OCA Settles Rule 3408 Class Action in Kings County

Fanfair v. Knipel, litigation over unrepresented litigants in Kings County, has resulted in a settlement whereby the OCA has agreed to sweeping changes throughout New York State. Judges will deem all unrepresented homeowners appearing at the initial settlement conference to have made 3408 Motions and to hear and determine said motions to be appointed counsel.

Following the settlement, Albany has introduced legislation A8591 requiring the RPAPL 1304 pre-foreclosure notice to any mortgagor to include, “You may be entitled to assigned counsel if you are financially unable to obtain representation.”

While lenders recognize the importance of upholding fair foreclosure practices, these changes will pose challenges in terms of increased procedural complexity, potential delays, and higher costs associated with foreclosure actions.