senate Bill S44

Requires a recording officer not to record or accept a transfer or assignment of interest in a mortgage unless accompanied with a mortgage ownership assignment

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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 JUDICIARY
  • 08 / Jan / 2014
    • REFERRED TO JUDICIARY

Summary

Requires a recording officer not to record or accept a transfer or assignment of interest in a mortgage unless accompanied with a mortgage ownership assignment document.

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Bill Details

See Assembly Version of this Bill:
A1082
Versions:
S44
Legislative Cycle:
2013-2014
Current Committee:
Senate Judiciary
Law Section:
Real Property Law
Laws Affected:
Add ยง291-k, RP L
Versions Introduced in Previous Legislative Cycles:
2011-2012: S667B, A626B
2009-2010: S7515A, A8684B

Sponsor Memo

BILL NUMBER:S44

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 an ownership transfer document with the
County Clerk or City Register when there is an assignment or transfer
of the ownership of the mortgage note which convey the right to
receive mortgage payments.

SUMMARY OF PROVISIONS OF BILL:
This bill amends the Real Property Law by adding a new section 291-k.
This bill requires any recording of a mortgage or assignment of a
mortgage made to a non-natural person affecting land in the state to
be accompanied by a mortgage ownership transfer document. Further,
this bill contains the "mortgage ownership transfer document" and
creates a civil penalty of $250 for failure to record a mortgage or
assignment.

JUSTIFICATION:
The recording statutes have been eclipsed by the passage of time and
no longer contain a complete public record of the ownership of real
property. The changing business practices of the mortgage industry
have 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 keep a real time
record of such transactions to facilitate real time trading. However,
the recording statutes have been interpreted by the courts as not
requiring parties to record ownership interests. Thus, borrowers can
no longer 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 they can
once again perform their purpose of recording the ownership interests
of real property.

In order for these amendments to be meaningful, each new owner of the
legal instruments will be required to record their name - whether
business or personal, the address and current phone number on the
transferor assignment form. Any agent of such new owner who
physically records such interest must record the assignment or
transfer in the name of the actual owner.

LEGISLATIVE HISTORY:
2011-12: S.667-B
2009 - Referred to Judiciary

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
Undetermined.


EFFECTIVE DATE:
Ninety days after becoming law.

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

                                   44

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sen. PERALTA -- 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  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.   The real property law is amended by adding a new section
291-k to read as follows:
  S 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 TWEN-
TY-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:

________________________________________________________________________

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01090-01-3

S. 44                               2

PHONE NUMBER:

________________________________________________________________________

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.
  S  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.

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