Requires lenders, assignees and mortgage loan servicers to submit an affidavit to the court at least thirty days before commencing foreclosure proceedings.
TITLE OF BILL: An act to amend the real property actions and proceedings law, in relation to requiring lenders, assignees and mortgage loan servicers to submit an affidavit to the court prior to commencing foreclosure proceedings
PURPOSE OR GENERAL IDEA OF THE BILL: Requires a signed affidavit prior to the commencement of any foreclosure proceeding. Establishes a class E felony for knowingly violating the provisions of this section.
SUMMARY OF PROVISIONS: Section 1. Amends the real property actions and proceedings law by adding a new section, 1304a. Requires a lender, assignee or a mortgage loan servicer to provide the court a signed affidavit that such lender, assignee or mortgage loan servicer has a bond or note secured by a mortgage on such real property. Provides that any person who knowingly violates this section shall be guilty of a class E felony.
Section 2. Effective Date
EXISTING LAW: Real Property Actions and Proceedings Law; Section 1304, Required Prior Notices, requires a ninety-day prior notice to the borrower that such borrower could lose his or her home.
JUSTIFICATION: While foreclosures have leveled off in most of New York City, unfortunately in the Bronx, the problem still persists at crisis levels" The cover story in the Bronx Free Press on September 21, 2011 stated in part that:
"According to Census data from 2009, the Bronx is not only the poorest borough in the city, but the South Bronx specifically is the poorest district in the country with 256,544 individuals or 38 percent of the population living below the poverty line."
"This translates to Bronx County having the lowest home ownership rates in New York City, at 20.7 percent - while simultaneously holding the city's highest foreclosure rate: an average of27.7 foreclosures per 1,000 homeowners in 2010, as noted in a March 2011 report published by the New York State Comptroller's office."
Additionally, the $25 million allocation specifically intended for legal services for foreclosure cases was eliminated from the 2011-2012 State Budget.
While this funding should be restored, steps must be taken to prevent foreclosures before they occur. This legislation will require any entity which holds a bond or note secured by a mortgage to file a signed affidavit that such entity in fact owns such real property.
The bill is based on a law which was recently enacted in Nevada, which saw a 92% drop in foreclosure rates as a result of the new law.
LEGISLATIVE HISTORY: 2012: S.6017 - Notice of Committee Consideration Requested, Committee Discharged and Committed to Rules/A.9109 - Referred to Judiciary
FISCAL IMPLICATIONS: None to State.
EFFECTIVE DATE: The first of November next succeeding the date on which it shall have become law.
STATE OF NEW YORK ________________________________________________________________________ 315 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________Introduced by Sen. DIAZ -- 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 lenders, assignees and mortgage loan servicers to submit an affidavit to the court prior to commencing foreclosure proceedings 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 1304-a to read as follows: S 1304-A. REQUIRED AFFIDAVIT. 1. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, AT LEAST THIRTY DAYS BEFORE A LENDER, AN ASSIGNEE OR A MORTGAGE LOAN SERVICER COMMENCES A MORTGAGE FORECLOSURE PROCEEDING, SUCH LENDER, ASSIGNEE OR MORTGAGE LOAN SERVICER SHALL PROVIDE THE COURT IN WHICH THEY ARE BRINGING SUCH ACTION, A SIGNED AFFIDAVIT THAT SUCH LENDER, ASSIGNEE OR MORTGAGE LOAN SERVICER HAS A BOND OR NOTE SECURED BY A MORTGAGE ON SUCH REAL PROPERTY. 2. A FALSE STATEMENT CONTAINED IN SUCH AFFIDAVIT SHALL CONSTITUTE A VIOLATION OF THIS SECTION. ANY PERSON WHO KNOWINGLY VIOLATES THE PROVISIONS OF THIS SECTION SHALL BE GUILTY OF A CLASS E FELONY. S 2. This act shall take effect on the first of November next succeed- ing the date on which it shall have become a law.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD00967-01-3