STATE OF NEW YORK
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5124
2019-2020 Regular Sessions
IN SENATE
April 10, 2019
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Introduced by Sens. PERSAUD, STAVISKY -- read twice and ordered printed,
and when printed to be committed to the Committee on Housing,
Construction and Community Development
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:
1 Section 1. Section 1303 of the real property actions and proceedings
2 law is amended by adding a new subdivision 3-b to read as follows:
3 3-b. (a) At the time the notice to any residential mortgagor required
4 by paragraph a of subdivision one of this section is delivered to the
5 mortgagor or the mortgagor's agent, the foreclosing party shall also
6 provide an offer to the mortgagor to refinance the mortgage. Such offer
7 shall be included with the summons and complaint at the time such docu-
8 ments are served upon the mortgagor or the mortgagor's agent.
9 (b) The refinancing offer described in paragraph a of this subdivision
10 shall be an offer to refinance the mortgage at the lowest interest rate
11 offered by the foreclosing party within the thirty days prior to the
12 commencement of the foreclosure proceeding, and shall be irrespective of
13 the borrower's credit rating, income, assets or payment history.
14 (c) A foreclosing party shall not be required to offer refinancing
15 pursuant to this subdivision more than one time in a foreclosure
16 proceeding or more than one time with respect to the same property while
17 the property is owned by the same mortgagor.
18 (d) The provisions of this subdivision shall only apply when the fore-
19 closing party is a bank or financial institution that offers mortgages
20 for residential real property as part of its regular course of business
21 and is the sole holder of the mortgage on the property.
22 § 2. This act shall take effect on the sixtieth day after it shall
23 have become a law and shall apply to all foreclosures on residential
24 properties commencing on or after such date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD07158-01-9
