What's happening
This bill requires banks foreclosing on residential properties to offer borrowers a refinancing opportunity at their lowest recent interest rate, regardless of credit or income.
Why it matters
Could help homeowners avoid losing their homes. by requiring banks to give a last-chance refinancing offer during foreclosure, potentially making it easier for struggling borrowers to keep their property.
Mandates that refinancing be offered at the bank’s lowest recent rate. , regardless of the homeowner’s credit, income, or payment history—potentially opening up options for people who would otherwise be denied refinancing.
Limits the obligation to banks or financial institutions that both originated and still hold the mortgage. , so it would not apply in cases where mortgages have been sold to third parties or investors—this narrows who benefits.
May impact banks’ foreclosure practices and lending risk calculations. , possibly encouraging more proactive solutions with borrowers before foreclosure, or leading to changes in how banks manage and price their mortgage portfolios.
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Who cares
Headline styles
Require Refinancing Before Foreclosure
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 Foreclosure Refinance Offer
In Senate Committee · Housing, Construction And Community Development · Sponsor Roxanne J. Persaud
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6656
2019-2020 Regular Sessions
IN ASSEMBLY
March 14, 2019
Introduced by M. of A. PERRY -- read once and referred to the Committee on Judiciary
AN ACT to amend the real property actions and proceedings law, in relation to requiring the foreclosing party in a residential foreclosure action to offer a refinancing opportunity to the mortgagor
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 1303 of the real property actions and proceedings law is amended by adding a new subdivision 3-b to read as follows:
3-b. (a) At the time the notice to any residential mortgagor required by paragraph a of subdivision one of this section is delivered to the mortgagor or the mortgagor's agent, the foreclosing party shall also provide an offer to the mortgagor to refinance the mortgage. Such offer shall be included with the summons and complaint at the time such documents are served upon the mortgagor or the mortgagor's agent.
(b) The refinancing offer described in paragraph a of this subdivision shall be an offer to refinance the mortgage at the lowest interest rate offered by the foreclosing party within the thirty days prior to the commencement of the foreclosure proceeding, and shall be irrespective of the borrower's credit rating, income, assets or payment history.
(c) A foreclosing party shall not be required to offer refinancing pursuant to this subdivision more than one time in a foreclosure proceeding or more than one time with respect to the same property while the property is owned by the same mortgagor.
(d) The provisions of this subdivision shall only apply when the foreclosing party is a bank or financial institution that offers mortgages for residential real property as part of its regular course of business and is the sole holder of the mortgage on the property.
§ 2. This act shall take effect on the sixtieth day after it shall have become a law and shall apply to all foreclosures on residential properties commencing on or after such date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07158-01-9
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.