Allows injured individuals to sue mortgagees and servicers for violations of mortgage servicing rules.

This bill amends the banking law to allow any person injured by violations of mortgage servicing rules to bring an action in their own name, assert a counterclaim, or bring a third party claim if an action is commenced by the mortgagee. It authorizes damages, including statutory damages of $1,000 per violation, treble actual damages, and recovery of costs and expenses. The mortgagee and servicer are jointly and severally liable for any recoveries. Compliance with the rules is a condition precedent to foreclosure actions, and failure to comply is a defense to such actions.

Allows injured individuals to sue mortgagees and servicers for violations of mortgage servicing rules.

This bill amends the banking law to allow any person injured by violations of mortgage servicing rules to bring an action in their own name, assert a counterclaim, or bring a third party claim if an action is commenced by the mortgagee. It authorizes damages, including statutory damages of $1,000 per violation, treble actual damages, and recovery of costs and expenses. The mortgagee and servicer are jointly and severally liable for any recoveries. Compliance with the rules is a condition precedent to foreclosure actions, and failure to comply is a defense to such actions.