S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    70
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                                (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:
 
   Section 1. Section 595-b of the banking law is amended by  adding  two
 new subdivisions 3 and 4 to read as follows:
   3.  ACTIONS AND DAMAGES. (A) ANY PERSON WHO HAS BEEN INJURED BY REASON
 OF ANY VIOLATION OF ANY SUCH  RULES,  REGULATIONS  OR  POLICIES  AS  THE
 SUPERINTENDENT  MAY  PROMULGATE TO EFFECTUATE THE PURPOSES OF THIS ARTI-
 CLE, INCLUDING BUT NOT LIMITED  TO  3  NYCRR  419  OR  ANY  SUBSEQUENTLY
 PROMULGATED MORTGAGE SERVICING RULES PURSUANT TO THIS SUBDIVISION, MAY:
   (I) BRING AN ACTION IN SUCH PERSON'S OWN NAME;
   (II) ASSERT A COUNTERCLAIM; OR
   (III)  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.
   (B) THE PERSON INJURED PURSUANT TO THIS SECTION:
   (I)  MAY  RECOVER  STATUTORY  DAMAGES  OF  ONE  THOUSAND  DOLLARS  PER
 VIOLATION;
   (II) MAY RECOVER TREBLE ACTUAL DAMAGES; AND
   (III) IF AWARDED DAMAGES OR INJUNCTIVE RELIEF, SHALL ALSO BE  ENTITLED
 TO  RECOVER  COSTS AND EXPENSES, INCLUDING BUT NOT LIMITED TO REASONABLE
 ATTORNEYS' FEES.
   (C) THE MORTGAGEE AND THE  MORTGAGE  SERVICER  SHALL  BE  JOINTLY  AND
 SEVERALLY  LIABLE  FOR  ANY  RECOVERIES  BY  AN INJURED MORTGAGOR IN ANY
 ACTION BROUGHT PURSUANT TO THIS SUBDIVISION.
   4. COMPLIANCE WITH RULES, REGULATIONS OR POLICIES. MATERIAL COMPLIANCE
 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
 
 PROMULGATE TO EFFECTUATE THE PURPOSES OF THIS ARTICLE, INCLUDING BUT NOT
 LIMITED  TO 3 NYCRR 419 OR ANY SUBSEQUENTLY PROMULGATED MORTGAGE SERVIC-
 ING RULES PURSUANT TO THIS SUBDIVISION, SHALL BE A  CONDITION  PRECEDENT
 TO  COMMENCING  AN  ACTION  TO FORECLOSE UPON A MORTGAGE SUBJECT TO THIS
 ARTICLE OR AN ACTION ON THE NOTE, AND THE FAILURE TO  MATERIALLY  COMPLY
 WITH  SUCH  RULES, REGULATIONS OR POLICIES SHALL BE A DEFENSE TO A FORE-
 CLOSURE ACTION OR ACTION ON THE NOTE, EVEN IF SERVICING HAS BEEN  TRANS-
 FERRED  TO  A  DIFFERENT  MORTGAGE SERVICER WHEN A FORECLOSURE ACTION OR
 ACTION ON THE NOTE IS COMMENCED.
   § 2. This act shall take effect on the thirtieth day  after  it  shall
 have become a law.