New YorkA 27392025-2026 Regular SessionHouseWALLET

Relates to discharge of a mortgage

Sponsored By: Catalina Cruz (Democratic)

Became Law

BANKSRULESJUDICIARY

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 2 benefits, 1 costs, 0 mixed.

Faster mortgage discharge and payoff protections

After you pay all amounts due, the lender must sign a satisfaction of mortgage. Within 30 days, it must file the discharge for recording or give it to you if you ask. If it is not filed, the lender owes you $500 after 30 days, $1,000 after 60, and $1,500 after 90. The lender must accept any payoff sent where and how it told you, cannot return or destroy it, and must apply it. The lender must give you the original note and mortgage within 45 days, but small lenders making fewer than five loans a year are not covered.

Mortgage liens can survive common deals

A mortgage is not treated as paid if it still secures a real debt and the lien remains enforceable. This can happen when a lender sells your loan on the secondary market or when a construction loan rolls into permanent financing. It also covers some refinances and loan changes, like assignment‑and‑consolidation refis, mods to avoid foreclosure, and sale‑refis where the buyer’s lender takes an assignment. The lien can stay on title, which may delay or add costs to a later sale or refinance.

Sworn proof required for mortgage assignments

To record most mortgage assignments, the file must include a sworn statement that the new holder is not a nominee and the mortgage still secures a real debt. The statement must be signed under oath by the borrower or another knowledgeable person. Assignments in the secondary mortgage market are exempt, but must say: "This assignment is not subject to the requirements of section two hundred seventy-five of the Real Property Law because it is an assignment within the secondary mortgage market."

Sponsors & Cosponsors

Sponsor

Catalina Cruz
Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 61 • No: 1

House vote • 6/9/2025

FLOOR Vote