What's happening
This bill requires non-natural persons to file a mortgage ownership assignment document when recording mortgage transfers, with penalties for noncompliance.
Why it matters
Increases transparency in property ownership. By requiring non-natural persons (such as corporations, LLCs, or trusts) to file a detailed mortgage ownership assignment document, the bill makes it easier for the public and government entities to identify the true parties behind mortgage transactions, which can help combat fraud and clarify property records.
Standardizes documentation and deadlines. The legislation introduces a uniform form and a strict 90-day deadline for recording mortgage transfers or assignments, reducing ambiguity and the potential for administrative errors or delays that can complicate real estate transactions.
Imposes financial penalties for noncompliance. Entities that fail to file the required documentation on time face a $250 civil penalty, creating a financial incentive for prompt and accurate reporting, which can strengthen property record integrity and support the operations of local recording offices.
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Who cares
- Likely support
Recording officers
They would have to reject mortgages or mortgage assignments made by non-natural persons unless accompanied by the required ownership assignment document and fee, and would assess penalties to support their operations.
Banks and other corporate mortgage lenders
They would have to provide an ownership assignment document listing contact information, an authorized representative and the date the mortgage was acknowledged or proved.
Corporate mortgage assignees
They would face a $250 civil penalty for failing to record a covered mortgage assignment within 90 days after its acknowledgment or proof.
Headline styles
Require Proof for Mortgage Transfers
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
History
- Ordered to third reading cal.100
- Advanced to third reading cal.378
- Reported
- Reported referred to codes
- 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.
Require Mortgage Ownership Document
In Senate Committee · Judiciary · Sponsor José Peralta
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1387
2017-2018 Regular Sessions
IN ASSEMBLY
January 12, 2017
Introduced by M. of A. WEINSTEIN, ABINANTI, HYNDMAN, SIMANOWITZ -- read once and referred to the Committee on Judiciary
AN ACT to amend the real property law, in relation to the recording of a transfer or assignment of a mortgage interest
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The real property law is amended by adding a new section 291-k to read as follows:
§ 291-k. Recording of transfers and assignments of mortgages; mortgage ownership assignment document. 1. A recording officer shall not record or accept for recording any mortgage or assignment of mortgage made by a non-natural person affecting land in this state unless accompanied by a mortgage ownership assignment document in a form prescribed by this section and the fee prescribed pursuant to section eight thousand twenty-one of the civil practice law and rules. Such form shall be recorded no later than ninety days after the date of the acknowledgment or proof of such instrument.
2. The form of the Mortgage Ownership Assignment Document shall be as follows:
Mortgage Ownership Assignment Document
Name of mortgagee or assignee:
________________________________________________________________________
Address:
________________________________________________________________________
Phone number:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00075-01-7
A. 1387 2
________________________________________________________________________
Date that mortgage or assignment was acknowledged or proved:
________________________________________________________________________
Authorized representative of mortgagee or assignee:
________________________________________________________________________
3. Failure to record a mortgage or assignment of mortgage made by a non-natural person affecting land in this state by the date specified in subdivision one of this section, shall subject the mortgagee or assignee who fails to comply with this section to a civil penalty of two hundred fifty dollars. The penalty shall be assessed by, and payable to, the recording officer. Penalties collected pursuant to this subdivision shall be used to support recording officer operations.
§ 2. This act shall take effect on the ninetieth day after it shall have become a law and shall apply to all mortgages or assignments of mortgages executed on or after such date.
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.