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News & Press: Regulatory

Take A Moment to "Vote No to S4781"

Thursday, June 2, 2016   (0 Comments)
Posted by: Bonnie Nachamie
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Please contact your State Senator and urge him/her to vote “No” to S4781:."Abandoned Property Neighborhood Relief Act of 2016";imposes a duty on the mortgagee or its loan servicing agent to maintain property secured by delinquent mortgage.

As reported by Rob Chrisman, last week the New York State Assembly passed A6932 by a wide margin, and it appears that the Senate companion bill, S4781, is gaining momentum. Lenders doing business in the state of New York should be very concerned about this legislation. If passed, the bill would require lenders/servicers to maintain properties once they are vacant and abandoned, regardless of the fact that the lender/servicer has no ownership in the property and is in store for a foreclosure process that will take at least 3 years. The fine for noncompliance will be $1,000 per day. It is very probable that many lenders will leave the state, due to the legal risk and financial burden that will be placed on them when properties become vacant and abandoned. 


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