The New York State Senate

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10898
 
                           I N  A S S E M B L Y
 
                              August 17, 2020
                                ___________
 
 Introduced  by  COMMITTEE  ON  RULES -- (at request of M. of A. Peoples-
   Stokes, Weinstein) -- read once and referred to the Committee on Judi-
   ciary
 
 AN ACT to amend the  real  property  actions  and  proceedings  law,  in
   relation to prohibiting the registration of mortgages in default prior
   to the filing of a notice of pendency

   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 1393 to read as follows:
   § 1393. MORTGAGES IN DEFAULT. 1. NO LOCAL LAW, ORDINANCE OR RESOLUTION
 SHALL ALLOW FOR THE REGISTRATION OF  RESIDENTIAL  MORTGAGES  IN  DEFAULT
 PRIOR TO A MORTGAGEE FILING A NOTICE OF PENDENCY IN A COURT OF COMPETENT
 JURISDICTION.
   2. NO SUCH LOCAL LAW, ORDINANCE OR RESOLUTION SHALL REQUIRE A HOMEOWN-
 ER OR OCCUPANT TO REGISTER.
   3.  ANY  LOCAL LAW, ORDINANCE OR RESOLUTION THAT ALLOWS FOR THE REGIS-
 TRATION OF RESIDENTIAL MORTGAGES IN DEFAULT MAY  IMPOSE  A  REGISTRATION
 FEE  NOT EXCEEDING SEVENTY-FIVE DOLLARS ANNUALLY. A MORTGAGEE AND/OR ITS
 AGENTS ARE PROHIBITED FROM PASSING ALONG SUCH FEES TO THE  MORTGAGOR  IN
 DEFAULT.
   4.  FOR THE PURPOSES OF THIS SECTION, A MORTGAGE DEFAULT OCCURS WHEN A
 MORTGAGOR FAILS TO FULFILL ITS OBLIGATIONS UNDER A MORTGAGE AGREEMENT.
   5. "REGISTRATION" SHALL MEAN THE COLLECTION, PUBLICATION  OR  POSTING,
 PUBLIC  OR  OTHERWISE,  OF  RESIDENTIAL  MORTGAGES IN DEFAULT BY A LOCAL
 GOVERNING BODY OR AN AGENCY THEREOF,  OR  ANY  THIRD-PARTY  ENTITY  THAT
 CONTRACTS WITH SUCH LOCAL GOVERNING BODY.
   6.  "NOTICE  OF  PENDENCY"  SHALL  HAVE THE SAME MEANING AS DEFINED IN
 SECTION SIXTY-FIVE HUNDRED ONE OF THE CIVIL PRACTICE LAW AND RULES.
   7. A LOCAL GOVERNING BODY, THROUGH A LOCAL LAW,  ORDINANCE  OR  RESOL-
 UTION,  MAY  IMPOSE  A  FINE  ON A MORTGAGEE FOR NONCOMPLIANCE WITH THIS
 SECTION OR ANY LOCAL LAW, ORDINANCE OR RESOLUTION THAT  ALLOWS  FOR  THE
 REGISTRATION OF RESIDENTIAL MORTGAGES IN DEFAULT. A MORTGAGEE AND/OR ITS
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD16983-01-0

 A. 10898                            2
 
 AGENTS  ARE PROHIBITED FROM PASSING ALONG SUCH FINES TO THE MORTGAGOR IN
 DEFAULT.
   8. THE PROVISIONS OF THIS SECTION SHALL SUPERSEDE ANY LOCAL LAW, ORDI-
 NANCE,  OR RESOLUTION REQUIRING THE REGISTRATION OF MORTGAGES IN DEFAULT
 THAT WAS ENACTED PRIOR TO THE EFFECTIVE DATE OF THIS SECTION.
   § 2. This act shall take effect immediately.