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NY S00070
Bill
Status
3/24/2025
Primary Sponsor
Brian Kavanagh
Click for details
AI Summary
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Creates a private right of action allowing individuals injured by violations of mortgage servicing rules (including 3 NYCRR 419) to bring lawsuits, assert counterclaims, or file third-party claims against mortgagees and/or mortgage servicers
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Establishes recoverable damages of $1,000 per violation in statutory damages, plus treble (triple) actual damages, and requires payment of costs, expenses, and reasonable attorneys' fees for prevailing plaintiffs
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Makes mortgagees and mortgage servicers jointly and severally liable for any damages recovered by injured mortgagors
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Requires material compliance with mortgage servicing rules as a condition precedent to commencing foreclosure actions or actions on the note
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Provides that failure to materially comply with servicing rules serves as a defense to foreclosure, even if servicing was transferred to a different servicer before the action was commenced
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Takes effect 30 days after becoming law
Legislative Description
Provides that any person who has been injured by reason of any violation of any such rules, regulations or policies as the superintendent may promulgate may bring an action in such person's own name; assert a counterclaim; or, 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; authorizes damages; makes related provisions.
Last Action
ADVANCED TO THIRD READING
3/5/2026