Bill > S02948

This bill amends the Real Property Law and the Banking Law to prevent fraudulent deed transfers and protect homeowners from being misled into transferring their homes to mortgage servicers. The key provisions are: 1) Recording officers are prohibited from recording any deed transfer unless it contains explicit and bold language warning the transferor that they are transferring ownership of their land or home, and the transferor must sign a notarized acknowledgement. Failure to comply is a Class E felony. 2) Deed transfers from a borrower to a mortgage servicer as part of a mortgage modification are not considered valid. The Banking Department is given authority to investigate any fraudulent deed transfers. 3) The Banking Department is authorized to prescribe methods and standards for receiving and investigating claims of fraudulent deed transfers, including those that violate the prohibition on deed transfers to mortgage servicers during modifications.

Housing and Urban Affairs, Justice

https://www.nysenate.gov/legislation/bills/2023/S2948