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 such person's 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
S T A T E O F N E W Y O R K
________________________________________________________________________
3348
2025-2026 Regular Sessions
I N A S S E M B L Y
January 27, 2025
___________
Introduced by M. of A. DINOWITZ, SEAWRIGHT, SIMON, GLICK, TAPIA, FORREST
-- Multi-Sponsored by -- M. of A. McDONOUGH -- read once and referred
to the Committee on Banks
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 SUCH PERSON'S 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. MATERIAL COMPLIANCE
WITH ANY SUCH RULES, REGULATIONS OR POLICIES AS THE SUPERINTENDENT MAY
PROMULGATE TO EFFECTUATE THE PURPOSES OF THIS ARTICLE, INCLUDING BUT NOT
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00016-01-5
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