NYDFS RELEASES PROPOSED RULE FOR
VACANT PROPERTY REGISTRY
S8159 Part Q foreclosure reform legislation makes many changes to the foreclosure process. One of the requirements of the legislation is for the New York State Department of Financial Services to establish a Vacant and Abandoned Property Registry.
Lenders/mortgage servicers are required to report vacant and abandoned properties to the Department of Financial Services and submit quarterly reports detailing their efforts to secure and maintain the properties and any foreclosure proceedings. If the Department of Financial Services determines that a property that has been deemed vacant and abandoned is not being properly maintained by a lender/mortgage servicer, the Superintendent will exercise her authority to hold the bank or mortgage servicer accountable. Violations are subject to a civil penalty of $500 per day, per property.
Under the new law, reporting by both deposit and non-depository lenders/servicers will be mandatory. The law also requires the creation of a zombie hotline to allow New Yorkers to report vacant or abandoned properties.
The proposed Rules regarding the Registry are subject to a 45-day notice and public comment period following the October 12, 2016 publication in the New York State Register, before its final issuance. Rules for other sections of the new law will be published by the Office of Court Administration, which regulates the foreclosure process.
NY STATE LEGISLATURE
PASSES BILL TO ADDRESS
VACANT AND ABANDONED PROPERTIES
In the early morning hours Saturday, June 18, 2016, the NY State Legislature passed S8159, a bill that would require servicers to maintain vacant and abandoned property that they do not own, for the many years that a foreclosure takes in the state of New York. Federally and state chartered depositories are exempt from the requirement if they either originate, own, service, or maintain their mortgages, or a portion thereof; and have less than 3/10 of 1% of the total loans in the state which they either originate, own, service or maintain.
Lenders/servicers will be required to inspect properties within 90 days of delinquency to determine delinquency, and continue to inspect every 25-30 days. Within 7 days of determining the property is vacant, the lender/servicer must post a notice on the property stating that they are maintaining the property, and provide a phone number to call. If there is no response from the borrower within 7 calendar days of posting, the lender servicer must secure and begin maintaining the property. The lender/servicer may not remove any of the borrower’s personal property. There is a $500 per day fine for non-compliance.
The legislation also includes: a requirement to notify delinquent borrowers that they may stay in the property throughout the foreclosure process; a requirement for the NYSDFS to publish a Consumer Bill of Rights; a requirement for a lender/servicer who acquires a property through a judgment of foreclosure to place a property back on the market for sale within 180 days of the deed of sale or within 90 days of renovation of the property, whichever occurs first; extension of ” workout” options in the mandatory settlement conference; an expedited foreclosure process for vacant and abandoned property, if the borrowers fails to appear at the mandatory settlement conference; and technical changes to the STAR Personal Income Tax Credit.
For full text of the bill, click HERE.
NYMBA HOLDS ANOTHER
The NYMBA held another successful convention in Albany on June 9th and 10th. Topics were TRID, Cyber Security, HMDA, Millennials, Enforcement, Legislation, Success Strategies, NYSDFI, and QC. Here’s the emails we received after the conference:
“You guys did a fantastic job planning the conference! The sessions were all very interesting, informative and relevant to our day to day operations in this environment.”
“We can’t thank you enough for your efforts, and bravo to you on another great convention last week in Albany!!”
“Thank you for putting on a great conference. All the speakers were top notch.”
“I really enjoyed each speaker. The Conference was excellent!! Love having this information. You made me look like a super star at our company meeting this morning. Thank you!! “
“I want to thank you for all of the work you put into the convention. It was informative with a wide range of topics and speakers. I look forward to attending next year.”
“I had a wonderful time & the program was very worthwhile. Thanks for putting on a great show.”
“Thanks for another great conference last week in Albany. I enjoyed the speakers and getting to know some folks for the first time “
NYS 2016 Budget Reinstates the
Refund of the
Special Additional Mortgage Recording Tax
On Friday evening, April 1, 2016 the New York State Budget was passed. The budget included the following language:
“Section 1. Paragraph (b) of subdivision 9 of section 210-B of the tax law, as added by section 17 of part A of chapter 59 of the laws of 2014, is amended to read as follows:
(b) Carryover or refund. In no event shall the credit herein provided for be allowed in an amount which will reduce the tax payable to less than the fixed dollar minimum amount prescribed in paragraph (d) of subdivision one of section two hundred ten of this article. If, however, the amount of credit allowable under this subdivision for any taxable year, including any credit carried over from a prior taxable year, reduces the tax to such amount or if the taxpayer otherwise pays tax based on the fixed dollar minimum amount, any amount of credit not deductible in such taxable year may be carried over to the following year or years and may be deducted from the taxpayer’s tax for such year or years. In lieu of carrying over to the following year or years, the unused portion of credits attributable to the special additional mortgage recording tax paid by the taxpayer as mortgagee with respect to mortgages of real property principally improved or to be improved by one or more structures containing in the aggregate not more than six residential dwelling units, each dwelling unit having its own separate cooking facilities, such taxpayer may elect to treat such unused portion as an overpayment of tax to be credited or refunded in accordance with the provisions of section ten hundred eighty-six of this chapter, except that no interest shall be paid on such overpayment.
- 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on the same date and in the same manner as part A of chapter 59 of the laws of 2014, took effect.”
As previously reported, upon learning that the 2014 budget eliminated the refund, effective with the 2015 tax year, the NYMBA contacted the New York State Assembly and Senate; explaining the impact on non-depository lenders, and requesting a correction in the 2016 budget, retroactive back to January 1, 2015. In addition, we asked you to contact your legislators. As a result, there was bipartisan support in the NYS legislature for the correction, and it was added to both the Assembly and Senate One House bills, and inserted into the final bill, passed by both the Assembly and Senate. Our sincere thanks go out to all of you that assisted in this effort. Loss of the refund would have had a devastating impact on mortgage bankers doing business in the state of New York when filing their 2015 tax returns.
June, 2016 Convention Sponsors