Assembly Bill A722

2017-2018 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

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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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2017-A722 (ACTIVE) - Details

See Senate Version of this Bill:
S2223
Current Committee:
Assembly Banks
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
2019-2020: A92, S5017

2017-A722 (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.

2017-A722 (ACTIVE) - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    722
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              January 9, 2017
                                ___________
 
 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.
   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.
   § 2. This act shall take effect on the ninetieth day  after  it  shall
 have become a law.

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