Relates to the language which must be included in mortgage foreclosure notices; requires lenders, assignees, and mortgage loan servicers to evidence strict compliance with such notice requirements as pertinent.
STATE OF NEW YORK
________________________________________________________________________
5829--B
2023-2024 Regular Sessions
IN SENATE
March 17, 2023
___________
Introduced by Sens. SALAZAR, SANDERS, BAILEY, BRISPORT, COMRIE, GONZA-
LEZ, GOUNARDES, HARCKHAM, JACKSON, MANNION, PARKER, RAMOS, RYAN,
SKOUFIS, STAVISKY -- read twice and ordered printed, and when printed
to be committed to the Committee on Housing, Construction and Communi-
ty Development -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee -- recommitted
to the Committee on Housing, Construction and Community Development in
accordance with Senate Rule 6, sec. 8 -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee
AN ACT to amend the real property actions and proceedings law, in
relation to notices required prior to mortgage foreclosure
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The opening paragraph of subdivision 1 of section 1304 of
2 the real property actions and proceedings law, as amended by section 6
3 of part Q of chapter 73 of the laws of 2016, is amended to read as
4 follows:
5 Notwithstanding any other provision of law, with regard to a home
6 loan, at least ninety days before a lender, an assignee or a mortgage
7 loan servicer commences legal action against the borrower, or borrowers
8 at the property address and any other address of record, including mort-
9 gage foreclosure, such lender, assignee or mortgage loan servicer shall
10 give notice to the borrower in at least fourteen-point type which shall
11 include only the following:
12 § 2. The opening paragraph of subdivision 1-a of section 1304 of the
13 real property actions and proceedings law, as added by section 3 of part
14 HH of chapter 58 of the laws of 2018, is amended to read as follows:
15 Notwithstanding any other provision of law, with regard to a reverse
16 mortgage home loan, at least ninety days before a lender, an assignee or
17 a mortgage loan servicer commences legal action against the borrower or
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09739-04-4
S. 5829--B 2
1 borrowers at the property address and any other addresses of record,
2 including reverse mortgage foreclosure, such lender, assignee or mort-
3 gage loan servicer shall give notice to the borrower in at least four-
4 teen-point type except for the heading which shall be in at least
5 sixteen-point type which shall include only the following:
6 § 3. Section 1304 of the real property actions and proceedings law is
7 amended by adding a new subdivision 8 to read as follows:
8 8. To establish compliance with this section, the lender, assignee or
9 mortgage loan servicer shall evidence strict compliance with the subdi-
10 visions of this section, as pertinent.
11 § 4. Severability clause. If any clause, sentence, paragraph, section
12 or part of this act shall be adjudged by any court of competent juris-
13 diction to be invalid, such judgment shall not affect, impair or invali-
14 date the remainder thereof, but shall be confined in its operation to
15 the clause, sentence, paragraph, section or part thereof directly
16 involved in the controversy in which such judgment shall have been
17 rendered.
18 § 5. This act shall take effect immediately.
