New York Amends Foreclosure Requirements for Residential Mortgages

New York Governor Andrew Cuomo recently signed into law Senate Bill 5785 (SB 5785), which makes the affirmative allegation provisions that are currently available only for high-cost loans and subprime home loans applicable to foreclosures of residential mortgages covering one to four family dwellings. 

In pertinent part, the SB 5785 amends the New York Real Property Actions and Proceedings Law (RPAPL) to require plaintiffs in a foreclosure action to plead ownership of the note and mortgage for all home loans and to allow all homeowners to avail themselves to certain statutory defenses to protect their homes, such as the right to receive a pre-foreclosure notice under RPAPL 1304.

The amendments made by SB 5785 become effective on January 1, 2022.