New York Senate Bill S08143-A
On May 2, 2008, a bill was introduced by about a dozen New York State Senators that would amend the real property and banking laws of New York by creating new crimes relating to mortgage fraud and foreclosure consulting contracts.
Senate Bill S08143-A “[r]equires lender and mortgage loan servicers to give borrowers with high-cost home loans or higher-priced loans notice before certain actions are taken; establishes all home loans shall be subject to certain standards and limitations; creates the crime of residential mortgage fraud in the first, second, third, fourth and fifth degrees; relates to distressed property consulting contracts.” The bill seeks to address the mortgage foreclosure crisis in New York by: (1) providing additional protections and foreclosure prevention opportunities for homeowners at risk of losing their homes; (2) strengthening the banking laws to prevent similar crises from occurring in the future; (3) establishing standards for lenders and mortgage brokers to prevent borrowers from being placed into unaffordable home loans; (4) registering and regulating mortgage loan services to enhance loan servicing standards in the state; and (5) defining the crime of residential mortgage fraud and establishing strict criminal penalties to deter those who may engage in such activity. The bill is pending in the Senate. (See www.assembly.state.ny.us/leg/?bn=S08143.)
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Attorney Spotlight
William T. Repasky practices with the Litigation Department at Frost Brown Todd. He focuses on lending and commercial services; banking litigation and financial institutions.