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On December 12, 2025, New York enacted Assembly Bill A2739 and its Senate companion, which govern how mortgage payoff funds must be accepted and applied when payment is tendered in reliance on a payoff statement. The law amends Real Property Law Section 275 and Real Property Actions and Proceedings Law Section 1921 and provides that when payment is received at the location and in the manner specified by the mortgagee, the mortgagee must accept the payment and apply it to unpaid principal, interest, or other amounts due under the mortgage.
By tying acceptance obligations to the mortgagee’s disclosed payoff directions, the law attempts to establish a clearer compliance standard.
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