Modifies the cap on the registration fee for the registration of residential mortgages in default which may be imposed by a local law, ordinance or resolution.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A7564A
SPONSOR: Thiele
 
TITLE OF BILL:
An act to amend the real property actions and proceedings law, in
relation to registration of mortgages in default
 
PURPOSE::
To provide municipalities with a fee structure for the maintenance of
foreclosure registration databases.
 
SUMMARY OF SPECIFIC PROVISIONS::
Section 1 amends the law to allow for the imposition of a fee of up to
five hundred dollars on an annual basis.
Section two provides for an immediate effective date.
 
JUSTIFICATION::
Chapter 600 of 2022 was originally enacted to ensure that any fees
charged by municipalities to enrolling in the mortgage foreclosure data-
base are not passed along to the foreclosed upon homeowner. This prac-
tice ensures that the new owner of the foreclosed property is properly
charged with the database fees. These databases are critical tools for
municipalities to combat blight and ensure upkeep of the properties
while they move through the court system. As set the fees are inadequate
to reflect the costs of maintaining these databases and are also incon-
sistent with local laws establishing these databases throughout the
State. Municipalities had previously budgeted for these fees and have
working databases in place. This legislation will ensure municipalities
do not have to repeal or amend their existing programs. This will bring
fees in line with what is done in New Jersey
 
LEGISLATIVE HISTORY::
This is a new bill.
 
FISCAL IMPLICATIONS::
None to the State.
 
EFFECTIVE DATE::
Immediately.
STATE OF NEW YORK
________________________________________________________________________
7564--A
2023-2024 Regular Sessions
IN ASSEMBLY
May 25, 2023
___________
Introduced by M. of A. THIELE -- read once and referred to the Committee
on Judiciary -- committee discharged, bill amended, ordered reprinted
as amended and recommitted to said committee
AN ACT to amend the real property actions and proceedings law, in
relation to registration of mortgages in default
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 3 of section 1393 of the real property actions
2 and proceedings law, as added by chapter 600 of the laws of 2022, is
3 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] five 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 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11487-04-3