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A05856 Summary:

BILL NO    A05856 

SAME AS    No same as 

SPONSOR    Towns (MS)

COSPNSR    Stevenson, Colton

MLTSPNSR   

Amd R3408, CPLR

Relates to procedures at mandatory settlement conferences in residential
foreclosure actions and requires good faith settlement discussions in
connection with such foreclosure actions.
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A05856 Actions:

BILL NO    A05856 

03/02/2011 referred to judiciary
04/20/2011 enacting clause stricken
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A05856 Votes:

There are no votes for this bill in this legislative session.
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A05856 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A5856
 
SPONSOR: Towns (MS)
  TITLE OF BILL: An act to amend the civil practice law and rules, in relation to mandatory settlement conferences in residential foreclosure actions and requiring good faith settlement discussions in connection with such foreclosure actions   PURPOSE OR GENERAL IDEA OF BILL: This bill would require both mortga- gor and mortgagee to make good faith efforts to reach a mutually agree- able resolution that at a minimum, follow the guidelines of the United States Department of the Treasury Home Affordable Modification Program.   SUMMARY OF SPECIFIC PROVISIONS: This bill would add a good faith standard to be applied to negotiations between parties in a foreclosure action settlement conference, which does not presently exist.   EFFECTS OF PRESENT LAW WHICH THIS BILL WOULD ALTER: Section 1 (a) of rule 3408 of the Civil Practice Law and Rules was added by Chapter 472 of the Laws of 2008.   JUSTIFICATION: In 2008, the Legislature enacted the New York Respon- sible Lending Act, which became Chapter 472 of the Laws of 2008. This statute required mandatory settlement conferences for loan modifications in order to encourage resolution of foreclosure ations and keep mortga- gors in their homes. While the settlements have been successful, not- for-profit housing counselors and attorneys have indicated that a stron- ger and clearer standard would benefit the goal of settlement conferences.   PRIOR LEGISLATIVE HISTORY: A8945 2009, Referred to Judiciary Commit- tee   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: This bill will not have an impact on state finances.   EFFECTIVE DATE: This act shall take effect immediately.
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A05856 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          5856
 
                               2011-2012 Regular Sessions
 
                   IN ASSEMBLY
 
                                      March 2, 2011
                                       ___________
 
        Introduced  by  M.  of  A.  TOWNS,  STEVENSON,  COLTON  -- read once and
          referred to the Committee on Judiciary
 
        AN ACT to amend the civil practice law and rules, in relation to  manda-
          tory  settlement  conferences  in  residential foreclosure actions and
          requiring good faith settlement discussions in  connection  with  such
          foreclosure actions
 

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Subdivision (a) of rule 3408 of the civil practice law  and
     2  rules,  as  added by chapter 507 of the laws of 2009, is amended to read
     3  as follows:
     4    (a) In any residential foreclosure action involving  a  home  loan  as
     5  such  term is defined in section thirteen hundred four of the real prop-
     6  erty actions and proceedings law, in which the defendant is  a  resident
     7  of the property subject to foreclosure, the court shall hold a mandatory
     8  conference  within  sixty  days  after the date when proof of service is
     9  filed with the county clerk, or on  such  adjourned  date  as  has  been
    10  agreed  to  by  the  parties,  for  the  purpose  of  holding settlement
    11  discussions pertaining to the relative rights  and  obligations  of  the

    12  parties under the mortgage loan documents, including, but not limited to
    13  determining  whether  the  parties can reach a mutually agreeable resol-
    14  ution to help the defendant avoid losing his or her home, and evaluating
    15  the potential for a resolution in which payment schedules or amounts may
    16  be modified or other workout options may be agreed to, and for  whatever
    17  other  purposes the court deems appropriate.  Both the plaintiff and the
    18  defendant must make good faith efforts to  reach  a  mutually  agreeable
    19  resolution.  Such good faith efforts must include, at a minimum, follow-
    20  ing the United States Department of Treasury Home  Affordable  Modifica-
    21  tion  Program  guidelines issued on March fourth, two thousand nine, and
    22  any amendments thereto.
 

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09652-01-1

        A. 5856                             2
 
     1    § 2. Subdivision (a) of rule 3408 of the civil practice law and rules,
     2  as added by chapter 472 of the laws of  2008,  is  amended  to  read  as
     3  follows:
     4    (a)  In  any residential foreclosure action involving a high-cost home
     5  loan consummated between January first, two thousand three and September
     6  first, two thousand eight, or a subprime or nontraditional home loan, as
     7  those terms are defined under section thirteen hundred four of the  real
     8  property  actions and proceedings law, in which the defendant is a resi-

     9  dent of the property subject to foreclosure,  the  court  shall  hold  a
    10  mandatory  conference  within  sixty  days  after the date when proof of
    11  service is filed with the county clerk, or on such adjourned date as has
    12  been agreed to by the parties, for the  purpose  of  holding  settlement
    13  discussions  pertaining  to  the  relative rights and obligations of the
    14  parties under the mortgage loan documents, including, but not limited to
    15  determining whether the parties can reach a  mutually  agreeable  resol-
    16  ution to help the defendant avoid losing his or her home, and evaluating
    17  the potential for a resolution in which payment schedules or amounts may
    18  be  modified or other workout options may be agreed to, and for whatever
    19  other purposes the court deems appropriate.  Both the plaintiff and  the
    20  defendant  must  make  good  faith efforts to reach a mutually agreeable

    21  resolution. Such good faith efforts must include, at a minimum,  follow-
    22  ing  the  United States Department of Treasury Home Affordable Modifica-
    23  tion Program guidelines issued on March fourth, two thousand  nine,  and
    24  any amendments thereto.
    25    §  3.  This act shall take effect immediately; provided, however, that
    26  the amendments to subdivision (a) of rule 3408 of the civil practice law
    27  and rules made by section one of this act shall be subject to the  expi-
    28  ration  and  reversion  of such subdivision pursuant to subdivision e of
    29  section 25 of chapter 507 of the laws of 2009,  as  amended,  when  upon
    30  such date the provisions of section two of this act shall take effect.
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