Prevents fraudulent deed transfers

This New York state bill (S 3737) protects homeowners from being misled into signing away their property to mortgage servicers. It requires all property transfer deeds to include explicit, bold warning language stating "YOU ARE HEREBY MADE AWARE THAT BY SIGNING THIS DEED YOU ARE TRANSFERRING OWNERSHIP OF YOUR LAND OR HOME," accompanied by a notarized signature line from the homeowner. Failure to include this warning makes the transfer invalid and could result in a class E felony charge for the party involved. The bill also explicitly prohibits mortgage servicers from claiming ownership through deed transfers during mortgage modifications, and authorizes the state banking department to investigate suspected fraudulent transfers.