Senate Bill S7515A

2009-2010 Legislative Session

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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Archive: Last Bill Status Via A8684 - On Floor Calendar

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jul 01, 2010	3rd reading cal.1235 substituted for s7515a
Jul 01, 2010	substituted by a8684b
Jun 25, 2010	ordered to third reading cal.1235
Jun 23, 2010	committee discharged and committed to rules
Jun 18, 2010	print number 7515a
Jun 18, 2010	amend and recommit to judiciary
Apr 16, 2010	referred to judiciary

Votes

- Jun 25, 2010 - Rules Committee Vote
  S7515A
  
  Aye
  
  13
  
  Nay
  
  8
  
  Aye with Reservations
  
  0
  
  Absent
  
  1
  
  Excused
  
  1
  
  Abstained
  
  0
  - - Rules Committee Vote: Jun 25, 2010
      
      aye (13)
      
      Dilan
      
      Duane
      
      Espada
      
      Hassell-Thompson
      
      Klein
      
      Krueger
      
      Montgomery
      
      Parker
      
      Serrano
      
      Smith
      
      Stachowski
      
      Stewart-Cousins
      
      Valesky
      
      nay (8)
      
      Farley
      
      Hannon
      
      Johnson
      
      LaValle
      
      Saland
      
      Seward
      
      Skelos
      
      Volker
      
      absent (1)
      
      Padavan
      
      excused (1)
      
      Larkin

Bill Amendments

Original

A (Active)

2009-S7515 - Details

See Assembly Version of this Bill:: A8684
Law Section:: Real Property Law
Laws Affected:: Add §291-i, RP L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S667, A626
2013-2014: S44, A1082
2015-2016: S1278, A163
2017-2018: S475, A1387
2019-2020: S4806, A5613
2021-2022: S212
2023-2024: S526
2025-2026: S4703

2009-S7515 - 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.

2009-S7515 - Sponsor Memo

                                 BILL NUMBER:  S7515

 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-i
which requires all parties with recorded property interests to record
all transfer or assignments in the ownership of the mortgage note from
a previous owner of the legal instruments to a new owner.  The parties
would not be required to re-record the mortgage, pay a mortgage
recording tax, or the mortgage transfer tax. The recording party would
be required to pay the applicable per-page recording fee.  The
recording would be accomplished through use of a "transfer of
ownership form".

 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
transfer or 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 :
New bill.

 FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS :
Undetermined.

 EFFECTIVE DATE :
Ninety days after becoming law.

2009-S7515 - Bill Text download pdf

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

                                  7515

                            I N  S E N A T E

                             April 16, 2010
                               ___________

Introduced  by  Sen. SCHNEIDERMAN -- 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-i to read as follows:
  S  291-I.  RECORDING  OF  TRANSFERS  AND  ASSIGNMENTS  OF   MORTGAGES.
NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, EVERY TRANS-
FER  OR ASSIGNMENT OF THE OWNERSHIP OF A MORTGAGE NOTE SHALL BE RECORDED
WITH THE COUNTY CLERK OR CITY REGISTER WITHIN TWENTY BUSINESS DAYS AFTER
SUCH TRANSFER  OR  ASSIGNMENT.  THE  TRANSFER  OR  ASSIGNMENT  SHALL  BE
RECORDED  BY  ADDING  AN  OWNERSHIP  TRANSFER  DOCUMENT  TO THE EXISTING
RECORD. THIS DOCUMENT SHALL INCLUDE THE CURRENT NAME, ADDRESS AND  PHONE
NUMBER OF THE NEW OWNER AND THE DATE OF TRANSFER OR ASSIGNMENT. AN AGENT
MAY RECORD SUCH ASSIGNMENT OR TRANSFER BUT THE RECORDED OWNERSHIP TRANS-
FER DOCUMENT SHALL INCLUDE THE CURRENT NAME, ADDRESS AND PHONE NUMBER OF
THE OWNER OF THE NOTE.
  S  2.  This  act shall take effect on the ninetieth day after it shall
have become a law and shall apply to transfers and assignments of  mort-
gage  interests  accruing on or after such date; provided that any forms
necessary for the implementation of the provisions of this  act  on  its
effective  date  are  authorized  and  directed  to be promulgated on or
before such date.




 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14163-03-0

2009-S7515A (ACTIVE) - Details

See Assembly Version of this Bill:: A8684
Law Section:: Real Property Law
Laws Affected:: Add §291-i, RP L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S667, A626
2013-2014: S44, A1082
2015-2016: S1278, A163
2017-2018: S475, A1387
2019-2020: S4806, A5613
2021-2022: S212
2023-2024: S526
2025-2026: S4703

2009-S7515A (ACTIVE) - 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.

2009-S7515A (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S7515A

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-i.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 home- owner 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
transfer or 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:
New bill.

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
Undetermined.

EFFECTIVE DATE:
Ninety days after becoming law.

2009-S7515A (ACTIVE) - Bill Text download pdf

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

                                 7515--A

                            I N  S E N A T E

                             April 16, 2010
                               ___________

Introduced  by  Sen. SCHNEIDERMAN -- read twice and ordered printed, and
  when printed to be committed to the Committee on Judiciary --  commit-
  tee  discharged, bill amended, ordered reprinted as amended and recom-
  mitted to said committee

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-i to read as follows:
  S 291-I. 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 TO 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:

________________________________________________________________________

PHONE NUMBER:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14163-09-0

S. 7515--A                          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 TO 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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Senate Bill S7515A

Sponsored By

Archive: Last Bill Status Via A8684 - On Floor Calendar

Actions

Votes

Jun 25, 2010 - Rules Committee Vote

Rules Committee Vote: Jun 25, 2010

Bill Amendments

2009-S7515 - Details

2009-S7515 - Summary

2009-S7515 - Sponsor Memo

2009-S7515 - Bill Text download pdf

2009-S7515A (ACTIVE) - Details

2009-S7515A (ACTIVE) - Summary

2009-S7515A (ACTIVE) - Sponsor Memo

2009-S7515A (ACTIVE) - Bill Text download pdf

Comments

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Senate Bill S7515A

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Sponsored By

Eric T. Schneiderman

Archive: Last Bill Status Via A8684 - On Floor Calendar

Actions

Votes

Bill Amendments

2009-S7515 - Details

2009-S7515 - Summary

2009-S7515 - Sponsor Memo

2009-S7515 - Bill Text download pdf

2009-S7515A (ACTIVE) - Details

2009-S7515A (ACTIVE) - Summary

2009-S7515A (ACTIVE) - Sponsor Memo

2009-S7515A (ACTIVE) - Bill Text download pdf

Comments