senate Bill S315

Requires lenders, assignees and mortgage loan servicers to submit an affidavit to the court prior to commencing foreclosure proceedings

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 09 / Jan / 2013
    • REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
  • 08 / Jan / 2014
    • REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT

Summary

Requires lenders, assignees and mortgage loan servicers to submit an affidavit to the court at least thirty days before commencing foreclosure proceedings.

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Bill Details

See Assembly Version of this Bill:
A162
Versions:
S315
Legislative Cycle:
2013-2014
Current Committee:
Senate Housing, Construction And Community Development
Law Section:
Real Property Actions and Proceedings Law
Laws Affected:
Add ยง1304-a, RPAP L
Versions Introduced in 2011-2012 Legislative Cycle:
S6017, A9109

Sponsor Memo

BILL NUMBER:S315

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, 1304a. 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:
Real Property Actions and Proceedings Law; Section
1304, Required Prior Notices, 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 of27.7
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:
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.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   315

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

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  ASSEM-
BLY, 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:
  S  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.
  S 2. This act shall take effect on the first of November next succeed-
ing 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.
                                                           LBD00967-01-3

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