NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8244A
SPONSOR: Peoples-Stokes TITLE OF BILL:
An act to amend the real property actions and proceedings law, in
relation to registrations of residential mortgages in default
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to update the law related to fees for regis-
trations of residential mortgages in default.
SUMMARY OF PROVISIONS:
Section 1 Amends subdivision 3 of section 1393 of the real property
actions and proceedings law to increase the fee allowed to be imposed by
local law, ordinance or resolution for the registration of residential
mortgages in default from $75 to $300 annually.
Section 2 provides for an immediate effective date.
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):
The amended version of the bill removes private right of action
provisions.
JUSTIFICATION:
Mortgages in default registries can be a useful tool for municipalities
to know which properties may be at risk of foreclosure. This bill is
needed to ensure these registries can be sustained through an adequate
annual fee while continuing to ensure mortgagors are adequately
protected from being assessed fees for such registries. The fee cannot
be passed onto mortgage holders.
PRIOR LEGISLATIVE HISTORY:
This is a new bill.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None for the State, to be determined for participating local govern-
ments.
EFFECTIVE DATE:
Immediately.
STATE OF NEW YORK
________________________________________________________________________
8244--A
2025-2026 Regular Sessions
IN ASSEMBLY
May 5, 2025
___________
Introduced by M. of A. PEOPLES-STOKES -- read once and referred to the
Committee on Judiciary -- recommitted to the Committee on Judiciary in
accordance with Assembly Rule 3, sec. 2 -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee
AN ACT to amend the real property actions and proceedings law, in
relation to registrations of residential mortgages in default
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 3 of section 1393 of the real property actions
2 and proceedings law, as added by chapter 600 of the laws of 2022, is
3 amended to read as follows:
4 3. Any local law, ordinance or resolution that allows for the regis-
5 tration of residential mortgages in default may impose a registration
6 fee not exceeding [seventy-five] three hundred dollars annually. A mort-
7 gagee and/or its agents are prohibited from passing along such fees to
8 the mortgagor in default.
9 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11543-02-6
