Governor Signs Package of Homeowner Consumer Protection Bills
August 19th, 2019
Governor Cuomo signed a package of three bills aimed at protecting homeowners in New York. The legislation includes the following:
- Deed Fraud and Mortgage Scams (A.5615/S.1688) – Expands the existing safeguards provided under the Home Equity Theft Protection Act (“HETPA”) by covering not only homes in foreclosure, but also homes that are in default. The bill also expands the disclosure of terms of distressed property consultant contracts and give homeowners additional time and information before deciding to transfer ownership of their home. The bill also establishes a process by which a district attorney can file a motion to quiet title in the supreme court of the appropriate jurisdiction on behalf of the homeowner following a criminal conviction. This bill takes effect immediately.
- Payment of Homeowners’ Association Fees (S.4182/A.1800) – Requires holders of mortgages on vacant and abandoned residential properties to continue paying HOA and cooperative fees during the pending foreclosure. This bill takes effect immediately.
- Bank Obligations During Sale of Mortgage (A.92A/S.5017A) – Requires that a bank or financial institution who enters into negotiations to modify a mortgage and sells or transfers the mortgage during the modification process be responsible for providing the borrower with a written list of all the documents relating to the loan modification that were furnished to the bank or financial institution to which the mortgage was sold or transferred. The bill also stipulates that if a borrower has been approved in writing for a modification to avoid foreclosure and the servicing of the borrower’s loan is sold or transferred to another mortgage servicer that the subsequent mortgage servicer be required to assume all duties and obligations related to any previously approved modification or other foreclosure alternative.
Governor Cuomo said:
“These measures enact sweeping protections for homeowners and close loopholes in order to level the playing field and preserve the American Dream for New Yorkers in every part of this great state. With these new protections, we take one more step toward a fairer, stronger New York for all.”