NY State Senate Bill 2019-S7720A

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

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Sep 02, 2020	print number 7720a
Sep 02, 2020	amend and recommit to judiciary
Feb 11, 2020	referred to judiciary

Bill Amendments

Original

A (Active)

2019-S7720 - Details

Current Committee:: Senate Judiciary
Law Section:: Real Property Law
Laws Affected:: Amd §333, RP L; amd §§6-n & 14, Bank L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S1569
2023-2024: S2948

2019-S7720 - Summary

Relates to preventing fraudulent deed transfers; protects home owners from being misled into transferring their home to mortgage servicers.

2019-S7720 - Sponsor Memo

                                
 
BILL NUMBER: S7720

SPONSOR: SANDERS
 
TITLE OF BILL:

An act to amend the real property law and the banking law, in relation
to preventing fraudulent deed transfers

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would prevent unscrupulous investors from taking advantage of
distressed homeowners by having them signed a deed, in most cases
unknowingly, to transfer ownership of property under the guise that by
doing so, they would receive assistance in saving their property from
foreclosure.

 
SUMMARY OF PROVISIONS:

This legislation seeks to prevent distressed homeowners from being
tricked into signing a deed transferring ownership of their property to
a third parties because they are seeking assistance to save their home

from foreclosure. in two ways. First, by requiring all deeds to include
mandatory language in bold letters that clearly informs the title owner
by signing the deed they are transferring ownership of said property,
which must be signed and notarized. Second, prohibits any deed transfer
to be done in order to apply for a modification.  Authorizes the divi-
sion of financial services to investigate all fraudulent deed transfers.

 
JUSTIFICATION:

Distressed homeowners who are desperate to save their home from foreclo-
sure are often victims of fraudulent deed transfer by unscrupulous
investors through deceptive practices resulting in the permanent loss of
their home and property. Victims of fraudulent deed transfer often time
may not be aware that by signing a deed they are transferring ownership
to a third party. This legislation aims to protect distressed homeowners
by informing them of the consequences of signing such deed and author-
izes DFS to investigate such complaint, which currently does not exist.

 
PRIOR LEGISLATIVE HISTORY:

None.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

There is no fiscal impact to the State, but may generate revenue for the
state in the form of fines.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2019-S7720 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7720
 
                             I N  S E N A T E
 
                             February 11, 2020
                                ___________
 
 Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Judiciary
 
 AN ACT to amend the real property law and the banking law,  in  relation
   to preventing fraudulent deed transfers
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Section 333 of the real property law is amended by adding a
 new subdivision 4 to read as follows:
   4. A RECORDING OFFICER SHALL NOT  RECORD  OR  ACCEPT  FOR  RECORD  ANY
 CONVEYANCE OF REAL PROPERTY AFFECTING LAND IN NEW YORK STATE UNLESS SUCH
 CONVEYANCE  CONTAINS,  OR  IS  ACCOMPANIED  BY  AN  ADDENDUM CONTAINING,
 EXPLICIT AND BOLD LANGUAGE THAT READS, "YOU ARE HEREBY MADE  AWARE  THAT
 BY  SIGNING  THIS  DEED  YOU  ARE TRANSFERRING OWNERSHIP OF YOUR LAND OR
 HOME", WITH A SIGNATURE LINE UNDER SUCH LANGUAGE WHICH SHALL  CONTAIN  A
 NOTARIZED SIGNATURE OF THE TRANSFEROR.
   §  2. Section 6-n of the banking law is amended by adding a new subdi-
 vision 3 to read as follows:
   3. NO DEED TRANSFER FROM A BORROWER TO A  MORTGAGE  SERVICER  THAT  IS
 TRANSFERRED AS PART OF A MODIFICATION OF MORTGAGE TERMS SHALL BE CONSID-
 ERED  A  VALID DEED TRANSFER. THE DEPARTMENT SHALL HAVE THE AUTHORITY TO
 INVESTIGATE ANY DEED TRANSFER THAT IS IN VIOLATION OF THIS SUBDIVISION.
   § 3. Subdivision 1 of section 14 of the  banking  law  is  amended  by
 adding a new paragraph (t) to read as follows:
   (T)  TO PRESCRIBE THE METHODS AND STANDARDS UNDER WHICH THE DEPARTMENT
 SHALL RECEIVE AND  INVESTIGATE  CLAIMS  OF  FRAUDULENT  DEED  TRANSFERS,
 INCLUDING,  BUT  NOT  LIMITED TO DEED TRANSFERS THAT ARE IN VIOLATION OF
 SUBDIVISION THREE OF SECTION SIX-N OF THIS CHAPTER.
   § 4. This act shall take effect immediately.
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD15215-01-0

2019-S7720A (ACTIVE) - Details

Current Committee:: Senate Judiciary
Law Section:: Real Property Law
Laws Affected:: Amd §333, RP L; amd §§6-n & 14, Bank L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S1569
2023-2024: S2948

2019-S7720A (ACTIVE) - Summary

Relates to preventing fraudulent deed transfers; protects home owners from being misled into transferring their home to mortgage servicers.

2019-S7720A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S7720A

SPONSOR: SANDERS
 
TITLE OF BILL:

An act to amend the real property law and the banking law, in relation
to preventing fraudulent deed transfers

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would prevent unscrupulous investors from taking advantage of
distressed homeowners by having them signed a deed, in most cases
unknowingly, to transfer ownership of property under the guise that by
doing so, they would receive assistance in saving their property from
foreclosure.

 
SUMMARY OF PROVISIONS:

This legislation seeks to prevent distressed homeowners from being
tricked into signing a deed transferring ownership of their property to
a third parties because they are seeking assistance to save their home

from foreclosure. in two ways. First, by requiring all deeds to include
mandatory language in bold letters that clearly informs the title owner
by signing the deed they are transferring ownership of said property,
which must be signed and notarized. Second, prohibits any deed transfer
to be done in order to apply for a modification.  Authorizes the divi-
sion of financial services to investigate all fraudulent deed transfers.
It also makes it a crime to executive a deed transfers without providing
the required warning to owner of property.

 
JUSTIFICATION:

Distressed homeowners who are desperate to save their home from foreclo-
sure are often victims of fraudulent deed transfer by unscrupulous
investors through deceptive practices resulting in the permanent loss of
their home and property. Victims of fraudulent deed transfer often time
may not be aware that by signing a deed they are transferring ownership
to a third party. This legislation aims to protect distressed homeowners
by informing them of the consequences of signing such deed and author-
izes DFS to investigate such complaint, which currently does not exist.

 
PRIOR LEGISLATIVE HISTORY:

None.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

There is no fiscal impact to the State, but may generate revenue for the
state in the form of fines.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2019-S7720A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7720--A
 
                             I N  S E N A T E
 
                             February 11, 2020
                                ___________
 
 Introduced  by  Sen. SANDERS -- 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
 
 AN  ACT  to amend the real property law and the banking law, in relation
   to preventing fraudulent deed transfers

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 333 of the real property law is amended by adding a
 new subdivision 4 to read as follows:
   4.  A  RECORDING  OFFICER  SHALL  NOT  RECORD OR ACCEPT FOR RECORD ANY
 CONVEYANCE OF REAL PROPERTY AFFECTING LAND IN NEW YORK STATE UNLESS SUCH
 CONVEYANCE CONTAINS,  OR  IS  ACCOMPANIED  BY  AN  ADDENDUM  CONTAINING,
 EXPLICIT  AND  BOLD LANGUAGE THAT READS, "YOU ARE HEREBY MADE AWARE THAT
 BY SIGNING THIS DEED YOU ARE TRANSFERRING  OWNERSHIP  OF  YOUR  LAND  OR
 HOME",  WITH  A SIGNATURE LINE UNDER SUCH LANGUAGE WHICH SHALL CONTAIN A
 NOTARIZED SIGNATURE OF THE TRANSFEROR.  FAILURE OF A  PERSON  OR  CORPO-
 RATION  TO USE A DEED WITHOUT SUCH WARNING LANGUAGE OR IF THE TRANSFEROR
 DOES NOT SIGN THE ACKNOWLEDGEMENT TO COMPLETE SUCH DEED TRANSFER  PURSU-
 ANT TO THIS SECTION SHALL BE A CLASS E FELONY.
   §  2. Section 6-n of the banking law is amended by adding a new subdi-
 vision 3 to read as follows:
   3. NO DEED TRANSFER FROM A BORROWER TO A  MORTGAGE  SERVICER  THAT  IS
 TRANSFERRED AS PART OF A MODIFICATION OF MORTGAGE TERMS SHALL BE CONSID-
 ERED  A  VALID DEED TRANSFER. THE DEPARTMENT SHALL HAVE THE AUTHORITY TO
 INVESTIGATE ANY DEED TRANSFER THAT IS IN VIOLATION OF THIS SUBDIVISION.
   § 3. Subdivision 1 of section 14 of the  banking  law  is  amended  by
 adding a new paragraph (t) to read as follows:
   (T)  TO PRESCRIBE THE METHODS AND STANDARDS UNDER WHICH THE DEPARTMENT
 SHALL RECEIVE AND  INVESTIGATE  CLAIMS  OF  FRAUDULENT  DEED  TRANSFERS,
 INCLUDING,  BUT  NOT  LIMITED TO DEED TRANSFERS THAT ARE IN VIOLATION OF
 SUBDIVISION THREE OF SECTION SIX-N OF THIS CHAPTER.
   § 4. This act shall take effect immediately.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD15215-03-0

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Senate Bill S7720A

Sponsored By

Archive: Last Bill Status - In Senate Committee Judiciary Committee

Bill Amendments

2019-S7720 - Details

2019-S7720 - Summary

2019-S7720 - Sponsor Memo

2019-S7720 - Bill Text download pdf

2019-S7720A (ACTIVE) - Details

2019-S7720A (ACTIVE) - Summary

2019-S7720A (ACTIVE) - Sponsor Memo

2019-S7720A (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S7720A

Share this bill

Sponsored By

James Sanders Jr.

Archive: Last Bill Status - In Senate Committee Judiciary Committee

Bill Amendments

2019-S7720 - Details

2019-S7720 - Summary

2019-S7720 - Sponsor Memo

2019-S7720 - Bill Text download pdf

2019-S7720A (ACTIVE) - Details

2019-S7720A (ACTIVE) - Summary

2019-S7720A (ACTIVE) - Sponsor Memo

2019-S7720A (ACTIVE) - Bill Text download pdf

Comments