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. LBD05248-05-9A. 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.