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A305Assembly2025-2026 Session

Increase Civil Penalty Limits

Official title

“Increases the maximum civil penalty”

Sponsor Catalina CruzAD-39Affects Legal
Status
In Assembly Committee
Judiciary
Impact
5/10
Moderate
Passage
8%

Bill progress

Step 2 of 7

In committee · Judiciary

What's happening

This bill doubles the maximum daily civil penalty for mortgage-related violations from $500 to $1,000 per property.

Why it matters

  1. Increases financial deterrence for mortgagees. By doubling the maximum daily penalty, the bill raises the financial stakes for mortgage servicers or agents who violate property maintenance laws, potentially motivating them to address issues more promptly.

  2. Strengthens protections for neighborhoods. Higher penalties may lead to quicker resolution of property violations (such as neglect of foreclosed homes), which can help reduce blight, protect neighbors’ property values, and improve community safety.

  3. Signals legislative priority on property standards. The amendment reflects a policy shift toward stricter enforcement and oversight in the mortgage and foreclosure process, emphasizing public interest in holding property holders accountable.

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Who cares

  • Mortgage lenders

    The bill would double the maximum civil penalty for violations of section 1308 from $500 to $1,000 per day per property for each day a violation persists.

  • Agents of mortgage lenders

    Agents found to have violated section 1308 would also face the increased maximum daily penalty.

  • Hearing officers and courts

    The bill would allow them to impose the higher penalty when a violation is established by a preponderance of the evidence.

Headline styles

Increase Civil Penalty Limits

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
Catalina Cruz

Assembly Member · Assembly District 39

No co-sponsors yet.

History

  1. Referred to judiciary
  2. Referred to judiciary

Full text

1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

305

2025-2026 Regular Sessions

IN ASSEMBLY (Prefiled)

January 8, 2025

Introduced by M. of A. CRUZ -- read once and referred to the Committee on Judiciary

AN ACT to amend the real property actions and proceedings law, in relation to increasing the maximum civil penalty

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. Paragraph (a) of subdivision 8 of section 1308 of the real property actions and proceedings law, as added by section 1 of part Q of chapter 73 of the laws of 2016, is amended to read as follows:

(a) Violations of this section may be heard before a hearing officer or a court of competent jurisdiction. If it shall appear to the satisfaction of the hearing officer or the court, based on the preponderance of the evidence, that the mortgagee or agent of a mortgagee has violated this section, a civil penalty may be issued by the hearing officer or the court in the amount of up to [five hundred] one thousand dollars per day per property for each day the violation persisted.

§ 2. This act shall take effect immediately.

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD00721-01-5

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.