Relates to prosecution by the department of financial services (DFS) and municipalities of certain violations regarding residential real property by mortgage lenders and similar entities; directs DFS to promulgate standards of review of whether to prosecute such violations; requires deference to municipalities where both the municipality and DFS are authorized to prosecute such a violation; directs payments of civil penalties issued pursuant to such violations to be paid to DFS if DFS is the prosecuting entity.
S T A T E O F N E W Y O R K
________________________________________________________________________
8403
2025-2026 Regular Sessions
I N A S S E M B L Y
May 13, 2025
___________
Introduced by M. of A. ROMERO -- read once and referred to the Committee
on Judiciary
AN ACT to amend the real property actions and proceedings law, in
relation to prosecution by the department of financial services and
municipalities of certain violations regarding residential real prop-
erties
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The real property actions and proceedings law is amended by
adding a new section 1360 to read as follows:
§ 1360. SUPERINTENDENT OF FINANCIAL SERVICES; PROSECUTION OF
VIOLATIONS. 1. THE SUPERINTENDENT OF FINANCIAL SERVICES SHALL PROMUL-
GATE, BY REGULATION, STANDARDS OF REVIEW FOR DETERMINATIONS BY THE
DEPARTMENT OF FINANCIAL SERVICES OF WHETHER TO PROSECUTE VIOLATIONS
REGARDING RESIDENTIAL REAL PROPERTY, AS AUTHORIZED UNDER THIS ARTICLE.
2. WHERE THE DEPARTMENT OF FINANCIAL SERVICES AND A MUNICIPALITY ARE
BOTH AUTHORIZED TO PROSECUTE A VIOLATION REGARDING RESIDENTIAL REAL
PROPERTY UNDER THIS ARTICLE, THE DEPARTMENT OF FINANCIAL SERVICES SHALL
NOT SEEK TO PROSECUTE SUCH VIOLATION UNLESS IT RECEIVES CONFIRMATION
FROM SUCH MUNICIPALITY THAT SUCH MUNICIPALITY DOES NOT INTEND TO PROSE-
CUTE SUCH VIOLATION ITSELF.
3. WHERE A HEARING OFFICER OR COURT OF COMPETENT JURISDICTION DECIDES
IN FAVOR OF THE DEPARTMENT OF FINANCIAL SERVICES IN A PROCEEDING ALLEG-
ING A VIOLATION REGARDING RESIDENTIAL REAL PROPERTY UNDER THIS ARTICLE,
THE PROCEEDS OF ANY CIVIL PENALTY ISSUED PURSUANT TO SUCH DECISION SHALL
BE PAYABLE TO THE DEPARTMENT OF FINANCIAL SERVICES FOR THE PURPOSES OF
PROSECUTING FUTURE VIOLATIONS UNDER THIS ARTICLE.
4. FOR THE PURPOSES OF THIS SECTION, THE TERM "RESIDENTIAL REAL PROP-
ERTY" SHALL MEAN REAL PROPERTY LOCATED IN THIS STATE IMPROVED BY ANY
BUILDING OR STRUCTURE THAT IS OR MAY BE USED, IN WHOLE OR IN PART, AS
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05093-01-5
A. 8403 2
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