NY State Senate Bill 2017-S4686

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

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

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to housing, construction and community development
Feb 24, 2017	referred to housing, construction and community development

2017-S4686 (ACTIVE) - Details

Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Real Property Actions and Proceedings Law
Laws Affected:: Add §1392, RPAP L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S7035
2015-2016: S3762
2019-2020: S2480
2021-2022: S5187

2017-S4686 (ACTIVE) - Summary

Relates to prohibiting robosigned documents in foreclosure actions.

2017-S4686 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S4686

 TITLE OF BILL :  An act to amend the real property actions and
proceedings law, in relation to foreclosure actions and robosigned
documents

 PURPOSE :

Would provide that any entity which records a robosigned document or
files a robosigned document in any court, relative to a foreclosure
proceeding, is liable for a civil penalty of $10,000 per robosigned
document.

 SUMMARY OF PROVISIONS :

Section 1392 of the real property law added to the Real Property law
as follows:

1. Sets forth the definition of a "robosigned document."

2. States that any entity that files a robosigned document in any
court relative to a foreclosure proceeding shall be subject to a civil
penalty of $10,000 per robosigned document.

3. Allows a borrower to seek an order in any court of competent
jurisdiction if the borrower reasonably believes that the foreclosing

party used robosigned documents.

4. Following a trustee's sale, a borrower may recover the greater of
actual damages or $10,000 plus attorney's fees if the foreclosing
party used robosigned documents.

5. A court may award the borrower the greater of $50,000 plus
attorney's fees or treble damages if the use of robosigned documents
was intentional.

6. A violation of this section shall not affect the validity of any
sale of the property without notice.

7. The borrower may not obtain relief under this section if the
violation was technical or de minimis.

8. It shall be an affirmative defense for a violation of this section
if the entity violating this section is a signatory to the settlement
between the attorney generals of several states including New York.

9. A third party encumbrancer shall not be relieved of liability under
this section that occurred prior to the sale of the property.

Section 2. This act shall take effect immediately.

 EXISTING LAW :

None

 JUSTIFICATION :

As our nation makes its way through the foreclosure crisis that has
beset it for many years, the abuse of many banks and mortgage
servicers have come to light. One of the most egregious abuses by the
banks and mortgage servicers has been "robo-signing."  In a
foreclosure preceding a bank or mortgage servicer must provide
documentation and affidavits to, among other things, prove that the
party actually owns the mortgage and that the owner is in default. As
the mortgage crisis expanded, banks and mortgage servicers routinely
used affidavits signed by employees who did not personally review the
documents. These employees also had no basis for believing that the
homeowner was in default or that the bank owned the loan.

While several banks have entered into agreements with several states'
attorneys general, many banks and mortgage servicers who have not
entered into a settlement have committed the same offense. This bill
will create a civil penalty for those banks and mortgage servicers.

 LEGISLATIVE HISTORY :

02/17/15 REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
01/06/16 REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT

 FISCAL IMPLICATIONS :

No cost but state may receive civil penalties.

 LOCAL FISCAL IMPLICATIONS :

None

 EFFECTIVE DATE :
This act shall take effect immediately.

2017-S4686 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4686
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             February 24, 2017
                                ___________
 
 Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Housing, Construction  and
   Community Development
 
 AN  ACT  to  amend  the  real  property  actions and proceedings law, in
   relation to foreclosure actions and robosigned documents

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The real property actions and proceedings law is amended by
 adding a new section 1392 to read as follows:
   §  1392.  ROBOSIGNED  DOCUMENTS.  1.  FOR  THE PURPOSE OF THIS SECTION
 "ROBOSIGNED DOCUMENT" SHALL MEAN  ANY  DOCUMENT  THAT  CONTAINS  FACTUAL
 ASSERTIONS  THAT ARE NOT ACCURATE, ARE INCOMPLETE, OR ARE UNSUPPORTED BY
 COMPETENT, RELIABLE EVIDENCE. A "ROBOSIGNED  DOCUMENT"  ALSO  MEANS  ANY
 DOCUMENT  THAT  HAS  NOT BEEN REVIEWED BY ITS SIGNER TO SUBSTANTIATE THE
 FACTUAL ASSERTIONS CONTAINED IN THE DOCUMENT. FOR PURPOSES OF THIS DEFI-
 NITION, MULTIPLE PEOPLE MAY VERIFY THE DOCUMENT OR STATEMENT SO LONG  AS
 THE  DOCUMENT OR STATEMENT SPECIFIES THE PORTIONS VERIFIED BY EACH SIGN-
 ER.
   2. ANY ENTITY THAT RECORDS A ROBOSIGNED DOCUMENT OR FILES A ROBOSIGNED
 DOCUMENT IN ANY COURT RELATIVE TO  A  FORECLOSURE  PROCEEDING  SHALL  BE
 LIABLE  FOR A CIVIL PENALTY OF TEN THOUSAND DOLLARS PER ROBOSIGNED DOCU-
 MENT. THE CIVIL PENALTIES UNDER  THIS  SECTION  ARE  SEPARATE  FROM  AND
 EXCLUSIVE  OF  ANY  OTHER  REMEDIES  OR LIABILITIES THAT MAY APPLY. THIS
 SECTION IS NOT INTENDED TO LIMIT THE TYPE  OF  ACTIONS  REGARDING  ROBO-
 SIGNED DOCUMENTS THAT MAY BE FILED BY ANY GOVERNMENTAL ENTITY.
   3.  A  BORROWER  MAY SEEK AN ORDER IN ANY COURT HAVING JURISDICTION TO
 ENJOIN ANY PENDING  TRUSTEE'S  SALE,  IF  A  NOTICE  OF  SALE  HAS  BEEN
 RECORDED, AND THE BORROWER REASONABLY BELIEVES THAT THE MORTGAGEE, TRUS-
 TEE, BENEFICIARY, OR AUTHORIZED AGENT FAILED TO COMPLY WITH THE REQUIRE-
 MENTS  OF  THIS  SECTION.  A BORROWER WHO OBTAINS AN INJUNCTION SHALL BE
 AWARDED REASONABLE ATTORNEY'S FEES AND COSTS.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD01858-01-7

 S. 4686                             2
 
   4. FOLLOWING A TRUSTEE'S SALE, A BORROWER MAY RECOVER THE  GREATER  OF
 ACTUAL  DAMAGES  OR TEN THOUSAND DOLLARS PLUS REASONABLE ATTORNEY'S FEES
 AND COSTS IN ANY  COURT  OF  COMPETENT  JURISDICTION,  IF  THE  BORROWER
 REASONABLY BELIEVES THAT THE MORTGAGEE, TRUSTEE, BENEFICIARY, OR AUTHOR-
 IZED AGENT FAILED TO COMPLY WITH THE REQUIREMENTS OF THIS SECTION.
   5.  A  COURT MAY AWARD A BORROWER THE GREATER OF TREBLE ACTUAL DAMAGES
 OR STATUTORY DAMAGES OF FIFTY THOUSAND DOLLARS, PLUS ATTORNEY'S FEES AND
 COSTS, IF IT FINDS THAT THE VIOLATION OF THIS SECTION  WAS  INTENTIONAL,
 RECKLESS,  OR  RESULTED FROM WILLFUL MISCONDUCT BY A MORTGAGEE, TRUSTEE,
 BENEFICIARY, OR AUTHORIZED AGENT.
   6. A VIOLATION OF THIS ARTICLE SHALL NOT AFFECT THE VALIDITY OF A SALE
 IN FAVOR OF A BONA FIDE PURCHASER AND ANY OF ITS ENCUMBRANCERS FOR VALUE
 WITHOUT NOTICE.
   7. NOTWITHSTANDING SUBDIVISIONS THREE AND  FOUR  OF  THIS  SECTION,  A
 BORROWER MAY NOT OBTAIN RELIEF UNDER THIS SECTION FOR ANY VIOLATION THAT
 WAS TECHNICAL OR DE MINIMIS IN NATURE THAT DID NOT IMPACT THE BORROWER'S
 ABILITY  TO  PURSUE  AN  ALTERNATIVE  TO FORECLOSURE AS PROVIDED BY THIS
 ARTICLE.
   8. IT SHALL BE AN AFFIRMATIVE DEFENSE TO ANY LIABILITY  FOR  VIOLATION
 OF  THIS  SECTION  THAT A SIGNATORY TO A CONSENT JUDGMENT ENTERED IN THE
 CASE ENTITLED UNITED STATES OF AMERICA V. BANK OF  AMERICA  CORPORATION,
 FILED  IN  THE  FEDERAL  DISTRICT  COURT FOR THE DISTRICT OF WASHINGTON,
 D.C., CASE NUMBER 1:12-CV-00361 RMC, IS IN COMPLIANCE WITH THAT  CONSENT
 JUDGMENT WHILE THE CONSENT JUDGMENT IS IN EFFECT.
   9.  A  THIRD-PARTY  ENCUMBRANCER  SHALL NOT BE RELIEVED FROM LIABILITY
 RESULTING FROM A VIOLATION OF THIS SECTION COMMITTED BY THAT THIRD-PARTY
 ENCUMBRANCER, THAT OCCURRED PRIOR TO THE SALE OF THE SUBJECT PROPERTY TO
 THE BONA FIDE PURCHASER.
   § 2. This act shall take effect immediately.

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Senate Bill S4686

Sponsored By

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

2017-S4686 (ACTIVE) - Details

2017-S4686 (ACTIVE) - Summary

2017-S4686 (ACTIVE) - Sponsor Memo

2017-S4686 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S4686

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Sponsored By

James Sanders Jr.

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

2017-S4686 (ACTIVE) - Details

2017-S4686 (ACTIVE) - Summary

2017-S4686 (ACTIVE) - Sponsor Memo

2017-S4686 (ACTIVE) - Bill Text download pdf

Comments