What's happening
This bill makes mortgage investing institutions financially responsible for penalties or interest caused by their erroneous mortgage tax registrations.
Why it matters
Shifts financial accountability to mortgage institutions. This amendment means banks and other mortgage investors (or their vendors) will be directly liable for costs resulting from their own filing mistakes, rather than property owners being stuck with penalties or interest due to administrative errors.
Increases incentive for accurate mortgage tax registration. By making institutions pay for errors, the law encourages greater diligence and accuracy in how mortgage escrow accounts and tax registrations are handled, potentially reducing mistakes that cause financial harm to homeowners.
Provides protection and recourse for property owners. Homeowners who previously had limited means to contest or recover fees from errors outside their control will have clearer grounds to demand compensation from the responsible institution or vendor.
Potentially impacts mortgage servicing practices and costs. Institutions may change internal procedures, vet vendors more carefully, or adjust fees to account for the new financial risk, which could alter the way mortgages are serviced or priced in New York.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Banks Pay for Mortgage Errors
Plain English, a few words. Used as the page title.
Sponsors
3 Co-sponsors
2 Multi-sponsors
History
- Held for consideration in banks
- Referred to banks
- Referred to banks
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2220
2017-2018 Regular Sessions
IN ASSEMBLY
January 17, 2017
Introduced by M. of A. MONTESANO, CROUCH, McDONOUGH, LAWRENCE -- Multi- Sponsored by -- M. of A. DiPIETRO, THIELE -- read once and referred to the Committee on Banks
AN ACT to amend the real property tax law, in relation to requiring mortgage investing institutions or their contracted vendors to be financially responsible for any interest or penalties charged as a result of an erroneous mortgage registration filed by such institution or vendor
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 953 of the real property tax law is amended by adding a new subdivision 8-b to read as follows:
8-b. Any mortgage investing institution or its contracted vendor which does not comply with the provisions of subdivision eight of this section when a mortgage investing institution or its contracted vendor files a registration of mortgage with the collecting officer for an escrow amount relative to a taxable parcel and that registration proves to be erroneous, the mortgage investing institution or its contracted vendor shall be financially responsible for interest or penalties charged a property owner by a taxing municipality, county, and/or delinquent tax enforcement agency for non-payment or late payment of real property taxes due to the erroneous registration.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06090-01-7
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.