a minimum a mortgage payment but not the total arrearages that may be due and owing.
Summary of provisions
It has become apparent that banks, lenders and mortgagees have taken the position that they will not accept mortgage payments under circumstances where those payments fail to bring the mortgage current.
In some instances they accept payments but do not apply them to the outstanding arrearages and place them in a suspension account where they hold the funds but do not apply them to the arrearages.
Justification
Due to the state of the economy many people may find themselves in dire straits, due to lost of employment, under employment, or illness and despite these circumstances are still attempting to pay their mortgage obligations and many may fall into arrears.
The banks, lenders or mortgagees have taken the position that they will only accept the total amount of the arrearages or if they do take a payment they will not apply it to the outstanding indebtedness while placing it into a special account which gains interest; but neither the payment or interest is credited to the mortgagor's arrearages on their mortgage.
The provisions of this proposed section will allow payments to be received and credited and will not act as a bar to any procedural rights of the banks, lenders or mortgagees.
The aim of this bill is to forestall foreclosures and give mortgagor's an incentive and opportunity to redeem their property; and limit the destructive effects of foreclosure and its concomitant societal concerns.
Legislative history
New Bill.
Fiscal implications
None.
Effective date
Takes effect on the thirtieth day after it shall become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.