Relates to increasing the maximum civil penalty from $500 to $1000 per day per property for each day the mortgagee or agent of the mortgagee has been in violation.
Summary
A00305 amends the Real Property Actions and Proceedings Law to increase the maximum civil penalty for certain violations by a mortgagee or the mortgagee’s agent from $500 to $1,000 per day per property. The bill applies when a hearing officer or court finds, by a preponderance of the evidence, that the mortgagee or its agent violated section 1308, and it allows the penalty to be imposed for each day the violation continued.
In practical terms, the bill strengthens the enforcement mechanism tied to mortgage-related compliance obligations, particularly for lenders, loan servicers, and their agents. The change does not alter the underlying duty itself, but it raises the financial consequences for noncompliance and may increase pressure on mortgagees to correct violations more quickly.
Impact
The bill would amend section 1308 of the Real Property Actions and Proceedings Law to double the maximum daily civil penalty from $500 to $1,000 per property for violations by a mortgagee or mortgagee’s agent. This would affect enforcement proceedings before hearing officers or courts and could increase liability exposure for mortgage lenders, servicers, and related agents found in violation of the statute. The bill takes effect immediately and does not otherwise change the substantive compliance requirements of the underlying law.
Sentiment
No committee transcript or recorded vote information is available, so there is no documented debate or formal sentiment from legislative proceedings. Based on the bill text alone, the measure appears to reflect a punitive enforcement approach aimed at encouraging compliance with mortgage-related legal obligations. The available context suggests a straightforward policy choice to increase deterrence rather than a broader restructuring of the law.
Contention
The main point of contention would likely be the size of the penalty increase and whether doubling the maximum daily fine is necessary or excessive. Supporters would likely argue that stronger penalties are needed to deter persistent violations and protect property owners or affected parties, while opponents may contend that the higher penalty could be burdensome for mortgagees, especially in cases involving technical, disputed, or quickly corrected violations. No specific objections or supporters are identified in the available materials.
Relates to increasing the maximum civil penalty from $500 to $1000 per day per property for each day the mortgagee or agent of the mortgagee has been in violation.
Prohibits mortgagee from refusing to accept partial mortgage payments from a mortgagor which does not bring the mortgagor current on his or her mortgage debt.
Prohibits mortgagee from refusing to accept partial mortgage payments from a mortgagor which does not bring the mortgagor current on his or her mortgage debt.
Authorizes municipalities and the department of financial services to seek civil penalties for violations of the duty to maintain a foreclosed property in an amount of up to $500 per day for each day such violation persists after the judgement of foreclosure has been issued.
Prohibits mortgagee from refusing to accept partial mortgage payments from a mortgagor which does not bring the mortgagor current on such mortgagor's mortgage debt.
Authorizes municipalities and the department of financial services to seek civil penalties for violations of the duty to maintain a foreclosed property in an amount of up to $650 per day for each day such violation persists after the judgement of foreclosure has been issued.