A03081 Actions:

BILL NOA03081
 
01/22/2021referred to judiciary
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A03081 Committee Votes:

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A03081 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A3081
 
SPONSOR: Peoples-Stokes
  TITLE OF BILL: An act to amend the real property actions and proceedings law, in relation to prohibiting the registration of mortgages in default prior to the filing of a notice of pendency   PURPOSE OR GENERAL IDEA OF BILL: The purpose of this bill is to protect mortgagors in distress from unreasonable fines and other conditions associated with mortgage fore- closure registries.   SUMMARY OF PROVISIONS: Section 1 adds a new section 1393 to the real property actions and proceedings law to prohibit municipalities from creating a registry of residential mortgages in default prior to a mortgagee filing a notice of pendency in a court of competent jurisdiction, and to put in place sensible rules, including prohibiting the passing along of fines to a mortgagor in default when such a registry is created. Section 2 provides for an immediate effective date.   JUSTIFICATION: Across the state, mortgage in default registries are rising in populari- ty. Municipalities often contract with a third party to administer such registries, and they often have hefty and unreasonable fees or other conditions attached, which may ultimately be passed on to the mortgagor. This legislation is necessary to implement sensible restrictions and parameters for municipalities considering such a registry.   PRIOR LEGISLATIVE HISTORY: 2020: A10898 Peoples-Stokes / S8915 Kennedy   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: Minimal   EFFECTIVE DATE: Immediately.
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