S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10851
 
                           I N  A S S E M B L Y
 
                               July 24, 2020
                                ___________
 
 Introduced by COMMITTEE ON RULES -- (at request of M. of A. Dinowitz) --
   read once and referred to the Committee on Banks
 
 AN ACT to amend the banking law, in relation to mortgage loan servicers
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 595-b of the banking law is amended by  adding  two
 new subdivisions 3 and 4 to read as follows:
   3.  ACTIONS AND DAMAGES. (A) ANY PERSON WHO HAS BEEN INJURED BY REASON
 OF ANY VIOLATION OF ANY SUCH  RULES,  REGULATIONS  OR  POLICIES  AS  THE
 SUPERINTENDENT  MAY  PROMULGATE TO EFFECTUATE THE PURPOSES OF THIS ARTI-
 CLE, INCLUDING BUT NOT LIMITED  TO  3  NYCRR  419  OR  ANY  SUBSEQUENTLY
 PROMULGATED MORTGAGE SERVICING RULES PURSUANT TO THIS SUBDIVISION, MAY:
   (I) BRING AN ACTION IN HIS OR HER OWN NAME;
   (II) ASSERT A COUNTERCLAIM; OR
   (III)  IF  AN ACTION IS COMMENCED BY THE MORTGAGEE OR ANYONE ACTING ON
 ITS BEHALF, BRING A THIRD PARTY  CLAIM,  AGAINST  EITHER  THE  MORTGAGEE
 AND/OR THE MORTGAGE SERVICER TO ENJOIN ANY VIOLATIONS THEREOF.
   (B) THE PERSON INJURED PURSUANT TO THIS SECTION:
   (I)  MAY  RECOVER  STATUTORY  DAMAGES  OF  ONE  THOUSAND  DOLLARS  PER
 VIOLATION;
   (II) MAY RECOVER TREBLE ACTUAL DAMAGES; AND
   (III) IF AWARDED DAMAGES OR INJUNCTIVE RELIEF, SHALL ALSO BE  ENTITLED
 TO  RECOVER  COSTS AND EXPENSES, INCLUDING BUT NOT LIMITED TO REASONABLE
 ATTORNEYS' FEES.
   (C) THE MORTGAGEE AND THE  MORTGAGE  SERVICER  SHALL  BE  JOINTLY  AND
 SEVERALLY  LIABLE  FOR  ANY  RECOVERIES  BY  AN INJURED MORTGAGOR IN ANY
 ACTION BROUGHT PURSUANT TO THIS SUBDIVISION.
   4. COMPLIANCE WITH RULES, REGULATIONS OR POLICIES. COMPLIANCE WITH ANY
 SUCH RULES, REGULATIONS OR POLICIES AS THE SUPERINTENDENT MAY PROMULGATE
 TO EFFECTUATE THE PURPOSES OF THIS ARTICLE, INCLUDING BUT NOT LIMITED TO
 3 NYCRR 419 OR ANY SUBSEQUENTLY  PROMULGATED  MORTGAGE  SERVICING  RULES
 PURSUANT TO THIS SUBDIVISION, SHALL BE A CONDITION PRECEDENT TO COMMENC-
 ING AN ACTION TO FORECLOSE UPON A MORTGAGE SUBJECT TO THIS ARTICLE OR AN
 ACTION  ON  THE  NOTE,  AND THE FAILURE TO COMPLY WITH SUCH RULES, REGU-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD16957-01-0

 A. 10851                            2
 
 LATIONS OR POLICIES SHALL BE A COMPLETE DEFENSE TO A FORECLOSURE  ACTION
 OR  ACTION  ON  THE  NOTE,  EVEN  IF SERVICING HAS BEEN TRANSFERRED TO A
 DIFFERENT MORTGAGE SERVICER WHEN A FORECLOSURE ACTION OR ACTION  ON  THE
 NOTE IS COMMENCED.
   § 2. This act shall take effect immediately.