New York State Assembly

Bill No.:  

 
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A03081 Actions:

BILL NO	A03081
01/22/2021	referred 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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