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Assembly Bill A1651

2021-2022 Legislative Session

Requires the foreclosing party in a residential foreclosure action to offer a refinancing opportunity to the mortgagor

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2021-A1651 (ACTIVE) - Details

Law Section:
Real Property Actions and Proceedings Law
Laws Affected:
Amd §1303, RPAP L
Versions Introduced in Other Legislative Sessions:
2019-2020: A6656
2023-2024: A6644
2025-2026: A7218

2021-A1651 (ACTIVE) - Summary

Requires the foreclosing party in a residential foreclosure action to offer a refinancing opportunity to the mortgagor.

2021-A1651 (ACTIVE) - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1651
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 11, 2021
                                ___________
 
 Introduced  by M. of A. PERRY -- read once and referred to the Committee
   on Judiciary
 
 AN ACT to amend the  real  property  actions  and  proceedings  law,  in
   relation  to requiring the foreclosing party in a residential foreclo-
   sure action to offer a refinancing opportunity to the mortgagor

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section 1303 of the real property actions and proceedings
 law is amended by adding a new subdivision 3-b to read as follows:
   3-B. (A) AT THE TIME THE NOTICE TO ANY RESIDENTIAL MORTGAGOR  REQUIRED
 BY  PARAGRAPH  A  OF SUBDIVISION ONE OF THIS SECTION IS DELIVERED TO THE
 MORTGAGOR OR THE MORTGAGOR'S AGENT, THE  FORECLOSING  PARTY  SHALL  ALSO
 PROVIDE  AN OFFER TO THE MORTGAGOR TO REFINANCE THE MORTGAGE. SUCH OFFER
 SHALL BE INCLUDED WITH THE SUMMONS AND COMPLAINT AT THE TIME SUCH  DOCU-
 MENTS ARE SERVED UPON THE MORTGAGOR OR THE MORTGAGOR'S AGENT.
   (B) THE REFINANCING OFFER DESCRIBED IN PARAGRAPH A OF THIS SUBDIVISION
 SHALL  BE AN OFFER TO REFINANCE THE MORTGAGE AT THE LOWEST INTEREST RATE
 OFFERED BY THE FORECLOSING PARTY WITHIN THE THIRTY  DAYS  PRIOR  TO  THE
 COMMENCEMENT OF THE FORECLOSURE PROCEEDING, AND SHALL BE IRRESPECTIVE OF
 THE BORROWER'S CREDIT RATING, INCOME, ASSETS OR PAYMENT HISTORY.
   (C)  A  FORECLOSING  PARTY  SHALL NOT BE REQUIRED TO OFFER REFINANCING
 PURSUANT TO THIS  SUBDIVISION  MORE  THAN  ONE  TIME  IN  A  FORECLOSURE
 PROCEEDING OR MORE THAN ONE TIME WITH RESPECT TO THE SAME PROPERTY WHILE
 THE PROPERTY IS OWNED BY THE SAME MORTGAGOR.
   (D) THE PROVISIONS OF THIS SUBDIVISION SHALL ONLY APPLY WHEN THE FORE-
 CLOSING  PARTY  IS A BANK OR FINANCIAL INSTITUTION THAT OFFERS MORTGAGES
 FOR RESIDENTIAL REAL PROPERTY AS PART OF ITS REGULAR COURSE OF  BUSINESS
 AND IS THE SOLE HOLDER OF THE MORTGAGE ON THE PROPERTY.
   §  2.  This  act  shall take effect on the sixtieth day after it shall
 have become a law and shall apply to  all  foreclosures  on  residential
 properties commencing on or after such date.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

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