Prohibits mortgagee from refusing to accept partial mortgage payments
Summary
A10665 would amend New York’s Real Property Law to add a new section prohibiting a mortgagee from refusing to accept a partial mortgage payment from a mortgagor when that payment does not bring the borrower fully current on the mortgage debt. In practical terms, the bill would require lenders or loan servicers to accept partial payments rather than rejecting them outright, at least in the circumstances covered by the bill.
The measure is narrow in scope and does not change the underlying amount owed, the payment schedule, or the lender’s ability to pursue other remedies for default. It expressly preserves any other contractual or statutory rights available to the mortgagor, meaning the bill is aimed at payment acceptance practices rather than broader foreclosure or loan-modification rules. The bill would take effect 30 days after becoming law.
Impact
The bill would add a new borrower-protection provision to the Real Property Law, specifically regulating mortgagee conduct when a mortgagor tenders less than the full amount due. It would affect mortgage lenders, loan servicers, and borrowers by limiting a lender’s ability to reject partial mortgage payments in situations where the payment does not cure the delinquency. The bill does not appear to alter foreclosure law directly, but it could affect default management, payment processing, and how lenders handle delinquent accounts.
Sentiment
Based on the bill text and available context, the bill appears to be framed as a consumer-protection measure intended to help mortgagors avoid unnecessary rejection of payments. There is no recorded committee transcript or vote history in the provided materials, so there is no evidence of formal support or opposition in the available record. The absence of discussion suggests the bill was still early in the legislative process and had not yet generated documented debate.
Contention
The main potential point of contention is whether requiring acceptance of partial payments could interfere with lenders’ existing servicing practices, default remedies, or contractual rights. Supporters would likely view the bill as protecting borrowers from rigid payment-rejection policies, while opponents might argue that accepting partial payments could complicate delinquency accounting or create uncertainty about cure status. The bill attempts to address that concern by stating that it does not bar other contractual or statutory rights or remedies.
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.