Grants a right of action where registration fees of residential mortgages in default are imposed on the mortgagor; increases fee amount authorized to be imposed on mortgagees or their agents.
The new provisions not only increase the financial burden on mortgagees but also establish a right of action for individuals who are harmed by the improper passing of fees onto them. This means that individuals who believe they have been wronged in this way can bring forth legal action for recovery of damages in various jurisdictions related to the incident. The bill grants significant rights to homeowners, allowing them to seek redress in the counties where the actions occurred, where the defendants reside, or where the mortgage entity has its principal office.
A08244 amends the real property actions and proceedings law in New York, specifically addressing the registration fees imposed on mortgagees in default. The bill increases the cap on registration fees that can be charged by local laws from seventy-five dollars to three hundred dollars, while also prohibiting mortgagees and their agents from passing these fees onto mortgagors in default. This legislative change aims to provide better protections for homeowners, ensuring that they are not unfairly burdened by additional costs during financially challenging times.
Discussions surrounding A08244 may revolve around the implications of increasing the allowable registration fees. Supporters might argue that the increased fees are necessary for the proper administration of mortgage registries and to cover administrative costs, while opponents could raise concerns about placing additional financial burdens on already struggling homeowners. Furthermore, the right to initiate legal action introduces potential legal complications or lawsuits, which could be contentious among mortgagees who may view this as a threat to their operational costs and profit margins.