NY State Senate Bill S3216

Archive: Last Bill Status - In Senate Committee Rules Committee

Introduced
In Committee
On Floor Calendar
- Passed Senate
- Passed Assembly
Delivered to Governor
Signed/Vetoed by Governor

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Actions

view actions (10)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Dec 28, 2020	committed to rules
Feb 13, 2020	advanced to third reading
Feb 12, 2020	2nd report cal.
Feb 11, 2020	1st report cal.416
Jan 08, 2020	referred to housing, construction and community development
Jun 20, 2019	committed to rules
May 13, 2019	advanced to third reading
May 08, 2019	2nd report cal.
May 07, 2019	1st report cal.644
Feb 04, 2019	referred to housing, construction and community development

Votes

view votes

Feb 11, 2020 - Housing, Construction and Community Development committee Vote

S3216

committee

Aye

Nay

Aye with Reservations

Absent

Excused

Abstained

show Housing, Construction and Community Development committee vote details

Housing, Construction and Community Development Committee Vote: Feb 11, 2020

aye (7)

nay (3)

aye wr (1)

Helming

May 7, 2019 - Housing, Construction and Community Development committee Vote

S3216

committee

Aye

Nay

Aye with Reservations

Absent

Excused

Abstained

show Housing, Construction and Community Development committee vote details

Housing, Construction and Community Development Committee Vote: May 7, 2019

aye (8)

nay (2)

aye wr (1)

Helming

Co-Sponsors

S3216 (ACTIVE) - Details

See Assembly Version of this Bill:: A5611
Current Committee:: Senate Rules
Law Section:: Real Property Actions and Proceedings Law
Laws Affected:: Amd §1302, RPAP L
Versions Introduced in Other Legislative Sessions:: 2015-2016: A10373
2017-2018: S5928, A1371
2021-2022: S5785, A2502

S3216 (ACTIVE) - Summary

Makes the affirmative allegation provisions for high-cost loans and subprime home loans, applicable to all mortgage foreclosures.

S3216 (ACTIVE) - Sponsor Memo

 
BILL NUMBER: S3216

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the real property actions and proceedings law, in
relation to foreclosure of mortgages

 
SUMMARY OF PROVISIONS OF BILL:

Section 1: Amends section 1302 of RPAPL to require that foreclosing
plaintiffs plead ownership of the note and mortgage applicable to all
homeowners instead of limited to only homeowners with subprime and high-
cost home loans.

It also ensures that RPAPL 1302 defenses are applicable to all homeown-
ers instead of limited to just homeowners with subprime and high-cost
home loans.

Section 2: Sets the effective date on the first of January after it
shall have become law.

 
JUSTIFICATION:

There has been a nationwide increase in foreclosures throughout the
country. However, many of the foreclosure actions initiated by lenders
and trusts to obtain the securitized debt obligation (the property),"
have called into question the inherent legality of the proceedings, due
to the plaintiffs lack of "standing" and in many cases it is simply not
clear who actually owns the mortgage or debt.  Despite the fact that in
order to have an appropriate foreclosure proceeding the filing party
must legally have "standing to commence a foreclosure action" against a
mortgagor or borrower, many lenders and trusts alike continue to move
forward with bringing a legal action against borrowers when many of
these lenders don't even own the debts in the first place.

In New York, numerous court decisions have held that if the borrower
doesn't raise standing upon answering the foreclosure action, the
defense of standing is waived for the borrower. See, HSBC Bank USA v.
Dammond, 59 AD3d 679 (2nd Dept 2009). Unfortunately, many times the
borrower often has no way of knowing who owns the loan, and despite the
clear requirement that the plaintiff own the note, if the defendant
borrower does not raise the issue initially in an answer or pre-answer
motion to dismiss up front, they may never be able to raise it again. In
this situation, an entity foreclosing can foreclose on a home they don't
have any legal right to foreclose on.

The proposed bill would require plaintiffs in a foreclosure action to
plead ownership of the note and mortgage for all home loans and would
enable all homeowners to avail the statutory defenses to protect their
homes, as opposed to just those homeowners with subprime or high-cost
home loans.

 
LEGISLATIVE HISTORY:

2016: A.10373-Rules
2017-18: S.5928/A.1371

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.

 
EFFECTIVE DATE:
First of January after it shall have become law.

S3216 (ACTIVE) - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3216
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             February 4, 2019
                                ___________
 
 Introduced  by  Sen.  COMRIE -- 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 of mortgages

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section 1302 of the real property actions and proceedings
 law, as amended by chapter 472 of the laws of 2008, is amended  to  read
 as follows:
   §  1302. Foreclosure of [high-cost home loans and subprime home loans]
 MORTGAGES. 1.  Any complaint served in a proceeding  initiated  pursuant
 to  this  article  [relating to a high-cost home loan or a subprime home
 loan, as such terms are defined in section six-l and six-m of the  bank-
 ing  law,  respectively,] must contain an affirmative allegation that at
 the time the proceeding is commenced, the plaintiff:
   (a) is the owner and holder of the subject mortgage and note,  or  has
 been  delegated the authority to institute a mortgage foreclosure action
 by the owner and holder of the subject mortgage and note; and
   (b) has complied with all of the provisions of  section  five  hundred
 ninety-five-a  of  the banking law and any rules and regulations promul-
 gated thereunder, section six-l or six-m of the banking law, and section
 thirteen hundred four of this article.
   2. It shall be a defense to an action to foreclose a mortgage  [for  a
 high-cost  home  loan  or subprime home loan] that the terms of the home
 loan or the actions of the lender violate any provision of section six-l
 or six-m of the banking law or section thirteen  hundred  four  of  this
 article.
   §  2. This act shall take effect on the first of January next succeed-
 ing the date on which it shall have become a  law  and  shall  apply  to
 actions commenced on or after such date.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD00876-01-9

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The New York State Senate

senate Bill S3216

Sponsored By

Archive: Last Bill Status - In Senate Committee Rules Committee

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Votes

Feb 11, 2020 - Housing, Construction and Community Development committee Vote

Housing, Construction and Community Development Committee Vote: Feb 11, 2020

May 7, 2019 - Housing, Construction and Community Development committee Vote

Housing, Construction and Community Development Committee Vote: May 7, 2019

Co-Sponsors

S3216 (ACTIVE) - Details

S3216 (ACTIVE) - Summary

S3216 (ACTIVE) - Sponsor Memo

S3216 (ACTIVE) - Bill Text download pdf

Comments

senate Bill S3216

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Sponsored By

Leroy Comrie

Archive: Last Bill Status - In Senate Committee Rules Committee

Your Voice

Actions

Votes

Feb 11, 2020 - Housing, Construction and Community Development committee Vote

Housing, Construction and Community Development Committee Vote: Feb 11, 2020

May 7, 2019 - Housing, Construction and Community Development committee Vote

Housing, Construction and Community Development Committee Vote: May 7, 2019

Co-Sponsors

Velmanette Montgomery

Robert Jackson

S3216 (ACTIVE) - Details

S3216 (ACTIVE) - Summary

S3216 (ACTIVE) - Sponsor Memo

S3216 (ACTIVE) - Bill Text download pdf

Comments