Relates to prosecution by the department of financial services (DFS) and municipalities of certain violations regarding residential real property by mortgage lenders and similar entities; directs DFS to promulgate standards of review of whether to prosecute such violations; requires deference to municipalities where both the municipality and DFS are authorized to prosecute such a violation; directs payments of civil penalties issued pursuant to such violations to be paid to DFS if DFS is the prosecuting entity.
Summary
Bill S02117 amends the real property actions and proceedings law to empower the Department of Financial Services (DFS) and municipalities to prosecute violations related to residential real properties. The bill mandates that the DFS establish standards for reviewing whether to pursue such prosecutions and requires that the DFS defer to municipalities when both entities are authorized to act on a violation. Furthermore, any civil penalties collected from successful prosecutions by the DFS will be allocated to the department to support future enforcement actions.
Impact
This legislation will enhance the enforcement capabilities of both the DFS and local municipalities regarding violations of residential property laws. By establishing a clear framework for prosecution and ensuring that municipalities have the first opportunity to address violations, the bill aims to streamline the enforcement process and potentially increase compliance among mortgage lenders and related entities. The allocation of civil penalties to the DFS for future prosecutions may also create a more sustainable enforcement mechanism.
Sentiment
The sentiment surrounding Bill S02117 appears to be mixed, as indicated by the voting history. While the bill received a favorable vote in committee and on the Senate floor, with a significant majority supporting it, there were notable dissenting votes, suggesting concerns among some legislators regarding the implications of the bill on local governance and enforcement priorities.
Contention
Points of contention primarily revolve around the balance of power between the DFS and local municipalities. Some legislators express concern that the bill may undermine local authority by allowing the DFS to step in if municipalities choose not to prosecute, potentially leading to conflicts over jurisdiction. Supporters argue that the bill is necessary to ensure consistent enforcement across the state, particularly in areas where local resources may be limited.
Same As
Relates to prosecution by the department of financial services (DFS) and municipalities of certain violations regarding residential real property by mortgage lenders and similar entities; directs DFS to promulgate standards of review of whether to prosecute such violations; requires deference to municipalities where both the municipality and DFS are authorized to prosecute such a violation; directs payments of civil penalties issued pursuant to such violations to be paid to DFS if DFS is the prosecuting entity.
Relates to prosecution by the department of financial services (DFS) and municipalities of certain violations regarding residential real property by mortgage lenders and similar entities; directs DFS to promulgate standards of review of whether to prosecute such violations; requires deference to municipalities where both the municipality and DFS are authorized to prosecute such a violation; directs payments of civil penalties issued pursuant to such violations to be paid to DFS if DFS is the prosecuting entity.
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.
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.
Authorizes municipalities in the county of Orange to add unpaid housing code violation penalties, costs and fines to such municipalities' annual tax levy in accordance with applicable law.