Bill Text: NY S05017 | 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: Partisan Bill (Democrat 1-0)

Status: (Passed) 2019-08-14 - signed chap.166 [S05017 Detail]

Download: New_York-2019-S05017-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          5017
                               2019-2020 Regular Sessions
                    IN SENATE
                                      April 3, 2019
                                       ___________
        Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
          printed to be committed 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.
    21    3. The provisions of this section shall apply  to  any  mortgage  loan
    22  which is three months or older at the time of the modification process.
    23    §  2.  This  act shall take effect on the ninetieth day after it shall
    24  have become a law.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05248-01-9