The state of New York has enacted new regulations for mortgage lenders and servicers that aim to hold the companies accountable for the maintenance of abandoned foreclosures, according to HousingWire’s Ben Lane.

Under the new laws, banks and servicers have a pre-foreclosure duty to maintain zombie homes, create an electronic registry of abandoned properties, and expedite foreclosure for vacant and abandoned properties to get them back on the market, among other requirements.

Lenders and mortgage servicers must complete an inspection of a property subject to delinquency within 90 days and must secure and maintain the property where the bank or servicer has a reasonable basis to believe that the property is vacant and abandoned, the NYDFS said.

Additionally, lenders and mortgage servicers will now be required to report all vacant and abandoned properties to the NYDSFS and submit quarterly reports detailing their efforts to secure and maintain the properties and any foreclosure proceedings.

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