Bill > S06363

This bill amends the Real Property Law and Real Property Actions and Proceedings Law to clarify mortgage payment and discharge requirements. The legislation addresses several key provisions: first, it defines situations where a mortgage continues to secure a valid debt, such as mortgage trading, refinancing, loan modifications, and property sales with existing mortgages. Second, it mandates that mortgagees must accept and promptly apply payments received at their specified location, and they cannot return or destroy payments made in reliance on a payoff statement. The bill also establishes penalties for mortgagees who fail to record a mortgage satisfaction within specified timeframes, with financial penalties escalating from $500 to $1,500 depending on the delay. Importantly, these requirements do not apply to small-scale lenders who make fewer than five mortgage loans per calendar year. The changes aim to provide more clarity and protection for borrowers by ensuring mortgagees handle payments and mortgage discharges consistently and transparently, and by creating financial incentives for timely processing of mortgage satisfactions.

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https://www.nysenate.gov/legislation/bills/2025/S6363