senate Bill S8789

2019-2020 Legislative Session

Relates to mortgage loan servicers

download bill text pdf

Sponsored By

Current 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 (1)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jul 16, 2020 referred to rules

Co-Sponsors

S8789 (ACTIVE) - Details

See Assembly Version of this Bill:
A10851
Current Committee:
Senate Rules
Law Section:
Banking Law
Laws Affected:
Amd §595-b, Bank L

S8789 (ACTIVE) - Summary

Provides that any person who has been injured by reason of any violation of any such rules, regulations or policies as the superintendent may promulgate may bring an action in his or her own name; assert a counterclaim; or, 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; authorizes damages (view more) makes related provisions.

S8789 (ACTIVE) - Sponsor Memo

S8789 (ACTIVE) - Bill Text download pdf


                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  8789

                            I N  S E N A T E

                              July 16, 2020
                               ___________

Introduced  by Sen. KAVANAGH -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

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

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