Signed by Governor Andrew Cuomo

Vote Smart's Synopsis:

Vote to pass a bill that requires mortgage lenders to provide notice for foreclosure proceedings.

Highlights:

• Requires the authorized lender, upon the commencement of the foreclosure

proceeding, to transmit to the Department of Financial Services  proof that the Department of Housing and Urban Development has granted prior approval

to accelerate the loan, proof of the default notice to the mortgagor, and any such information relating to the loans and the mortgagor as the department shall determine to be necessary (Sec. 1-2).

• Requires the notice to include mortgagor's rights in the foreclosure process and contact information for legal service organizations which may be able to assist the

mortgagor with the mortgage default and/or foreclosure (Sec. 1-2).

• Specifies that no authorized lender shall make an advance payment for any obligation arising from mortgaged real property (Sec. 1-4).

• Requires the mortgagee to provide information to the department about loans receiving such loss mitigation assistance, including maintaining loan level, loss mitigation data, and providing the department with the following information for loans associated with a repayment plan (Sec. 1-5):

• monthly surplus income;

• term of repayment plan;

• amount of monthly repayment plan payment;

• due date of next monthly payment;

• when a mortgagor experiences a hardship; and

• reason for hardship.

• Specifies that failure to comply with the above provisions shall be a complete defense to a foreclosure action (Sec. 1-7).

Full Bill Text