Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|
---|---|
Jun 30, 2010 |
ordered to third reading cal.1396 |
Jun 14, 2010 |
referred to rules |
Senate Bill S8174
2009-2010 Legislative Session
Sponsored By
(D) Senate District
Archive: Last Bill Status - On Floor Calendar
- Introduced
-
- In Committee Assembly
- In Committee Senate
-
- On Floor Calendar Assembly
- On Floor Calendar Senate
-
- Passed Assembly
- Passed Senate
- Delivered to Governor
- Signed By Governor
Actions
Votes
co-Sponsors
(D, WF) 28th Senate District
2009-S8174 (ACTIVE) - Details
2009-S8174 (ACTIVE) - Summary
Provides that only the owner and holder of a mortgage and note, or its agent, shall have standing to commence a mortgage foreclosure action; lack of standing shall be defense that may be raised at any time; requires the plaintiff in a foreclosure action to affirm that it is the holder and owner, or its designed agent, of the subject mortgage and note; the summons and complaint shall include a copy of the original mortgage and note, and all endorsements, assignments and transfers thereof, and any delegations of authority by the owner and holder of the mortgage and note.
2009-S8174 (ACTIVE) - Sponsor Memo
BILL NUMBER:S8174 TITLE OF BILL: An act to amend the real property actions and proceedings law, in relation to standing to commence an action to foreclose a mortgage PURPOSE: During the past 4 years, both before and after the stock market crash of 2008, and the previous and associated meltdown of the housing market, there has been a nationwide increase in foreclosures throughout the country. However, many of the foreclosure actions initiated by lenders and trusts to obtain the securitized debt obligation (the property)," have called into question the inherent legality of the proceedings, due to the plaintiff s lack of "standing" and in many cases it is simply not clear who actually owns the mortgage or debt. Despite the fact that in order to have an appropriate foreclosure proceeding the filing party must legally have "standing to commence a foreclosure action" against a mortgagor or borrower, many lenders and trusts alike continue to move forward with bringing a legal action against borrowers when many of these lenders don't even own the debts in the first place.
2009-S8174 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 8174 I N S E N A T E June 14, 2010 ___________ Introduced by Sen. KLEIN -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend the real property actions and proceedings law, in relation to standing to commence an action to foreclose a mortgage THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 1 of section 1302 of the real property actions and proceedings law, as amended by chapter 472 of the laws of 2008, is amended to read as follows: 1. Any complaint served in a proceeding initiated pursuant to this article relating to a high-cost home loan or a subprime home loan, as such terms are defined in section six-l and six-m of the banking law, respectively, must contain an affirmative allegation that at the time the proceeding is commenced, the plaintiff[: (a) is the owner and holder of the subject mortgage and note, or has been delegated the authority to institute a mortgage foreclosure action by the owner and holder of the subject mortgage and note; and (b)] has complied with all of the provisions of section five hundred ninety-five-a of the banking law and any rules and regulations promul- gated thereunder, section six-l or six-m of the banking law, and SUBDI- VISION TWO OF SECTION THIRTEEN HUNDRED TWO-A AND section thirteen hundred four of this article. S 2. The real property actions and proceedings law is amended by adding a new section 1302-a to read as follows: S 1302-A. STANDING TO COMMENCE AN ACTION. 1. NO PERSON SHALL HAVE STANDING TO COMMENCE AN ACTION PURSUANT TO THIS ARTICLE UNLESS IT IS THE OWNER AND HOLDER OF THE SUBJECT MORTGAGE AND NOTE, OR HAS BEEN DELEGATED THE AUTHORITY TO INSTITUTE A MORTGAGE FORECLOSURE ACTION BY THE OWNER AND HOLDER OF THE SUBJECT MORTGAGE AND NOTE. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION (E) OF RULE THIRTY-TWO HUNDRED ELEVEN OF THE CIVIL PRACTICE LAW AND RULES, ANY DEFENSE BASED ON THE PLANITIFF'S LACK OF STANDING IN A FORECLOSURE PROCEEDING SHALL NOT BE WAIVED IF A DEFEND- ANT FAILS TO RAISE THE DEFENSE IN A RESPONSIVE PLEADING OR PRE-ANSWER MOTION TO DISMISS. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted.
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