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Assembly Bill A6391

2015-2016 Legislative Session

Requires banks and financial institutions entering into negotiations to modify a mortgage on real property to be responsible for the continuation of the modification

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Archive: Last Bill Status - In Assembly Committee

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2015-A6391 (ACTIVE) - Details

See Senate Version of this Bill:
S2752
Current Committee:
Assembly Banks
Law Section:
Banking Law
Laws Affected:
Add ยง6-n, Bank L
Versions Introduced in Other Legislative Sessions:
2011-2012: A7954
2013-2014: A4784, S5496
2017-2018: A722, S2223
2019-2020: A92, S5017

2015-A6391 (ACTIVE) - Summary

Requires 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 regardless of whether the mortgage is sold.

2015-A6391 (ACTIVE) - Bill Text download pdf 

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6391

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                             March 23, 2015
                               ___________

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:

  Section  1.  The banking law is amended by adding a new section 6-n to
read as follows:
  S 6-N. RESPONSIBILITY OF  BANKS  FOR  MORTGAGES  BEING  PROCESSED  FOR
MODIFICATION.  1. NOTWITHSTANDING ANY PROVISIONS OF LAW TO THE CONTRARY,
ANY BANK OR FINANCIAL INSTITUTION ENTERING INTO NEGOTIATIONS,  INCLUDING
BUT  NOT  LIMITED  TO PROCESSING AN APPLICATION, TO MODIFY A MORTGAGE ON
REAL PROPERTY LOCATED IN THIS STATE SHALL BE RESPONSIBLE FOR THE CONTIN-
UATION OF THE MODIFICATION PROCESS UNTIL ITS  COMPLETION  REGARDLESS  OF
WHETHER  THE  MORTGAGE  IS  SOLD, TRANSFERRED OR BUNDLED INTO A SECURITY
PACKAGE FOR PROVISION TO A THIRD PARTY DURING THE MODIFICATION PROCESS.
  2. IF A MORTGAGE THAT IS THE SUBJECT OF  NEGOTIATIONS  OR  APPLICATION
FOR A MODIFICATION OF THE MORTGAGE TERMS IS SOLD, TRANSFERRED OR BUNDLED
INTO  A  SECURITY  PACKAGE  FOR  PROVISION  TO  A THIRD PARTY DURING THE
MODIFICATION PROCESS, SUCH MORTGAGE SHALL  BE  AUTOMATICALLY  DEEMED  TO
HAVE BEEN MODIFIED AS SPECIFIED IN THE MORTGAGE MODIFICATION APPLICATION
AND  THE  PURCHASER  OF  SUCH MORTGAGE MUST ACCEPT ANY DECISION RENDERED
WITH REGARD TO SUCH MODIFICATION AND  BE  BOUND  BY  THE  TERMS  OF  THE
MODIFICATION  AGREEMENT,  INCLUDING  THE  INTEREST RATE IN EFFECT AT THE
TIME OF PROCESSING. THE PURCHASER SHALL ASSUME ALL RIGHTS AND  RESPONSI-
BILITIES NECESSARY TO COMPLY WITH THE MODIFIED LOAN.
  3.  THE  PROVISIONS  OF  THIS SECTION SHALL APPLY TO ANY MORTGAGE LOAN
WHICH IS THREE MONTHS OR OLDER AT THE TIME OF THE MODIFICATION PROCESS.
  S 2. This act shall take effect on the ninetieth day  after  it  shall
have become a law.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

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