S564A

The New York State Senate passed S564A, a bill to amend the Banking Law sponsored by Senator Kavanagh, on a roll call vote of 38-19. The measure, which takes effect 30 days after becoming law, received support from a majority of the chamber. Nineteen senators voted in opposition, including Senators Ashby, Borrello, Canzoneri-Fitzpatrick, Gallivan, Griffo, Helming, Lanza, Mattera, Murray, Oberacker, O'Mara, Ortt, Palumbo, Rhoads, Rolison, Stec, Tedisco, Weber and Weik. No floor debate was recorded on the measure prior to the vote.

The New York State Senate passed legislation creating a private right of action for homeowners injured by lenders and mortgage servicers who violate banking laws, with a 45-17 vote along largely party lines. Senate Print 564A, sponsored by Sen. Kavanagh, allows borrowers to sue for violations that are deemed "material" and cause demonstrable injury. The bill was amended from a prior version to require that violations be material rather than any noncompliance, addressing concerns raised during last year's debate. Sen. Kavanagh noted that similar private rights of action exist under federal law and in California and Ohio without generating excessive litigation. However, Sen. Borrello and other Republicans opposed the measure, arguing it creates fertile ground for frivolous class-action lawsuits based on technical violations like late notices. Borrello warned the bill will raise costs for lenders, reduce mortgage availability in New York, and ultimately harm homeownership opportunities—contradicting the stated consumer protection goal. The bill takes effect 30 days after becoming law. All 17 nay votes came from Republican senators.