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NY DFS wants banks, mortgage servicers to submit reports on 'zombie properties'

The NewYork Department of Financial Services has put forward a proposal that wouldrequire banks and mortgage servicers to submit reports on vacant or abandonedproperties, which are also called "zombie properties."

Theproposal goes hand in hand with a law signed by New York Gov. Andrew Cuomo inJune that holds banks and mortgage servicers liable for the upkeep of zombieproperties. The new law goes into effect Dec. 20.

Theproposed regulation is subject to a 45-day notice and public comment periodafter Oct. 12.