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Bill

S 7933

Relates to registrations of residential mortgages in default

2025 Regular Session Introduced by Jeremy Cooney

Bill S 7933 empowers struggling homeowners to legally challenge registration fees imposed by lenders, easing their financial burden during mortgage defaults.

RETURNED TO SENATE
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Bill Summary · S 7933

Summary of Bill S 7933

Bill Number: S 7933
Title: Grants a right of action where registration fees are imposed on mortgagors in default
Status: Referred to Housing, Construction and Community Development
Introduced: May 14, 2025
Classification: Bill

Purpose and Intent

Bill S 7933 aims to provide legal recourse for mortgagors who are in default and are subjected to registration fees. The legislation seeks to address concerns regarding the financial burden these fees impose on individuals who are already facing difficulties in meeting their mortgage obligations. By granting a right of action, the bill intends to empower mortgagors to challenge the imposition of these fees in a legal context.

Key Provisions

  • Right of Action: The bill establishes a legal right for mortgagors in default to contest registration fees imposed by lenders or mortgage servicers.
  • Definition of Fees: The legislation specifies what constitutes a registration fee, ensuring clarity on the types of charges that can be challenged.
  • Legal Framework: It outlines the procedures for filing a claim, including any necessary documentation and timelines for action.
  • Potential Remedies: The bill may provide for remedies such as reimbursement of fees, damages, or other relief deemed appropriate by the court.

Who Would Be Affected

  • Mortgagors in Default: The primary beneficiaries of this bill are homeowners who are struggling to meet their mortgage payments and face additional financial strain from registration fees.
  • Lenders and Mortgage Servicers: Financial institutions that impose these fees will be directly impacted, as they may face legal challenges and potential financial liabilities if the bill is enacted.
  • Legal System: Courts may see an increase in cases related to the enforcement of this bill, requiring additional resources to handle the influx of claims.

Procedural Aspects

  • Current Status: As of May 14, 2025, the bill has been referred to the Housing, Construction and Community Development committee for further consideration.
  • Next Steps: The committee will review the bill, and it may be subject to amendments before being brought to the floor for a vote.

Related Legislation

  • A 8244: This bill serves as a companion to S 7933, indicating that similar provisions may be considered in the Assembly, potentially facilitating a coordinated legislative approach to the issue.

In summary, Bill S 7933 seeks to protect mortgagors in default from potentially exploitative registration fees by granting them the right to take legal action against such charges. The bill's progression through the legislative process will be closely monitored by stakeholders in the housing and financial sectors.

Compiled from official sources — confirm details with the bill’s official record.

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