Bill > A07546

This bill makes significant changes to New York state law regarding mortgage foreclosure proceedings, particularly for subordinate loans (secondary mortgages). The bill introduces new requirements for plaintiffs in foreclosure actions, including mandatory disclosures about loan ownership, payment history, and note possession. Specifically, plaintiffs must now provide detailed documentation about the loan's history, including a complete transaction schedule and custodial file for the original note. For subordinate loans purchased when already in default, plaintiffs must disclose the purchase date and amount paid. The bill also establishes a new statute of limitations for such actions, stating that starting January 1, 2027, actions on subordinate bonds or notes must be commenced within three years of purchase or within the existing legal time limit. Additionally, the bill restricts plaintiffs from demanding payment exceeding the amount paid for a defaulted subordinate loan plus a maximum interest rate, and ensures that defenses related to loan loan documentation and standing can be be raised even if not initially presented in a responsive pleading. These changes aim to provide more transparency and protection for defendants in mortgagelosure foreclosure Human:,

Justice

https://www.nysenate.gov/legislation/bills/2025/A7546