Directs DFS to set standards for prosecuting residential real property violations and requires deference to municipalities when both can prosecute.

The bill amends the real property actions and proceedings law to establish standards for the Department of Financial Services (DFS) when deciding whether to prosecute violations related to residential real property by mortgage lenders and similar entities. It mandates that DFS must not prosecute a violation if a municipality is also authorized to do so, unless the municipality confirms it will not prosecute. If DFS prosecutes and wins, the proceeds from any civil penalties go to DFS. This law aims to streamline prosecution and ensure coordination between DFS and municipalities.

Directs DFS to set standards for prosecuting residential real property violations and requires deference to municipalities when both can prosecute.

The bill amends the real property actions and proceedings law to establish standards for the Department of Financial Services (DFS) when deciding whether to prosecute violations related to residential real property by mortgage lenders and similar entities. It mandates that DFS must not prosecute a violation if a municipality is also authorized to do so, unless the municipality confirms it will not prosecute. If DFS prosecutes and wins, the proceeds from any civil penalties go to DFS. This law aims to streamline prosecution and ensure coordination between DFS and municipalities.