What's happening
This bill expands foreclosure complaint requirements and defenses from just high-cost or subprime loans to all mortgages.
Why it matters
Expands homeowner protections. By extending foreclosure complaint requirements and defenses to all mortgages, not just high-cost or subprime loans, the bill gives a broader group of homeowners legal tools to challenge improper or unlawful foreclosure actions.
Raises standards for lenders. All mortgage lenders will now have to prove in court that they are the true owner or authorized agent of the mortgage and that they have complied with key consumer protection laws before foreclosing, increasing accountability in the foreclosure process.
Potentially slows foreclosure process. The need for more detailed complaints and new available defenses may lengthen foreclosure proceedings, giving homeowners more time to seek legal help, negotiate alternatives, or resolve disputes.
May reduce risk of wrongful foreclosures. By requiring compliance with a broader set of laws for all mortgages, the bill aims to ensure fairer treatment and could help prevent technical errors or abuses that might otherwise result in someone losing their home unnecessarily.
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Who cares
Headline styles
Expand Foreclosure Complaint Rules
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
History
- Ordered to third reading cal.96
- Advanced to third reading cal.67
- Reported
- 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.
Expand Foreclosure Safeguards
In Senate Committee · Housing, Construction And Community Development · Sponsor Tony Avella
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1371
2017-2018 Regular Sessions
IN ASSEMBLY
January 11, 2017
Introduced by M. of A. WEINSTEIN, HYNDMAN, ABINANTI -- read once and referred to the Committee on Judiciary
AN ACT to amend the real property actions and proceedings law, in relation to foreclosure of mortgages
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 1302 of the real property actions and proceedings law, as amended by chapter 472 of the laws of 2008, is amended to read as follows:
§ 1302. Foreclosure of [high-cost home loans and subprime home loans] mortgages. 1. Any complaint served in a proceeding initiated pursuant to this article [relating to a high-cost home loan or a subprime home loan, as such terms are defined in section six-l and six-m of the banking law, respectively,] must contain an affirmative allegation that at the time the proceeding is commenced, the plaintiff:
(a) is the owner and holder of the subject mortgage and note, or has been delegated the authority to institute a mortgage foreclosure action by the owner and holder of the subject mortgage and note; and
(b) has complied with all of the provisions of section five hundred ninety-five-a of the banking law and any rules and regulations promulgated thereunder, section six-l or six-m of the banking law, and section thirteen hundred four of this article.
2. It shall be a defense to an action to foreclose a mortgage [for a high-cost home loan or subprime home loan] that the terms of the home loan or the actions of the lender violate any provision of section six-l or six-m of the banking law or section thirteen hundred four of this article.
§ 2. This act shall take effect on the first of January next succeeding the date on which it shall have become a law and shall apply to actions commenced on or after such date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02864-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.