Bill Text: NY A07513 | 2019-2020 | General Assembly | Amended

New York Assembly Bill 7513 (Prior Session Legislation)

Bill Title: Relates to modifying delinquent mortgage loans and single point of contact.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2020-07-23 - ordered to third reading rules cal.305 [A07513 Detail]

Download: New_York-2019-A07513-Amended.html


                STATE OF NEW YORK
        ________________________________________________________________________

                                         7513--A

                               2019-2020 Regular Sessions

                   IN ASSEMBLY

                                       May 8, 2019
                                       ___________

        Introduced  by M. of A. PERRY -- read once and referred to the Committee
          on Banks -- recommitted to the Committee on Banks in  accordance  with
          Assembly Rule 3, sec. 2 -- committee discharged, bill amended, ordered
          reprinted as amended and recommitted to said committee

        AN  ACT  to  amend  the banking law, in relation to modifying delinquent
          home loans and single point of contact

          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-o to
     2  read as follows:
     3    § 6-o. Single point of contact for modifying delinquent home loans. 1.
     4  A lender shall provide to a borrower who is sixty or  more  days  delin-
     5  quent on his or her home loan with such lender and who chooses to pursue
     6  a  loan  modification  or  other  foreclosure  prevention alternative, a
     7  single point of contact for the borrower to reach the  lender  regarding
     8  pursuing a loan modification. The borrower shall make his or her request
     9  for  such  contact information in writing or by electronic communication
    10  to his or her lender and such lender shall provide the contact  informa-
    11  tion  required herein within ten business days of receiving such borrow-
    12  er's request. If at any time the contact  information  provided  to  the
    13  borrower changes, a notification of such change shall be provided by the
    14  lender  to  the  borrower  within five business days of such change. The
    15  duties imposed on a lender by this section may also be  performed  by  a
    16  mortgage servicer acting on behalf of such lender.
    17    2. The single point of contact required by this act shall be responsi-
    18  ble for the following:
    19    (a)  communicating information regarding options the borrower may have
    20  for modifying his or her delinquent home loan;
    21    (b) assisting the borrower with identifying  documents  necessary  for
    22  pursuing a loan modification; and

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05333-04-0

        A. 7513--A                          2

     1    (c)  providing  accurate information regarding the status of a borrow-
     2  er's loan modification application should such borrower choose to  apply
     3  for a modification.
     4    3.  The  single point of contact required by this section shall remain
     5  assigned to the borrower's account until such time as the lender  deter-
     6  mines  that  all  loss modification options have been exhausted or until
     7  the borrower's account becomes current.
     8    4. For the purposes of this section, "home loan" shall have  the  same
     9  meaning  as defined in paragraph (e) of subdivision one of section six-l
    10  of this article.
    11    § 2. This act shall take effect on the sixtieth  day  after  it  shall
    12  have become a law and shall apply to home loans entered into on or after
    13  such effective date.