Enacts the "deed protection act"

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Enacts the "deed protection act"

Enacts the "deed protection act" Enacts the "deed protection act" in relation to prohibiting a mortgage banker or mortgage loan servicer from commencing, maintaining, or proceeding with a foreclosure action on a mortgage loan where such mortgage banker or mortgage loan servicer knows or has reason to know that the mortgage securing such loan is dependent on a deed, conveyance, or other instrument affecting title to residential real property that was procured by fraud, forgery, or other unlawful means.

What This Bill Does

• Enacts the "deed protection act" Enacts the "deed protection act" in relation to prohibiting a mortgage banker or mortgage loan servicer from commencing, maintaining, or proceeding with a foreclosure action on a mortgage loan where such mortgage banker or mortgage loan servicer knows or has reason to know that the mortgage securing such loan is dependent on a deed, conveyance, or other instrument affecting title to residential real property that was procured by fraud, forgery, or other unlawful means.

Limits and Unknowns

• This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Official Summary Text

Enacts the "deed protection act"
Enacts the "deed protection act" in relation to prohibiting a mortgage banker or mortgage loan servicer from commencing, maintaining, or proceeding with a foreclosure action on a mortgage loan where such mortgage banker or mortgage loan servicer knows or has reason to know that the mortgage securing such loan is dependent on a deed, conveyance, or other instrument affecting title to residential real property that was procured by fraud, forgery, or other unlawful means.

Current Bill Text

S T A T E   O F   N E W   Y O R K
        ________________________________________________________________________

                                          9554

                                  I N  A S S E M B L Y

                                    January 14, 2026
                                       ___________

        Introduced  by M. of A. MEEKS -- read once and referred to the Committee
          on Banks

        AN ACT to amend the banking law,  in  relation  to  enacting  the  "deed
          protection act"

          THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
        BLY, DO ENACT AS FOLLOWS:

     1    Section 1. Short title. This act shall be known and may  be  cited  as
     2  the "deed protection act".
     3    § 2. The banking law is amended by adding a new section 6-q to read as
     4  follows:
     5    §  6-Q.  LOANS  OBTAINED BY DEED THEFT. NO FINANCIAL INSTITUTION SHALL
     6  TAKE POSSESSION OF ANY PROPERTY BASED ON THE FAILURE TO REPAY  ANY  LOAN
     7  PROVIDED  BY  SUCH  FINANCIAL INSTITUTION FOR SUCH PROPERTY IF SUCH LOAN
     8  WAS PROVIDED TO A PERSON WHO OBTAINED THE TITLE TO SUCH PROPERTY BY DEED
     9  THEFT, AND SUCH FINANCIAL INSTITUTION FAILED TO CONDUCT  REASONABLE  DUE
    10  DILIGENCE  TO  DETERMINE  WHETHER SUCH PERSON OBTAINED THE TITLE TO SUCH
    11  PROPERTY BY DEED THEFT PRIOR TO PROVIDING SUCH LOAN TO SUCH PERSON.
    12    § 3. This act shall take effect immediately.






         EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14344-02-6