New York A09447 mandates mortgagees to accept and apply payments as per the terms of a payoff letter.

New York A09447 amends the real property law and real property actions and proceedings law to require mortgagees to accept and apply payments as specified in a payoff letter. The mortgagee must apply the payment to the unpaid principal, interest, or any other amounts due under the mortgage. However, if there is a defect with the payment that prevents the mortgagee from identifying the mortgage with reasonable diligence, the mortgagee may refuse to accept the payment and return it to the remitter.

New York A09447 mandates mortgagees to accept and apply payments as per the terms of a payoff letter.

New York A09447 amends the real property law and real property actions and proceedings law to require mortgagees to accept and apply payments as specified in a payoff letter. The mortgagee must apply the payment to the unpaid principal, interest, or any other amounts due under the mortgage. However, if there is a defect with the payment that prevents the mortgagee from identifying the mortgage with reasonable diligence, the mortgagee may refuse to accept the payment and return it to the remitter.