Bill Text: NY A07954 | 2011-2012 | General Assembly | Introduced

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Bill Title: 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.

Spectrum: Slight Partisan Bill (Democrat 4-2)

Status: (Introduced - Dead) 2012-01-04 - referred to banks [A07954 Detail]

Download: New_York-2011-A07954-Introduced.html

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                           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:
    1    Section  1.  The banking law is amended by adding a new section 6-n to
    2  read as follows:
    3    S 6-N. RESPONSIBILITY OF  BANKS  FOR  MORTGAGES  BEING  PROCESSED  FOR
    4  MODIFICATION.  1. NOTWITHSTANDING ANY PROVISIONS OF LAW TO THE CONTRARY,
    5  ANY BANK OR FINANCIAL INSTITUTION ENTERING INTO NEGOTIATIONS,  INCLUDING
    6  BUT  NOT  LIMITED  TO PROCESSING AN APPLICATION, TO MODIFY A MORTGAGE ON
    7  REAL PROPERTY LOCATED IN THIS STATE SHALL BE RESPONSIBLE FOR THE CONTIN-
    8  UATION OF THE MODIFICATION PROCESS UNTIL ITS  COMPLETION  REGARDLESS  OF
    9  WHETHER  THE  MORTGAGE  IS  SOLD, TRANSFERRED OR BUNDLED INTO A SECURITY
   10  PACKAGE FOR PROVISION TO A THIRD PARTY DURING THE MODIFICATION PROCESS.
   11    2. IF A MORTGAGE THAT IS THE SUBJECT OF  NEGOTIATIONS  OR  APPLICATION
   12  FOR A MODIFICATION OF THE MORTGAGE TERMS IS SOLD, TRANSFERRED OR BUNDLED
   13  INTO  A  SECURITY  PACKAGE  FOR  PROVISION  TO  A THIRD PARTY DURING THE
   14  MODIFICATION PROCESS, SUCH MORTGAGE SHALL  BE  AUTOMATICALLY  DEEMED  TO
   15  HAVE BEEN MODIFIED AS SPECIFIED IN THE MORTGAGE MODIFICATION APPLICATION
   16  AND  THE  PURCHASER  OF  SUCH MORTGAGE MUST ACCEPT ANY DECISION RENDERED
   17  WITH REGARD TO SUCH MODIFICATION AND  BE  BOUND  BY  THE  TERMS  OF  THE
   18  MODIFICATION  AGREEMENT,  INCLUDING  THE  INTEREST RATE IN EFFECT AT THE
   19  TIME OF PROCESSING. THE PURCHASER SHALL ASSUME ALL RIGHTS AND  RESPONSI-
   20  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
       A. 7954                             2
    1    3.  THE  PROVISIONS  OF  THIS SECTION SHALL APPLY TO ANY MORTGAGE LOAN
    2  WHICH IS THREE MONTHS OR OLDER AT THE TIME OF THE MODIFICATION PROCESS.
    3    S  2.  This  act shall take effect on the ninetieth day after it shall
    4  have become a law.