Assembly Bill A7954

2011-2012 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

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Assembly Committee

  • 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

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2011-A7954 (ACTIVE) - Details

Current Committee:
Assembly Banks
Law Section:
Banking Law
Laws Affected:
Add ยง6-n, Bank L
Versions Introduced in Other Legislative Sessions:
2013-2014: A4784
2015-2016: A6391
2017-2018: A722
2019-2020: A92

2011-A7954 (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.

2011-A7954 (ACTIVE) - Bill Text download pdf 

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

                                  7954

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                              May 25, 2011
                               ___________

Introduced  by  M.  of  A. PERRY, MONTESANO, P. RIVERA, GALEF, REILLY --
  Multi-Sponsored by -- M.  of A. MURRAY -- 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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11068-01-1

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