Senate Bill S5017

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

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Archive: Last Bill Status Via A92 - 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

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Bill Amendments

2019-S5017 - Details

Law Section:
Banking Law
Laws Affected:
Add §6-n, Bank L
Versions Introduced in Other Legislative Sessions:
2013-2014: S5496
2015-2016: S2752
2017-2018: S2223

2019-S5017 - 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-S5017 - Sponsor Memo

2019-S5017 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5017
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               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:
 
   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.
 
              

2019-S5017A (ACTIVE) - Details

Law Section:
Banking Law
Laws Affected:
Add §6-n, Bank L
Versions Introduced in Other Legislative Sessions:
2013-2014: S5496
2015-2016: S2752
2017-2018: S2223

2019-S5017A (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-S5017A (ACTIVE) - Sponsor Memo

2019-S5017A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5017--A
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               April 3, 2019
                                ___________
 
 Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
   printed to be  committed  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.
                                                            LBD05248-06-9
              

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