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S T A T E O F N E W Y O R K
________________________________________________________________________
8244
2025-2026 Regular Sessions
I N A S S E M B L Y
May 5, 2025
___________
Introduced by M. of A. PEOPLES-STOKES -- read once and referred to the
Committee on Judiciary
AN ACT to amend the real property actions and proceedings law, in
relation to a right of action where registration fees are imposed on
mortgagees in default
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Subdivisions 3 and 8 of section 1393 of the real property
2 actions and proceedings law, as added by chapter 600 of the laws of
3 2022, are 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 8. RIGHT OF ACTION. ANY PERSON THAT HAS BEEN DAMAGED AS A RESULT OF
10 THE MORTGAGEE AND/OR ITS AGENTS PASSING DOWN FEES TO THE MORTGAGOR IN
11 DEFAULT SHALL BE ENTITLED TO BRING AN ACTION FOR RECOVERY OF DAMAGES IN:
12 (A) THE COUNTY IN WHICH ALL OR A SUBSTANTIAL PART OF THE EVENTS OR
13 OMISSIONS GIVING RISE TO THE CLAIM OCCURRED;
14 (B) THE COUNTY OF RESIDENCE FOR ANY ONE OF THE DEFENDANTS WHO IS A
15 NATURAL PERSON AT THE TIME THE CAUSE OF ACTION ACCRUED;
16 (C) THE COUNTY OF THE PRINCIPAL OFFICE IN THIS STATE OF ANY ONE OF THE
17 DEFENDANTS THAT IS NOT A NATURAL PERSON; OR
18 (D) THE COUNTY OF RESIDENCE FOR ANY PLAINTIFF IF THE PLAINTIFF IS A
19 NATURAL PERSON RESIDING IN THIS STATE.
20 9. The provisions of this section shall supersede any local law, ordi-
21 nance, or resolution requiring the registration of mortgages in default
22 that was enacted prior to the effective date of this section.
23 § 2. This act shall take effect immediately.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11543-01-5