| Date of Action |
Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|---|---|
| Jun 30, 2010 |
ordered to third reading cal.1396 |
| Jun 14, 2010 |
referred to rules |
Senate Bill S8174
2009-2010 Legislative Session
Sponsored By
(D) Senate District
Archive: Last Bill Status - On Floor Calendar
Actions
Votes
co-Sponsors
(D, WF) 28th Senate District
2009-S8174 (ACTIVE) - Details
2009-S8174 (ACTIVE) - Summary
Provides that only the owner and holder of a mortgage and note, or its agent, shall have standing to commence a mortgage foreclosure action; lack of standing shall be defense that may be raised at any time; requires the plaintiff in a foreclosure action to affirm that it is the holder and owner, or its designed agent, of the subject mortgage and note; the summons and complaint shall include a copy of the original mortgage and note, and all endorsements, assignments and transfers thereof, and any delegations of authority by the owner and holder of the mortgage and note.
2009-S8174 (ACTIVE) - Sponsor Memo
BILL NUMBER:S8174
TITLE OF BILL:
An act
to amend the real property actions and proceedings law, in relation to
standing to commence an action to foreclose a mortgage
PURPOSE:
During the past 4 years, both before and after the stock market crash
of 2008, and the previous and associated meltdown of the housing
market, there has been a nationwide increase in foreclosures
throughout the country. However, many of the foreclosure actions
initiated by lenders and trusts to obtain the securitized debt
obligation (the property)," have called into question the inherent
legality of the proceedings, due to the plaintiff s lack of
"standing" and in many cases it is simply not clear who actually owns
the mortgage or debt.
Despite the fact that in order to have an appropriate foreclosure
proceeding the filing party must legally have "standing to commence
a foreclosure action" against a mortgagor or borrower, many lenders
and trusts alike continue to move forward with bringing a legal
action against borrowers when many of these lenders don't even own
the debts in the first place.
2009-S8174 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K
________________________________________________________________________
8174
I N S E N A T E
June 14, 2010
___________
Introduced by Sen. KLEIN -- read twice and ordered printed, and when
printed to be committed to the Committee on Rules
AN ACT to amend the real property actions and proceedings law, in
relation to standing to commence an action to foreclose a mortgage
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision 1 of section 1302 of the real property actions
and proceedings law, as amended by chapter 472 of the laws of 2008, is
amended to read as follows:
1. Any complaint served in a proceeding initiated pursuant to this
article relating to a high-cost home loan or a subprime home loan, as
such terms are defined in section six-l and six-m of the banking law,
respectively, must contain an affirmative allegation that at the time
the proceeding is commenced, the plaintiff[:
(a) is the owner and holder of the subject mortgage and note, or has
been delegated the authority to institute a mortgage foreclosure action
by the owner and holder of the subject mortgage and note; and
(b)] has complied with all of the provisions of section five hundred
ninety-five-a of the banking law and any rules and regulations promul-
gated thereunder, section six-l or six-m of the banking law, and SUBDI-
VISION TWO OF SECTION THIRTEEN HUNDRED TWO-A AND section thirteen
hundred four of this article.
S 2. The real property actions and proceedings law is amended by
adding a new section 1302-a to read as follows:
S 1302-A. STANDING TO COMMENCE AN ACTION. 1. NO PERSON SHALL HAVE
STANDING TO COMMENCE AN ACTION PURSUANT TO THIS ARTICLE UNLESS IT IS THE
OWNER AND HOLDER OF THE SUBJECT MORTGAGE AND NOTE, OR HAS BEEN DELEGATED
THE AUTHORITY TO INSTITUTE A MORTGAGE FORECLOSURE ACTION BY THE OWNER
AND HOLDER OF THE SUBJECT MORTGAGE AND NOTE. NOTWITHSTANDING THE
PROVISIONS OF SUBDIVISION (E) OF RULE THIRTY-TWO HUNDRED ELEVEN OF THE
CIVIL PRACTICE LAW AND RULES, ANY DEFENSE BASED ON THE PLANITIFF'S LACK
OF STANDING IN A FORECLOSURE PROCEEDING SHALL NOT BE WAIVED IF A DEFEND-
ANT FAILS TO RAISE THE DEFENSE IN A RESPONSIVE PLEADING OR PRE-ANSWER
MOTION TO DISMISS.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
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