S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7338

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                             April 29, 2011
                               ___________

Introduced by M. of A. BARRON -- read once and referred to the Committee
  on Judiciary

AN  ACT to amend the civil practice law and rules, in relation to manda-
  tory settlement conferences in  residential  foreclosure  actions  and
  requiring  good  faith  settlement discussions in connection with such
  foreclosure actions

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. Subdivision (a) of rule 3408 of the civil practice law and
rules, as added by chapter 507 of the laws of 2009, is amended  to  read
as follows:
  (a)  In  any  residential  foreclosure action involving a home loan as
such term is defined in section thirteen hundred four of the real  prop-
erty  actions  and proceedings law, in which the defendant is a resident
of the property subject to foreclosure, the court shall hold a mandatory
conference within sixty days after the date when  proof  of  service  is
filed  with  the  county  clerk,  or  on such adjourned date as has been
agreed to  by  the  parties,  for  the  purpose  of  holding  settlement
discussions  pertaining  to  the  relative rights and obligations of the
parties under the mortgage loan documents, including, but not limited to
determining whether the parties can reach a  mutually  agreeable  resol-
ution to help the defendant avoid losing his or her home, and evaluating
the potential for a resolution in which payment schedules or amounts may
be  modified or other workout options may be agreed to, and for whatever
other purposes the court deems appropriate.  BOTH THE PLAINTIFF AND  THE
DEFENDANT  MUST  MAKE  GOOD  FAITH EFFORTS TO REACH A MUTUALLY AGREEABLE
RESOLUTION. SUCH GOOD FAITH EFFORTS MUST INCLUDE, AT A MINIMUM,  FOLLOW-
ING  THE  UNITED STATES DEPARTMENT OF TREASURY HOME AFFORDABLE MODIFICA-
TION PROGRAM GUIDELINES ISSUED ON MARCH FOURTH, TWO THOUSAND  NINE,  AND
ANY AMENDMENTS THERETO.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09652-01-1

              

A. 7338                             2

  S 2. Subdivision (a) of rule 3408 of the civil practice law and rules,
as  added  by  chapter  472  of  the laws of 2008, is amended to read as
follows:
  (a)  In  any residential foreclosure action involving a high-cost home
loan consummated between January first, two thousand three and September
first, two thousand eight, or a subprime or nontraditional home loan, as
those terms are defined under section thirteen hundred four of the  real
property  actions and proceedings law, in which the defendant is a resi-
dent of the property subject to foreclosure,  the  court  shall  hold  a
mandatory  conference  within  sixty  days  after the date when proof of
service is filed with the county clerk, or on such adjourned date as has
been agreed to by the parties, for the  purpose  of  holding  settlement
discussions  pertaining  to  the  relative rights and obligations of the
parties under the mortgage loan documents, including, but not limited to
determining whether the parties can reach a  mutually  agreeable  resol-
ution to help the defendant avoid losing his or her home, and evaluating
the potential for a resolution in which payment schedules or amounts may
be  modified or other workout options may be agreed to, and for whatever
other purposes the court deems appropriate.  BOTH THE PLAINTIFF AND  THE
DEFENDANT  MUST  MAKE  GOOD  FAITH EFFORTS TO REACH A MUTUALLY AGREEABLE
RESOLUTION. SUCH GOOD FAITH EFFORTS MUST INCLUDE, AT A MINIMUM,  FOLLOW-
ING  THE  UNITED STATES DEPARTMENT OF TREASURY HOME AFFORDABLE MODIFICA-
TION PROGRAM GUIDELINES ISSUED ON MARCH FOURTH, TWO THOUSAND  NINE,  AND
ANY AMENDMENTS THERETO.
  S  3.  This act shall take effect immediately; provided, however, that
the amendments to subdivision (a) of rule 3408 of the civil practice law
and rules made by section one of this act shall be subject to the  expi-
ration  and  reversion  of such subdivision pursuant to subdivision e of
section 25 of chapter 507 of the laws of 2009,  as  amended,  when  upon
such date the provisions of section two of this act shall take effect.