Bill > A10147

This bill, known as the "deed theft: bank and lender accountability act," amends New York's insurance law to prohibit title insurance corporations from paying claims to lenders when the underlying property transfer, or conveyance, was false or fraudulent. This means that if a title insurance company discovers that the transaction used to transfer ownership of a property was based on deception or illegality, they cannot then pay out a claim to a lender (such as a mortgage lender) who might have been involved in that fraudulent transaction. The bill aims to prevent financial institutions from benefiting from or being compensated for transactions that were not legitimate, thereby addressing issues like deed theft where someone's property is fraudulently transferred.

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https://www.nysenate.gov/legislation/bills/2025/A10147