| New York Imposes Penalty Upon Servicers For Failing to Satisfy Mortgages |
| Tuesday, 11 October 2005 | |
|
On August 9, 2005 the New York Legislature enacted Senate Bill 48 into law. This bill is effective November 7, 2005. In summary, this legislation amends N.Y. Real Property Law, Section 275, subd. 1 and N.Y. Real Property Actions and Proceedings Law Section 1921, subd. 1 regarding discharge of a mortgage. The amendment imposes a penalty upon the mortgagee's failure to present a Certificate of Discharge of Mortgage for recording within the prescribed time period following the date the certificate was signed . The Certificate of Discharge is required whenever the full amount of the principal and interest on a mortgage is paid in full, and in the case of a credit line mortgage upon written request of the mortgagor. The amount of the fine increases based upon the number of days. 30 days after signature -- $500; 60 days after signature -- $1,000; 90 days after signature -- $1500. Please follow the links below to review Senate
Bill 48 and the applicable amended New York
statutes: http://www.safeguardproperties.com/pub/NY_CLS_RealP_sec275.doc http://www.safeguardproperties.com/pub/NY_CLS_RPAPL_sec1921.doc |
