Bill > A07386

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 or accepting any deed conveyance 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 borrowers to mortgage servicers as part of a mortgage modification are considered invalid, and the Department of Financial Services is granted the authority to investigate any deed transfers that violate this provision. 3) The Department of Financial Services is empowered to prescribe methods and standards for receiving and investigating claims of fraudulent deed transfers, including those that violate the new restrictions.

Justice

https://www.nysenate.gov/legislation/bills/2023/A7386