STATE OF NEW YORK
August 17, 2020
Introduced by COMMITTEE ON RULES -- (at request of M. of A. Peoples-
Stokes, Weinstein) -- read once and referred to the Committee on Judi-
AN ACT to amend the real property actions and proceedings law, in
relation to prohibiting the registration of mortgages in default prior
to the filing of a notice of pendency
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The real property actions and proceedings law is amended by
2 adding a new section 1393 to read as follows:
3 § 1393. Mortgages in default. 1. No local law, ordinance or resolution
4 shall allow for the registration of residential mortgages in default
5 prior to a mortgagee filing a notice of pendency in a court of competent
7 2. No such local law, ordinance or resolution shall require a homeown-
8 er or occupant to register.
9 3. Any local law, ordinance or resolution that allows for the regis-
10 tration of residential mortgages in default may impose a registration
11 fee not exceeding seventy-five dollars annually. A mortgagee and/or its
12 agents are prohibited from passing along such fees to the mortgagor in
14 4. For the purposes of this section, a mortgage default occurs when a
15 mortgagor fails to fulfill its obligations under a mortgage agreement.
16 5. "Registration" shall mean the collection, publication or posting,
17 public or otherwise, of residential mortgages in default by a local
18 governing body or an agency thereof, or any third-party entity that
19 contracts with such local governing body.
20 6. "Notice of pendency" shall have the same meaning as defined in
21 section sixty-five hundred one of the civil practice law and rules.
22 7. A local governing body, through a local law, ordinance or resol-
23 ution, may impose a fine on a mortgagee for noncompliance with this
24 section or any local law, ordinance or resolution that allows for the
25 registration of residential mortgages in default. A mortgagee and/or its
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 is old law to be omitted.
A. 10898 2
1 agents are prohibited from passing along such fines to the mortgagor in
3 8. The provisions of this section shall supersede any local law, ordi-
4 nance, or resolution requiring the registration of mortgages in default
5 that was enacted prior to the effective date of this section.
6 § 2. This act shall take effect immediately.