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.
Summary
Bill S00070 amends the New York banking law to enhance protections for individuals injured by violations of mortgage servicing rules. It allows affected individuals to bring legal actions against mortgagees and servicers for violations of regulations established by the superintendent. The bill stipulates that individuals may recover statutory damages, treble damages, and attorney's fees, thereby providing a financial incentive for individuals to pursue claims against non-compliant mortgage servicers. Additionally, it establishes that compliance with these regulations is a prerequisite for initiating foreclosure actions, offering a defense for borrowers against such actions if the servicer has failed to comply with the rules.
Impact
The bill significantly alters the landscape of mortgage servicing in New York by empowering borrowers with the right to sue for violations of servicing regulations. It introduces a mechanism for individuals to seek damages and holds mortgagees and servicers jointly liable for violations. This could lead to increased accountability among mortgage servicers and may result in a reduction of wrongful foreclosures, as compliance with servicing rules becomes a condition for initiating foreclosure actions.
Sentiment
The sentiment surrounding Bill S00070 appears to be mixed. Supporters argue that it provides necessary protections for borrowers and enhances accountability in the mortgage servicing industry. However, opponents express concerns about the potential for increased litigation and the burden it may place on mortgage servicers, which could ultimately affect the availability of mortgage credit.
Contention
Notable points of contention include the balance between protecting borrowers and the potential for increased litigation against mortgage servicers. Supporters, primarily consumer advocacy groups, argue for stronger protections for borrowers, while some industry representatives and lawmakers express concern that the bill could lead to excessive lawsuits and hinder the mortgage lending process.
Same As
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.
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.
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 his or her 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.
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 his or her 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.
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.
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.