What's happening
This bill requires non-natural persons to file a specific mortgage ownership assignment document when recording mortgage transfers or assignments, imposing penalties for non-compliance.
Why it matters
Increases transparency and accountability. By requiring non-natural persons (such as corporations, LLCs, or trusts) to file a detailed mortgage ownership assignment document, this bill makes it easier for the public, regulators, and homeowners to identify who actually owns or controls a mortgage.
Aims to reduce confusion in foreclosure and property disputes. The clear documentation of mortgage ownership may help prevent legal challenges and delays that often arise in foreclosure proceedings when ownership is unclear or contested.
Imposes a financial penalty for non-compliance. A $250 civil penalty for failing to file the required document within 90 days creates a tangible incentive for timely and accurate reporting, potentially leading to better record-keeping industry-wide.
Supports local government operations. The money collected from penalties is directed to fund the operations of local recording offices, potentially improving public services and administrative efficiency.
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Who cares
Headline styles
Require Mortgage Ownership Document
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to judiciary
- 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 Proof for Mortgage Transfers
Assembly Floor Calendar · Sponsor Helene Weinstein
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
475
2017-2018 Regular Sessions
IN SENATE (Prefiled)
January 4, 2017
Introduced by Sen. PERALTA -- read twice and ordered printed, and when printed to be committed 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:
________________________________________________________________________
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00075-01-7
S. 475 2
Phone number:
________________________________________________________________________
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.
Sponsor's memo
Title of bill
An act to amend the real property law, in relation to the recording of a transfer or assignment of a mortgage interest
Purpose of bill
To require parties to record an ownership transfer document with the County Clerk or City Register when there is an assignment or transfer of the ownership of the mortgage note which convey the right to receive mortgage payments.
Summary of provisions of bill
This bill amends the Real Property Law by adding a new section 291-n. This bill requires any recording of a mortgage or assignment of a mortgage made to a non-natural person affecting land in the state to be accompanied by a mortgage ownership transfer document. Further, this bill contains the "mortgage ownership transfer document" and creates a civil penalty of $250 for failure to record a mortgage or assignment.
Justification
The recording statutes have been eclipsed by the passage of time and no longer contain a complete public record of the ownership of real property. The changing business practices of the mortgage industry have led to the free trading of the legal instruments which represent the right to collect the stream of mortgage payments from real property borrowers. Private record keeping entities keep a real time record of such transactions to facilitate real time trading. However, the recording statutes have been interpreted by the courts as not requiring parties to record ownership interests. Thus, borrowers can no longer ascertain the identity of the owner{s) of their promissory notes through simple access to the public record. This prevents ready communication between the homeowner and the owner of their legal instruments. In this time of turmoil in housing and mortgage lending, this inability to contact the actual owner of their mortgage note leaves a distressed borrower unable to contact their note owner. This situation requires an update to the recording statutes so they can once again perform their purpose of recording the ownership interests of real property.
In order for these amendments to be meaningful, each new owner of the legal instruments will be required to record their name - whether business or personal, the address and current phone number on the transferor assignment form. Any agent of such new owner who physically records such interest must record the assignment or transfer in the name of the actual owner.
Legislative history
2015-2016-S.1278 2013-2014 -S.44 2011-12: S.667-B 2009 - Referred to Judiciary
Fiscal implications for state and local governments
Undetermined.
Effective date
Ninety days after becoming law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.