NY Modifies Foreclosure Provisions

Effective immediately, New York S.B. 7698 has amended foreclosure requirements for residential mortgages by adding clarification that any complaint served in a proceeding initiated on a residential mortgage covering a one to four family dwelling must contain the affirmative allegation that at the time the proceeding is commenced (for loans governed by section six-l or six-m of the banking law) the plaintiff has complied with section six-l or six-m of the banking law.

The bill further clarified that it shall be a defense to an action to foreclose a mortgage if a lender violates any provision of section six-l or six-m of the banking law or section thirteen hundred four of the Real Property Actions & Proceedings Law, for loans governed by these provisions.

In August 2021, WBK covered New York S.B. 5785, which made affirmative allegation provisions applicable to foreclosures of residential mortgages covering one to four family dwellings.