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

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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: (Passed) 2019-08-14 - signed chap.166 [A00092 Detail]

Download: New_York-2019-A00092-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                           92
                               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
        AN  ACT  to  amend  the  banking law, in relation to requiring banks and
          financial institutions entering into negotiations to modify a mortgage
          on real property located in this  state  to  be  responsible  for  the
          continuation  of the modification process until its completion regard-
          less of whether the mortgage is sold
          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. Notwithstanding any provisions of law to the contrary,
     5  any bank or financial institution entering into negotiations,  including
     6  but  not  limited  to processing an application, to modify a mortgage on
     7  real property located in this state shall be responsible for the contin-
     8  uation of the modification process until its  completion  regardless  of
     9  whether  the  mortgage  is  sold, transferred or bundled into a security
    10  package for provision to a third party during the modification process.
    11    2. If a mortgage that is the subject of  negotiations  or  application
    12  for a modification of the mortgage terms is sold, transferred or bundled
    13  into  a  security  package  for  provision  to  a third party during the
    14  modification process, such mortgage shall  be  automatically  deemed  to
    15  have been modified as specified in the mortgage modification application
    16  and  the  purchaser  of  such mortgage must accept any decision rendered
    17  with regard to such modification and  be  bound  by  the  terms  of  the
    18  modification  agreement,  including  the  interest rate in effect at the
    19  time of processing. The purchaser shall assume all rights and  responsi-
    20  bilities necessary to comply with the modified loan.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05248-01-9
        A. 92                               2
     1    3.  The  provisions  of  this section shall apply to any mortgage loan
     2  which is three months or older at the time of the modification process.
     3    §  2.  This  act shall take effect on the ninetieth day after it shall
     4  have become a law.