What's happening
This bill requires non-natural persons to file a mortgage ownership assignment document when recording mortgages or assignments, or face a $250 civil penalty.
Why it matters
Increases transparency of mortgage ownership. by requiring corporations, LLCs, and other non-natural entities to disclose their identity and contact details when recording mortgages or assignments, making it easier for borrowers, regulators, and the public to identify who owns a mortgage.
Enables better enforcement and oversight. of mortgage transactions by providing a standardized form and timeline (90 days) for filing, reducing the risk of unregistered or hidden transfers that can complicate foreclosure actions or title searches.
Introduces financial accountability. for non-compliance by imposing a $250 civil penalty, creating a direct incentive for timely and accurate reporting, and generating funds specifically to support local recording offices.
Addresses gaps in current property law. where non-natural persons can obscure mortgage ownership, which can hinder legal recourse for homeowners and complicate property records, thus potentially improving overall market integrity and consumer protection.
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
Require Mortgage Ownership Documents
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 Mortgage Assignment Records
In Assembly Committee · Judiciary · Sponsor Helene Weinstein
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4806
2019-2020 Regular Sessions
IN SENATE
March 26, 2019
Introduced by Sen. THOMAS -- 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:
________________________________________________________________________
Phone number:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00883-01-9
S. 4806 2
________________________________________________________________________
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 a mortgage ownership assignment document with the recording officer which identifies the owner of the mortgage interest. Such ownership interest would be recorded with the initial mortgage and whenever the mortgage interest - which conveys the right to receive mortgage payments from the real property owner - is recorded or assigned.
Summary of provisions of bill
This bill would amend the Real Property Law by adding a new section 291-j which would require all parties with recorded property interests to record a mortgage ownership assignment document with the recording officer which identifies the owner of the mortgage interest - which conveys the right to receive mortgage payments from the real property owner - in the recorded record.
Read the full memo (862 words)
The form would be recorded within 90 days from the date that the instru- ment is acknowledged or proved. The term "instrument" applies to the initial transaction and later trading in the mortgage interest. The requirement that instruments be acknowledged or proved is current law (see section 291 of the Real Property Law) and provides a date certain for commencement of the 90 day time period. This remains true for later trading of these "instruments".
The mortgage owner would not be required to re-record the mortgage, pay a mortgage recording tax, or the mortgage transfer tax. The owner of the mortgage would be required to pay the applicable per-page recording fee. The recording would be accomplished through use of a "Mortgage Ownership Assignment Document". That form is set forth in the bill.
Failure to record such form within the statutory 90 day period will subject mortgagees and assignees to a $250 fine payable to the recording officer and used to support recording officer operations.
Justification
The recording statutes and the nature of real estate transactions have been eclipsed by the passage of time and fail to provide necessary information for owners of real property. The changing business practices of the mortgage industry has 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 maintain a database which keeps a real- time record of such transactions. This facilitates real-time trading in these instruments. However, the Court of Appeals has held that the recording statutes do not require parties to record ownership interests. Thus, borrowers cannot 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 it contains straightforward information on the current owner of the inter- est.
Further, case law from the foreclosure crisis makes it clear that the foreclosure plaintiffs are having problems convincing judges that they are the owner of the mortgage at issue. Naturally, this is critical information for the judge since a foreclosure will not be permitted to proceed if the court lacks evidence that the plaintiff is either the actual owner of the mortgage or is acting on their behalf It is clear that providing this information in a neutral public record will aid in this essential inquiry. Such statutory amendment would aid buyers of these notes given that some foreclosure eases in 2010 have been dismissed with prejudice because the plaintiff was unable to prove ownership to the satisfaction of the court. Moreover, maintaining mort- gage ownership information in the public record will aid in the enforce- ment of the recent changes to the law regarding mortgage fraud.
In order for these amendments to the recording statutes to be meaning- ful, each new owner of the legal instruments will be required to record their name - whether business or personal, the address and phone number on the mortgage ownership assignment document and that any represen- tative of such new owner who physically records such interest must record the assignment or transfer in the name of the actual owner.
Where a mortgage has been securitized, the owner of the mortgage is the entity which administers and/or manages the securitized portfolio of property. It does not refer to each individual shareholder who has an investment in the securitization.
Legislative history
2017-18: A.1387/S.475 - A.Cal/S.Judi 2016: A.163/S.1278 - A. Judiciary/S.Judiciary 2015: A.163/S.1278 - A. Codes/S.Judiciary 2013-14: A.1082/S.44 - A. Cal./S.Judiciary 2012: A.626-B/S.667-B - A. Cal./S. Rules 2011: A.626/S.667-A - PA/S. Judiciary 2010: A.8684-B/S.7515-A - PA/S. Cal 2009: A.8684-A - A. Rules
Fiscal implications for state and local governments
This bill would generate undetermined additional funds for the state's recording officers County Clerks and City Register and counties.
Effective date
The act will take effect ninety days after becoming law and shall apply to all mortgages and assignments of mortgages executed on or after such date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.