Bill Text: NY A00092 | 2019-2020 | General Assembly | Amended


Bill Title: Requires a bank or financial institution selling or transferring a mortgage during a modification process to provide the borrower with a written list of all documents relating to such application for modification that were provided to the bank or financial institution to which such mortgage was sold or transferred; and relates to the obligations of subsequent mortgage servicer shall assume all duties and obligations related to any previously approved first lien loan modification or other foreclosure prevention alternative.

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Engrossed) 2019-06-20 - RETURNED TO ASSEMBLY [A00092 Detail]

Download: New_York-2019-A00092-Amended.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          92--A
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                       (Prefiled)
                                     January 9, 2019
                                       ___________
        Introduced by M. of A. PERRY, GALEF, MONTESANO -- read once and referred
          to  the  Committee  on  Banks  --  committee discharged, bill amended,
          ordered reprinted as amended and recommitted to said committee
        AN ACT to amend the banking law, in relation  to  requiring  a  bank  or
          financial  institution  selling  or  transferring  a mortgage during a
          modification process to provide the borrower with a  written  list  of
          all  documents relating to such application for modification that were
          provided to the bank or financial institution to which  such  mortgage
          was sold or transferred; and relating to the obligations of subsequent
          mortgage  servicer  shall assume all duties and obligations related to
          any previously approved first lien loan modification or other foreclo-
          sure prevention alternative
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  The banking law is amended by adding a new section 6-n to
     2  read as follows:
     3    § 6-n. Responsibility of  banks  for  mortgages  being  processed  for
     4  modification. 1. If a mortgage that is the subject of an application for
     5  a  modification  of the mortgage terms is sold or transferred during the
     6  modification process, the  bank  or  financial  institution  selling  or
     7  transferring  such  mortgage  shall  provide the borrower with a written
     8  list of all documents relating to such application for modification that
     9  were provided to the bank or financial institution to which  such  mort-
    10  gage was sold or transferred.
    11    2.  If  a  borrower has been approved in writing for a first lien loan
    12  modification or other modification to avoid foreclosure, and the servic-
    13  ing of such borrower's loan is transferred or sold to  another  mortgage
    14  servicer,  the  subsequent mortgage servicer shall assume all duties and
    15  obligations related to any previously approved first lien loan modifica-
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05248-05-9

        A. 92--A                            2
     1  tion or other foreclosure prevention alternative in accordance with  the
     2  provisions of this section.
     3    §  2.  This  act shall take effect on the ninetieth day after it shall
     4  have become a law and shall apply to all mortgages entered  into  on  or
     5  after such date.
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