Bill > A02739

This bill amends the Real Property Law and Real Property Actions and Proceedings Law to provide clearer guidelines for mortgage payments and mortgage discharge. The bill clarifies situations where a mortgage may continue to be valid, such as during mortgage trading, refinancing, loan modifications, and property sales. Most importantly, it requires mortgagees (lenders) to accept and apply payments received at their specified location and in their specified manner, and prohibits them from returning or destroying payments made in reliance on a payoff statement. If a mortgagee fails to process a mortgage discharge (recording a satisfaction of mortgage) within specified timeframes, they can be held financially liable, with penalties escalating from $500 to $1,500 depending on the delay. The bill also specifies that these requirements do not apply to entities that make fewer than five mortgage loans per calendar year. The provisions aim to protect borrowers by ensuring that mortgage payments are properly handled and that mortgages are promptly discharged when fully paid, while providing clear guidelines for different types of mortgage transactions.

Business and Industry, Justice

https://www.nysenate.gov/legislation/bills/2025/A2739