Assembly Bill A92A

Signed By Governor
2019-2020 Legislative Session

Relates to the obligations of banks and financial institutions during the sale of a mortgage subject to an application for modification

download bill text pdf

Sponsored By

Archive: Last Bill Status - Signed by Governor

  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

Do you support this bill?

Please enter your contact information

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.
Actions
Votes

Bill Amendments

co-Sponsors

2019-A92 - Details

See Senate Version of this Bill:
S5017
Law Section:
Banking Law
Laws Affected:
Add §6-n, Bank L
Versions Introduced in Other Legislative Sessions:
2011-2012: A7954
2013-2014: A4784, S5496
2015-2016: A6391, S2752
2017-2018: A722, S2223

2019-A92 - Summary

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.

2019-A92 - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    92
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (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:
 
   Section  1.  The banking law is amended by adding a new section 6-n to
 read as follows:
   § 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

co-Sponsors

2019-A92A (ACTIVE) - Details

See Senate Version of this Bill:
S5017
Law Section:
Banking Law
Laws Affected:
Add §6-n, Bank L
Versions Introduced in Other Legislative Sessions:
2011-2012: A7954
2013-2014: A4784, S5496
2015-2016: A6391, S2752
2017-2018: A722, S2223

2019-A92A (ACTIVE) - Summary

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.

2019-A92A (ACTIVE) - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   92--A
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (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:
 
   Section  1.  The banking law is amended by adding a new section 6-n to
 read as follows:
   § 6-N. RESPONSIBILITY OF  BANKS  FOR  MORTGAGES  BEING  PROCESSED  FOR
 MODIFICATION. 1. IF A MORTGAGE THAT IS THE SUBJECT OF AN APPLICATION FOR
 A  MODIFICATION  OF THE MORTGAGE TERMS IS SOLD OR TRANSFERRED DURING THE
 MODIFICATION PROCESS, THE  BANK  OR  FINANCIAL  INSTITUTION  SELLING  OR
 TRANSFERRING  SUCH  MORTGAGE  SHALL  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  MORT-
 GAGE WAS SOLD OR TRANSFERRED.
   2.  IF  A  BORROWER HAS BEEN APPROVED IN WRITING FOR A FIRST LIEN LOAN
 MODIFICATION OR OTHER MODIFICATION TO AVOID FORECLOSURE, AND THE SERVIC-
 ING OF SUCH BORROWER'S LOAN IS TRANSFERRED OR SOLD TO  ANOTHER  MORTGAGE
 SERVICER,  THE  SUBSEQUENT MORTGAGE SERVICER SHALL ASSUME ALL DUTIES AND
 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.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.