New York City Council Header
File #: Res 1172-2019    Version: * Name: Failure to raise the defense of lack of standing in a mortgage foreclosure action. (A.5619/S.5160)
Type: Resolution Status: Committee
Committee: Committee on Housing and Buildings
On agenda: 11/26/2019
Enactment date: Law number:
Title: Resolution calling on the New York State Legislature to pass, and the Governor to sign, A.5619/S.5160, relation to the failure to raise the defense of lack of standing in a mortgage foreclosure action.
Sponsors: Robert E. Cornegy, Jr., Ben Kallos, Antonio Reynoso, Karen Koslowitz, Donovan J. Richards
Council Member Sponsors: 5
Attachments: 1. Res. No. 1172, 2. November 26, 2019 - Stated Meeting Agenda, 3. Hearing Transcript - Stated Meeting 11-26-19, 4. Minutes of the Stated Meeting - November 26, 2019

Res. No. 1172

 

Resolution calling on the New York State Legislature to pass, and the Governor to sign, A.5619/S.5160, relation to the failure to raise the defense of lack of standing in a mortgage foreclosure action.

 

By Council Members Cornegy, Kallos, Reynoso, Koslowitz and Richards

 

Whereas, New York State requires a plaintiff to own both the mortgage and note when it commences a foreclosure action on a borrower; and

Whereas, It has been reported that certain mortgage companies have taken actions that have been called into question due to the plaintiff’s lack of standing and the ambiguity on who owns the mortgage or note; and

Whereas, There have been circumstances where the borrower does not know who owns the loan; and

Whereas, Numerous court decisions in New York have held that if the borrower does not raise concerns over the lack of standing  upon the commencement of a foreclosure action then the borrower has waived their rights to take such action; and

Whereas, A.5619, introduced by Assembly Member Helene Weinstein  in the New York State Assembly, and companion bill S.5160, introduced by State Senator Brian Kavanagh  in the New York State Senate would provide that any defense based on a plaintiff's lack of standing in a foreclosure proceeding related to a home loan cannot be waived by a defendant's failure to raise these concerns upon the beginning of a foreclosure action; now, therefore, be it

Resolved, That the Council of the City of New York calls on the New York State Legislature to pass, and the Governor to sign, A.5619/S.5160, relation to the failure to raise the defense of lack of standing in a mortgage foreclosure action.

JLC

LS 12565

10/31/2019