S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2131--A
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 23, 2023
                                ___________
 
 Introduced  by  M.  of  A.  DINOWITZ,  SEAWRIGHT, SIMON, DICKENS, GLICK,
   TAPIA, FORREST -- Multi-Sponsored by -- M. of  A.  McDONOUGH  --  read
   once  and  referred to the Committee on Banks -- committee discharged,
   bill amended, ordered reprinted as amended  and  recommitted  to  said
   committee

 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00882-04-3
 A. 2131--A                          2
              

 
   4. COMPLIANCE WITH RULES, REGULATIONS OR POLICIES. MATERIAL 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 SERVIC-
 ING  RULES  PURSUANT TO THIS SUBDIVISION, SHALL BE A CONDITION PRECEDENT
 TO COMMENCING AN ACTION TO FORECLOSE UPON A  MORTGAGE  SUBJECT  TO  THIS
 ARTICLE  OR  AN ACTION ON THE NOTE, AND THE FAILURE TO MATERIALLY COMPLY
 WITH SUCH RULES, REGULATIONS OR POLICIES SHALL BE A DEFENSE TO  A  FORE-
 CLOSURE  ACTION OR ACTION ON THE NOTE, EVEN IF SERVICING HAS BEEN TRANS-
 FERRED TO A DIFFERENT MORTGAGE SERVICER WHEN  A  FORECLOSURE  ACTION  OR
 ACTION ON THE NOTE IS COMMENCED.
   §  2.  This  act shall take effect on the thirtieth day after it shall
 have become a law.