NY State Senate Bill 2017-S475

Senate Bill S475

2017-2018 Legislative Session

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

download bill text pdf

Archive: Last Bill Status - In Senate Committee Judiciary Committee

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

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to judiciary
Jan 04, 2017	referred to judiciary

2017-S475 (ACTIVE) - Details

See Assembly Version of this Bill:: A1387
Current Committee:: Senate Judiciary
Law Section:: Real Property Law
Laws Affected:: Add §291-k, RP L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S7515, A8684
2011-2012: S667, A626
2013-2014: S44, A1082
2015-2016: S1278, A163
2019-2020: S4806, A5613
2021-2022: S212
2023-2024: S526

2017-S475 (ACTIVE) - Summary

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.

2017-S475 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S475

 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-n.
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.

 LEGISLATIVE HISTORY :

2015-2016-S.1278
2013-2014 -S.44
2011-12: S.667-B
2009 - Referred to Judiciary

 FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS :

Undetermined.

 EFFECTIVE DATE :
Ninety days after becoming law.

2017-S475 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    475
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 4, 2017
                                ___________
 
 Introduced  by  Sen. PERALTA -- read twice and ordered printed, and when
   printed to be committed to the Committee on Judiciary
 
 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-k to read as follows:
   § 291-K. 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:
 
 ________________________________________________________________________
 
 ADDRESS:
 
 ________________________________________________________________________
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD00075-01-7

 S. 475                              2
 
 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.
   §  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.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.