BILL NUMBER:  S265

 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, 1304-a. 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 :  Current statute 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 of 27.7 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 :  2014: S.315 - Referred to Housing,
Construction and Community Development/A.162 - Referred to Judiciary
2013: S.315 - Referred to Housing, Construction and Community
Development/A.162 - Referred to Judiciary 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.