A 9554: Enacts the "deed protection act" in relation to prohibiting a mortgage banker or mortgage loan servicer from commencing, maintaining, or proceeding with a foreclosure action on a mortgage loan where such mortgage banker or mortgage loan servicer knows or has reason to know that the mortgage securing such loan is dependent on a deed, conveyance, or other instrument affecting title to residential real property that was procured by fraud, forgery, or other unlawful means.
The bill proposes to amend the banking law to enact the "deed protection act". This act aims to protect homeowners from financial institutions that may take possession of their properties due to loan defaults. The key points of the bill are as follows: The bill defines "deed theft" as when a person takes the title to a home without the homeowner's knowledge or approval. Financial institutions are prohibited from taking possession of properties based on loan defaults if the loan was provided to a person who obtained the title by deed theft. To determine if deed theft occurred, financial institutions must conduct reasonable due diligence prior to providing the loan. The bill takes effect immediately, aiming to provide swift protection to homeowners from unfair financial practices.
- What is the current status of A 9554?
- As of July 15, 2026, A 9554 is recorded as "Passed first house": it has passed the chamber it started in and is now before the second chamber. The last recorded action, on May 29, 2026, was "REFERRED TO JUDICIARY".
- Did A 9554 pass?
- Not yet. A 9554 has passed its house of origin and is now before the second chamber, where it needs committee approval and a floor vote.
- Who wrote A 9554, and where is it now?
- A 9554 was authored by Asm. Demond Meeks with 12 coauthors. Its committee of record is Senate Judiciary.
| May. 29, 2026 | REFERRED TO JUDICIARY |
| May. 29, 2026 | delivered to senate |
| May. 29, 2026 | passed assembly |
| May. 28, 2026 | ordered to third reading rules cal.234 |
| May. 28, 2026 | rules report cal.234 |
STATE OF NEW YORK ________________________________________________________________________ 9554 IN ASSEMBLY January 14, 2026 ___________ Introduced by M. of A. MEEKS -- read once and referred to the Committee on Banks AN ACT to amend the banking law, in relation to enacting the "deed protection act" The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Short title. This act shall be known and may be cited as 2 the "deed protection act". 3 § 2. The banking law is amended by adding a new section 6-q to read as 4 follows: 5 § 6-q. Loans obtained by deed theft. No financial institution shall 6 take possession of any property based on the failure to repay any loan 7 provided by such financial institution for such property if such loan 8 was provided to a person who obtained the title to such property by deed 9 theft, and such financial institution failed to conduct reasonable due 10 diligence to determine whether such person obtained the title to such 11 property by deed theft prior to providing such loan to such person. 12 § 3. This act shall take effect immediately. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD14344-02-6