Relates to mortgage loan servicers

Latest action Mar 25, 2026

Provides that any person who has been injured by reason of any violation of any such rules, regulations or policies as the superintendent may promulgate may bring an action in such person's own name; assert a counterclaim; or, if an action is commenced by the mortgagee or anyone acting on its behalf, bring a third party claim, against either the mortgagee and/or the mortgage servicer to enjoin any violations thereof; authorizes damages; makes related provisions.

Not chosen yet

Where it stands

Passed one of the two chambers; it still needs the other.

Introduced
In committee
Up for a vote
Passed one chamber
Passed
Enacted

New York State Senate

Same as A3348, the matching bill in the Assembly.

Amends the Banking Law.

Committee

Banks · New York State Assembly

Also referred to Banks · New York State Senate.

Purpose, from the sponsor's memo

This bill will add new subdivisions to section 595-b of the banking law in order to provide a private right of action to homeowners who are injured by a mortgage servicer or mortgagee's failure to comply with foreclosure rules and regulations. This bill will make the failure to comply a defense in a foreclosure proceeding, and compliance a condition before which a foreclosure action may be commenced.

Filed with the bill. Read it on nysenate.gov (opens in a new tab)

Recorded votes

Vote: Floor vote
NY SenateMar 25, 2026Result: passed
(38) (21) (0) (4)
Vote: Committee vote · Banks
Senate BanksFeb 24, 2026Result: passed
(5) (2) (0) (0)
Vote: Floor vote
NY SenateMar 24, 2025Result: passed
(37) (22) (0) (4)
Vote: Committee vote · Banks
Senate BanksFeb 25, 2025Result: passed
(5) (2) (0) (0)

Cosponsors

Al Taylor, Cordell Cleare and 18 more on Agora

Democratic19
Republican1

See the full list on nysenate.gov

The sponsor's argument

Why Brian Kavanagh says this is needed

New York has been in a leader in establishing mortgage servicing regu- lations, codified in NYRR Part 419, promulgated pursuant to Article 12-D of the Banking law. They include strict regulations around the loss mitigation process and a duty of good faith and fair dealing. However, in contrast to equivalent provisions under federal law (RESPA), these provisions do not support a private right of action. Even before the current financial and public health crisis brought on by COVID-19, struggling homeowners would have been helped immeasurably by a private right of action, rather than relying on the Department of Financial Services to enforce these provisions against the mortgage originators and servicers it regulates. Now with moratoriums ending and forbearance agreements terminating, the current crisis has brought with it a renewed attention to the need for loss mitigation for struggling homeowners. The private right of action under the servicing rules will assume even greater importance as a tool for COVID-19-impacted homeowners, among others, engaging in loss mitigation with mortgage servicers. The current expansive loss mitigation provisions will be increasingly important but will be the source of frustration if they exist only on paper with no redress for consumers harmed by their violation.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.

Full history

Mar 25, 2026
Sent to the executive
DELIVERED TO ASSEMBLY
NY Senate
Mar 25, 2026
Passed a chamber
PASSED SENATE
NY Senate
Mar 25, 2026
Referred to committee
REFERRED TO BANKS
NY Assembly
Mar 5, 2026
Advanced to Third Reading
ADVANCED TO THIRD READING
NY Senate
Mar 4, 2026
2ND Report CAL.
2ND REPORT CAL.
NY Senate

Show full history (12 earlier events)

Feb 26, 2026
1ST Report CAL.438
1ST REPORT CAL.438
NY Senate
Jan 7, 2026
Died in Assembly
DIED IN ASSEMBLY
NY Assembly
Jan 7, 2026
Referred to committee
REFERRED TO BANKS
NY Assembly
Jan 7, 2026
Referred to committee
REFERRED TO BANKS
NY Senate
Mar 24, 2025
Sent to the executive
DELIVERED TO ASSEMBLY
NY Senate
Mar 24, 2025
Passed a chamber
PASSED SENATE
NY Senate
Mar 24, 2025
Referred to committee
REFERRED TO BANKS
NY Assembly
Mar 3, 2025
Advanced to Third Reading
ADVANCED TO THIRD READING
NY Senate
Feb 26, 2025
2ND Report CAL.
2ND REPORT CAL.
NY Senate
Feb 25, 2025
1ST Report CAL.387
1ST REPORT CAL.387
NY Senate
Jan 27, 2025
Referred to committee
REFERRED TO BANKS
NY Assembly
Jan 8, 2025
Referred to committee
REFERRED TO BANKS
NY Senate

About this record

Summary: The summary comes from NY Open Legislation, the New York State Senate's public record. For more, see How we handle summaries.
Cosponsors: The list shows the cosponsors who are on Agora, A to Z. The official record may list more.
Party colors: Parties are shown in the same neutral colors.
Source: From NY Open Legislation, the NY Senate and Assembly, and official rosters. This record was last updated Nov 1, 2026. About our data

Read the record

Read on NY Senate (opens in a new tab) The official record on nysenate.gov.

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