BILL NUMBER: S7933
SPONSOR: COONEY
 
TITLE OF BILL:
An act to amend the real property actions and proceedings law, in
relation to a right of action where registration fees are imposed on
mortgagees in default
 
PURPOSE:
The purpose of this bill is to update the law related to registrations
of residential mortgages in default.
 
SUMMARY OF PROVISIONS:
Section 1 increases the fee that can be charged for mortgage in default
registries from $75 to $300 annually, which is prohibited from being
passed along to the mortgagor in default. Section 1 also established a
new private right of action for any person that has been damaged because
of the mortgage and/or its agents passing down fees to the mortgagor in
default.
Section 2 provides for an immediate effective date.
 
JUSTIFICATION:
Mortgage in default registries can be a useful tool for municipalities
to know which properties may be at risk of foreclosure. This bill is
needed to ensure these registries can be sustained with and ensure mort-
gagors are adequately protected from being assessed fees for such regis-
tries.
 
LEGISLATIVE HISTORY:
New Bill.
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect immediately.