What's happening
This bill prohibits mortgage lenders in New York from refusing to accept partial mortgage payments from borrowers.
Why it matters
Helps struggling homeowners avoid immediate foreclosure. by allowing them to make partial payments, which may reduce late fees, default notices, and the risk of losing their homes when they cannot pay the full amount due.
Limits lender power and increases borrower leverage. by preventing mortgage holders from rejecting partial payments, effectively giving borrowers more flexibility in managing temporary financial hardships.
Protects existing legal rights of borrowers. since the bill explicitly states that it does not limit any other contractual or statutory remedies available to mortgagors, ensuring this new protection works alongside other consumer safeguards.
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
Mortgage borrowers behind on payments
The bill would require mortgagees to accept partial payments even when those payments do not bring borrowers current on their mortgage debt.
Banks and other mortgage lenders
Mortgagees would be barred from refusing partial payments that leave an outstanding amount due.
Borrower advocates and legal aid attorneys
The bill would preserve borrowers’ other contractual and statutory rights and remedies alongside the partial-payment requirement.
Headline styles
Require Acceptance of Partial Payments
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- 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 Partial Mortgage Payments
In Assembly Committee · Judiciary · Sponsor Michele Titus
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4954
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 Judiciary
AN ACT to amend the real property law, in relation to prohibiting mortgagee from refusing to accept partial mortgage payments
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 254-e to read as follows:
§ 254-e. Refusal by mortgagee to accept partial mortgage payments. 1. No mortgagee shall refuse to accept a partial payment of an entire amount due from a mortgagor which does not bring the mortgagor current on his or her mortgage debt.
2. The provisions of this section shall not bar any other contractual or statutory rights or remedies available to a mortgagor.
§ 2. This act shall take effect on the thirtieth day after it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02620-01-7
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 law, in relation to prohibiting mortgagee from refusing to accept partial mortgage payments
Purpose
To require that banks, lenders and mortgagees accept partial mortgage payments which represent at a minimum a mortgage payment but not the total arrearages that may be due and owing.
Summary of provisions
Section 1. Amends the Real Property Tax law by adding a new section 254-e. Provides that no mortgagee shall refuse to accept partial payment on a mortgage which does not bring the mortgagor current on the mortgage debt.
Section 2. Effective Date
Existing law
None
Justification
Due to the state of the economy, many people may find themselves in dire straits, due to loss of employment, under-employment, or illness. Despite these circumstances, many people are still attempting to pay their mortgage obligations and many may fall into arrears.
The banks, lenders or mortgagees have taken the position that they will only accept the total amount of the arrearages or if they do take a payment, they will not apply it to the outstanding indebtedness while placing it into a special account which gains interest; but neither the payment or interest is credited to the mortgagor's arrearages on their mortgage.
The provisions of this proposed section will allow payments to be received and credited and will not act as a bar to any procedural rights of the banks, lenders or mortgagees.
The aim of this bill is to forestall foreclosures and give mortgagors an incentive and opportunity to redeem their property; and limit the destructive effects of foreclosure and its concomitant societal concerns.
Legislative history
2016: S.233 -REFERRED TO JUDICIARY/A.1226 - referred to judiciary 2015: S.233- REFERRED TO JUDICIARY/A.1226 - referred to judiciary 2014: S.317- Referred to Judiciary/A.2069 - Enacting Clause Stricken /A.9276 Referred to Judiciary 2013: S.317 -Referred to Judiciary/A.2069- Referred to Judiciary 2012: S.6541- Referred to Judiciary/A.8040 - Referred to Judiciary 2011: A.8040-Referred to Judiciary Banks, Reference changed to Judiciary
Fiscal implications
None
Effective date
Takes effect on the thirtieth day after it shall become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.