NYS Seal

ASSEMBLY STANDING COMMITTEE ON JUDICIARY
ASSEMBLY STANDING COMMITTEE ON HOUSING
ASSEMBLY STANDING COMMITTEE ON BANKS

NOTICE OF PUBLIC HEARING

SUBJECT:
Impact of the mortgage foreclosure process and crisis engendered by current foreclosure litigation practices on homeowners and upon New York and impact of funding in the SFY 2010-11 budget on foreclosure prevention and civil legal services on behalf of homeowners.

PURPOSE:
To examine the statutory and regulatory framework for mortgage foreclosures; to review and assess the impact of funds appropriated to aid homeowners facing foreclosure and the effects of state programs related to foreclosure assistance on homeowners and on tenants in apartment buildings subject to foreclosure in the SFY 2010-11 budget.

Wednesday, November 17, 2010
10:00 a.m.
Assembly Hearing Room
250 Broadway, Room 1923
19th Floor
New York, New York

ORAL TESTIMONY WILL BE BY INVITATION ONLY

In response to the foreclosure crisis that continues to buffet our economy, New York has revised its laws and established programs that make the foreclosure process fairer to homeowners and tenants. The Legislature has appropriated funds to assist beleaguered homeowners in obtaining counseling and legal representation, created mandatory foreclosure conferences to foster equitable settlements, and sought to prevent foreclosed properties from becoming burdens on our fiscally strapped localities.

Recent events, including the decisions of several trial courts, have revealed serious shortcomings in the legal papers submitted to the courts by plaintiffs and, thus, cast doubts on the integrity of the judicial foreclosure process. Among other issues, national headlines have highlighted how the failure of the public recording system to accurately reflect the ownership of mortgages and mortgage notes has impaired the ability of homeowners to respond to foreclosures and courts to determine the rights of both lenders and homeowners. This hearing will examine what, if any, further changes to New York law should be implemented to restore the integrity of these public records. Legislation that addresses some of these concerns includes A.8684B (2010) upon which the committees would welcome comment.

The hearing also will examine ways in which to better enable lenders, homeowners and courts to disentangle the web of mortgage promissory note assignments, the complexity and opaqueness of which has contributed, in part, to the state and national foreclosure crisis. Testimony should address ways of ensuring accurate court submissions by those parties who have legal standing to foreclose a mortgage including A.11465