Relates to requiring plaintiffs to furnish proof that notice of possible foreclosure was delivered to the defendant
Summary
This bill amends New York’s Real Property Actions and Proceedings Law, specifically the foreclosure notice provisions in section 1304. It would require lenders, assignees, and mortgage loan servicers to send the statutory pre-foreclosure notices by registered or certified mail and first-class mail with a request for official proof of delivery. The notice would still be deemed given when mailed, but only if the sender can produce official proof of delivery or, if delivery was refused, the original envelope marked by postal authorities as refused.
The bill also makes it an affirmative defense in a foreclosure proceeding if the plaintiff cannot furnish that proof of delivery or the refused-mail envelope. In addition, it preserves the existing requirement that the notice include a current list of at least five housing counseling agencies serving the county where the property is located, using the most recent Department of Financial Services listing. The Department would continue to make county-by-county agency lists available on its website.
The practical impact is to strengthen documentation requirements in foreclosure cases and give homeowners an additional procedural defense if the lender cannot prove the notice was actually delivered or properly refused. It would affect foreclosure plaintiffs, mortgage servicers, and assignees by adding a more stringent evidentiary burden before a foreclosure action can proceed, while reinforcing borrower notice protections and access to housing counseling resources.
The available record shows no committee transcript or vote history, so there is no documented debate or recorded opposition in the materials provided. Based on the bill’s text and caption, the measure appears aimed at consumer protection in foreclosure proceedings and likely would be viewed favorably by homeowner advocates, while lenders and servicers may be concerned about added compliance and litigation risk. Because there are no votes or hearing remarks, the overall sentiment cannot be measured directly, but the bill’s framing suggests a pro-borrower, notice-enforcement approach.
Impact
The bill would amend RPAPL section 1304 to require proof of delivery for pre-foreclosure notices and create an affirmative defense when that proof is unavailable, thereby increasing procedural protections for borrowers and imposing additional evidentiary and mailing requirements on lenders, assignees, and mortgage loan servicers. It would also continue the housing-counseling-agency notice requirement and rely on DFS county listings.
Sentiment
No committee transcript or vote data is available, so there is no recorded public sentiment in the provided materials. The bill’s text suggests a generally pro-consumer, homeowner-protection orientation, likely supported by borrower advocates and potentially opposed or scrutinized by mortgage industry stakeholders because of the added proof and compliance burden.
Contention
The main point of contention is likely the new requirement that plaintiffs furnish official proof of delivery, or a refused-mail envelope, before proceeding with foreclosure. Borrower advocates would likely support this as a safeguard against defective notice, while lenders, servicers, and assignees may argue it creates a stricter technical hurdle and increases the risk of foreclosure delays or dismissal. The bill also preserves and relies on DFS counseling-agency lists, but that aspect appears less controversial than the proof-of-delivery mandate.