New York S 70: Relates to mortgage loan servicers

Bill Text

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S00070 Summary:

BILL NOS00070 

&nbsp

SAME ASSAME AS A03348

&nbsp

SPONSORKAVANAGH

&nbsp

COSPNSRADDABBO, BRISPORT, CLEARE, JACKSON, MAY, MYRIE, RAMOS, SANDERS, WEBB

&nbsp

MLTSPNSR

&nbsp

Amd §595-b, Bank L

&nbsp

Provides that any person who has been injured by reason of any violation of any such rules, regulations or policies as the superintendent may promulgate may bring an action in such person's own name; assert a counterclaim; or, if an action is commenced by the mortgagee or anyone acting on its behalf, bring a third party claim, against either the mortgagee and/or the mortgage servicer to enjoin any violations thereof; authorizes damages; makes related provisions.

Go to top S00070 Actions:

BILL NOS00070 

&nbsp

01/08/2025REFERRED TO BANKS

02/25/20251ST REPORT CAL.387

02/26/20252ND REPORT CAL.

03/03/2025ADVANCED TO THIRD READING 

03/24/2025PASSED SENATE

03/24/2025DELIVERED TO ASSEMBLY

03/24/2025referred to banks

01/07/2026died in assembly

01/07/2026returned to senate

01/07/2026REFERRED TO BANKS

02/26/20261ST REPORT CAL.438

03/04/20262ND REPORT CAL.

03/05/2026ADVANCED TO THIRD READING 

03/25/2026PASSED SENATE

03/25/2026DELIVERED TO ASSEMBLY

03/25/2026referred to banks

Go to topS00070 Committee&nbspVotes:

Go to topS00070 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS00070 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 70

 2025-2026 Regular Sessions

 IN SENATE

 (Prefiled)

 January 8, 2025
 ___________

 Introduced by Sens. KAVANAGH, ADDABBO, BRISPORT, JACKSON, MAY, MYRIE,
 RAMOS, SANDERS, WEBB -- read twice and ordered printed, and when
 printed to be committed to the Committee on Banks

 AN ACT to amend the banking law, in relation to mortgage loan servicers

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. Section 595-b of the banking law is amended by adding two
 2 new subdivisions 3 and 4 to read as follows:
 3 3. Actions and damages. (a) Any person who has been injured by reason
 4 of any violation of any such rules, regulations or policies as the
 5 superintendent may promulgate to effectuate the purposes of this arti-
 6 cle, including but not limited to 3 NYCRR 419 or any subsequently
 7 promulgated mortgage servicing rules pursuant to this subdivision, may:
 8 (i) Bring an action in such person's own name;
 9 (ii) Assert a counterclaim; or
 10 (iii) If an action is commenced by the mortgagee or anyone acting on
 11 its behalf, bring a third party claim, against either the mortgagee
 12 and/or the mortgage servicer to enjoin any violations thereof.
 13 (b) The person injured pursuant to this section:
 14 (i) May recover statutory damages of one thousand dollars per
 15 violation;
 16 (ii) May recover treble actual damages; and
 17 (iii) If awarded damages or injunctive relief, shall also be entitled
 18 to recover costs and expenses, including but not limited to reasonable
 19 attorneys' fees.
 20 (c) The mortgagee and the mortgage servicer shall be jointly and
 21 severally liable for any recoveries by an injured mortgagor in any
 22 action brought pursuant to this subdivision.
 23 4. Compliance with rules, regulations or policies. Material compliance
 24 with any such rules, regulations or policies as the superintendent may

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD00016-01-5

 S. 70 2

 1 promulgate to effectuate the purposes of this article, including but not
 2 limited to 3 NYCRR 419 or any subsequently promulgated mortgage servic-
 3 ing rules pursuant to this subdivision, shall be a condition precedent
 4 to commencing an action to foreclose upon a mortgage subject to this
 5 article or an action on the note, and the failure to materially comply
 6 with such rules, regulations or policies shall be a defense to a fore-
 7 closure action or action on the note, even if servicing has been trans-
 8 ferred to a different mortgage servicer when a foreclosure action or
 9 action on the note is commenced.
 10 § 2. This act shall take effect on the thirtieth day after it shall
 11 have become a law.

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