Requires a recording officer not to record or accept a transfer or assignment of interest in a mortgage unless accompanied with a mortgage ownership assignment document.
TITLE OF BILL: An act to amend the real property law, in relation to the recording of a transfer or assignment of a mortgage interest
PURPOSE OF BILL: To require parties to record an ownership transfer document with the County Clerk or City Register when there is an assignment or transfer of the ownership of the mortgage note which convey the right to receive mortgage payments.
SUMMARY OF PROVISIONS OF BILL: This bill amends the Real Property Law by adding a new section 291-j. This bill requires any recording of a mortgage or assignment of a mortgage made to a non-natural person affecting land in the state to be accompanied by a mortgage ownership transfer document. Further, this bill contains the "mortgage ownership transfer document" and creates a civil penalty of $250 for failure to record a mortgage or assignment.
JUSTIFICATION: The recording statutes have been eclipsed by the passage of time and no longer contain a complete public record of the ownership of real property. The changing business practices of the mortgage industry have led to the free trading of the legal instruments which represent the right to collect the stream of mortgage payments from real property borrowers. Private record keeping entities keep a real time record of such transactions to facilitate real time trading. However, the recording statutes have been interpreted by the courts as not requiring parties to record ownership interests. Thus, borrowers can no longer ascertain the identity of the owner(s) of their promissory notes through simple access to the public record. This prevents ready communication between the homeowner and the owner of their legal instruments. In this time of turmoil in housing and mortgage lending, this inability to contact the actual owner of their mortgage note leaves a distressed borrower unable to contact their note owner. This situation requires an update to the recording statutes so they can once again perform their purpose of recording the ownership interests of real property.
In order for these amendments to be meaningful, each new owner of the legal instruments will be required to record their name - whether business or personal, the address and current phone number on the transferor assignment form. Any agent of such new owner who physically records such interest must record the assignment or transfer in the name of the actual owner.
2009 - Referred to Judiciary
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: Undetermined.
EFFECTIVE DATE: Ninety days after becoming law.
STATE OF NEW YORK ________________________________________________________________________ 667--B 2011-2012 Regular Sessions IN SENATE (PREFILED) January 5, 2011 ___________Introduced by Sen. PERALTA -- read twice and ordered printed, and when printed to be committed to the Committee on Judiciary -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- recommitted to the Committee on Judiciary in accordance with Senate Rule 6, sec. 8 -- committee discharged and said bill committed to the Committee on Rules -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said commit- tee AN ACT to amend the real property law, in relation to the recording of a transfer or assignment of a mortgage interest THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The real property law is amended by adding a new section 291-j to read as follows: S 291-J. RECORDING OF TRANSFERS AND ASSIGNMENTS OF MORTGAGES; MORTGAGE OWNERSHIP ASSIGNMENT DOCUMENT. 1. A RECORDING OFFICER SHALL NOT RECORD OR ACCEPT FOR RECORDING ANY MORTGAGE OR ASSIGNMENT OF MORTGAGE MADE BY A NON-NATURAL PERSON AFFECTING LAND IN THIS STATE UNLESS ACCOMPANIED BY A MORTGAGE OWNERSHIP ASSIGNMENT DOCUMENT IN A FORM PRESCRIBED BY THIS SECTION AND THE FEE PRESCRIBED PURSUANT TO SECTION EIGHT THOUSAND TWEN- TY-ONE OF THE CIVIL PRACTICE LAW AND RULES. SUCH FORM SHALL BE RECORDED NO LATER THAN NINETY DAYS AFTER THE DATE OF THE ACKNOWLEDGMENT OR PROOF OF SUCH INSTRUMENT. 2. THE FORM OF THE MORTGAGE OWNERSHIP ASSIGNMENT DOCUMENT SHALL BE AS FOLLOWS: MORTGAGE OWNERSHIP ASSIGNMENT DOCUMENT NAME OF MORTGAGEE OR ASSIGNEE:EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD03130-05-2 S. 667--B 2
________________________________________________________________________ ADDRESS: ________________________________________________________________________ PHONE NUMBER: ________________________________________________________________________ DATE THAT MORTGAGE OR ASSIGNMENT WAS ACKNOWLEDGED OR PROVED: ________________________________________________________________________ AUTHORIZED REPRESENTATIVE OF MORTGAGEE OR ASSIGNEE: ________________________________________________________________________ 3. FAILURE TO RECORD A MORTGAGE OR ASSIGNMENT OF MORTGAGE MADE BY A NON-NATURAL PERSON AFFECTING LAND IN THIS STATE BY THE DATE SPECIFIED IN SUBDIVISION ONE OF THIS SECTION, SHALL SUBJECT THE MORTGAGEE OR ASSIGNEE WHO FAILS TO COMPLY WITH THIS SECTION TO A CIVIL PENALTY OF TWO HUNDRED FIFTY DOLLARS. THE PENALTY SHALL BE ASSESSED BY, AND PAYABLE TO, THE RECORDING OFFICER. PENALTIES COLLECTED PURSUANT TO THIS SUBDIVISION SHALL BE USED TO SUPPORT RECORDING OFFICER OPERATIONS. S 2. This act shall take effect on the ninetieth day after it shall have become a law and shall apply to all mortgages or assignments of mortgages executed on or after such date.