Senate Bill S315

                                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.