What's happening
This bill requires lenders to submit a signed affidavit proving mortgage ownership before starting foreclosure and criminalizes false statements.
Why it matters
Raises the burden of proof for lenders. by requiring a signed affidavit attesting to legal ownership of the mortgage before foreclosure can even begin, potentially reducing wrongful or mistaken foreclosures.
Protects homeowners from fraudulent or predatory foreclosure actions. by making it a criminal offense (class E felony) to knowingly submit a false affidavit about mortgage ownership, providing a legal deterrent against misrepresentation.
Could slow down the foreclosure process. for lenders, as they must gather and verify proper documentation before proceeding, possibly giving homeowners more time to seek alternatives or correct errors.
Increases accountability and transparency in the foreclosure system. , aiming to ensure that only legitimate, documented mortgage holders can initiate foreclosure, which may strengthen trust in the legal process for affected borrowers.
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Who cares
Lenders, mortgage assignees and mortgage loan servicers
They would have to submit a signed affidavit stating they have a bond or note secured by the property's mortgage at least 30 days before starting foreclosure proceedings.
Property owners facing mortgage foreclosure
The bill would require the foreclosing party to attest to having the secured bond or note before commencing the case.
Courts handling mortgage foreclosures
They would receive the required affidavits at least 30 days before foreclosure proceedings begin.
People signing foreclosure affidavits
Knowingly making a false statement in the required affidavit would be a class E felony.
Headline styles
Require Foreclosure Affidavit
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to housing, construction and community development
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 Affidavit Before Foreclosure
In Assembly Committee · Judiciary · Sponsor Marcos Crespo
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4882
2017-2018 Regular Sessions
IN SENATE
March 3, 2017
Introduced by Sen. DIAZ -- read twice and ordered printed, and when printed to be committed to the Committee on Housing, Construction and Community Development
AN ACT to amend the real property actions and proceedings law, in relation to requiring lenders, assignees and mortgage loan servicers to submit an affidavit to the court prior to commencing foreclosure proceedings
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The real property actions and proceedings law is amended by adding a new section 1304-a to read as follows:
§ 1304-a. Required affidavit. 1. Notwithstanding any other provision of law, at least thirty days before a lender, an assignee or a mortgage loan servicer commences a mortgage foreclosure proceeding, such lender, assignee or mortgage loan servicer shall provide the court in which they are bringing such action, a signed affidavit that such lender, assignee or mortgage loan servicer has a bond or note secured by a mortgage on such real property.
2. A false statement contained in such affidavit shall constitute a violation of this section. Any person who knowingly violates the provisions of this section shall be guilty of a class E felony.
§ 2. This act shall take effect on the first of November next succeeding the date on which it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07242-01-7
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 actions and proceedings law, in relation to requiring lenders, assignees and mortgage loan servicers to submit an affidavit to the court prior to commencing foreclosure proceedings
Purpose or general idea of the bill
Requires a signed affidavit prior to the commencement of any foreclosure proceeding. Establishes a class E felony for knowingly violating the provisions of this section.
Summary of provisions
Section 1. Amends the real property actions and proceedings law by adding a new section, 1304-a. Requires a lender, assignee or a mortgage loan servicer to provide the court a signed affidavit that such lender, assignee or mortgage loan servicer has a bond or note secured by a mortgage on such real property. Provides that any person who knowingly violates this section shall be guilty of a class E felony.
Section 2. Effective Date
Existing law
Current statute requires a ninety-day prior notice to the borrower that such borrower could lose his or her home.
Justification
While foreclosures have leveled off in most of New York City, unfortunately in the Bronx, the problem still persists at crisis levels. The cover story in the Bronx Free Press on September 21, 2011 stated in part that: "According to Census data from 2009, the Bronx is not only the poorest borough in the city, but the South Bronx specifically is the poorest district in the country with 256,544 individuals or 38 percent of the population living below the poverty line. This translates to Bronx County having the lowest home ownership rates in New York City, at 20.7 percent - while simultaneously holding the city's highest foreclosure rate: an average of 27.7 foreclosures per 1,000 homeowners in 2010, as noted in a March 2011 report published by the New York State Comptroller's office."
Additionally, the $25 million allocation specifically intended for legal services for foreclosure cases was eliminated from the 2011-2012 State Budget.
While this funding should be restored, steps must be taken to prevent foreclosures before they occur. This legislation will require any entity which holds a bond or note secured by a mortgage to file a signed affidavit that such entity in fact owns such real property. The bill is based on a law which was recently enacted in Nevada, which saw a 92% drop in foreclosure rates as a result of the new law.
Legislative history
2016: S.265 - REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT/A.6549 - referred to judiciary 2015: S.265 - REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT/A.6549 - referred to judiciary 2014: S.315 - Referred to Housing, Construction and Community Development/A.162 - Referred to Judiciary 2013: S.315 - Referred to Housing, Construction and Community Development/A.162 - Referred to Judiciary 2012: S.6017 - Notice of Committee Consideration Requested, Committee Discharged and Committed to Rules/A.9109 - Referred to Judiciary
Fiscal implications
None to State.
Effective date
The first of November next succeeding the date on which it shall have become law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.