New York Senate Bill S07933

New York 2025-2026 Regular Session

• Introduced: 5/14/25
• Refer: 5/14/25
• Refer: 1/7/26

Caption

Increases fee amount authorized to be imposed on mortgagees or their agents.

Impact

The increase in registration fees could have significant implications for mortgagees and borrowers. By prohibiting mortgagees from passing along these fees to mortgagors in default, the bill seeks to protect vulnerable homeowners from additional financial burdens during an already stressful period. This could be seen as a protective measure to cushion the effects of financial distress among homeowners, ensuring that the costs associated with mortgage registration remain at the lender's expense rather than being transferred to struggling borrowers.

Summary

Bill S07933, introduced by Senator Cooney, primarily aims to amend the real property actions and proceedings law concerning residential mortgages in default. The core change proposed is an increase in the registration fee amount that local laws, ordinances, or resolutions can impose on mortgagees or their agents. The bill specifically raises the maximum allowable registration fee from seventy-five dollars to three hundred dollars per year. This fee will be imposed on mortgagees who must now register residential mortgages that are in default status.

Contention

Despite its protective intentions, the bill may encounter opposition from mortgage lenders who could argue that the increased fees might lead to tighter lending conditions or reduced willingness to extend credit to at-risk borrowers. There may also be a debate around the effectiveness of such fees in achieving their intended protective outcomes. Critics may express concerns that while the bill attempts to provide safeguards for homeowners, it does not address the underlying issues of mortgage defaults and may result in unintended consequences in the housing market.