Bill Text: NY S08761 | 2019-2020 | General Assembly | Introduced

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Bill Title: Relates to modifying delinquent mortgage loans and single point of contact.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed - Dead) 2020-07-23 - ordered to third reading rules cal.305 [S08761 Detail]

Download: New_York-2019-S08761-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          8761

                    IN SENATE

                                      July 14, 2020
                                       ___________

        Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
          printed to be committed to the Committee on Rules

        AN ACT to amend the banking law, in  relation  to  modifying  delinquent
          home loans and single point of contact

          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-o  to
     2  read as follows:
     3    § 6-o. Single point of contact for modifying delinquent home loans. 1.
     4  A  lender  shall  provide to a borrower who is sixty or more days delin-
     5  quent on his or her home loan with such lender and who chooses to pursue
     6  a loan modification  or  other  foreclosure  prevention  alternative,  a
     7  single  point  of contact for the borrower to reach the lender regarding
     8  pursuing a loan modification. The borrower shall make his or her request
     9  for such contact information in writing or by  electronic  communication
    10  to  his or her lender and such lender shall provide the contact informa-
    11  tion required herein within ten business days of receiving such  borrow-
    12  er's  request.  If  at  any time the contact information provided to the
    13  borrower changes, a notification of such change shall be provided by the
    14  lender to the borrower within five business days  of  such  change.  The
    15  duties  imposed  on  a lender by this section may also be performed by a
    16  mortgage servicer acting on behalf of such lender.
    17    2. The single point of contact required by this act shall be responsi-
    18  ble for the following:
    19    (a) communicating information regarding options the borrower may  have
    20  for modifying his or her delinquent home loan;
    21    (b)  assisting  the  borrower with identifying documents necessary for
    22  pursuing a loan modification; and
    23    (c) providing accurate information regarding the status of  a  borrow-
    24  er's  loan modification application should such borrower choose to apply
    25  for a modification.
    26    3. The single point of contact required by this section  shall  remain
    27  assigned  to the borrower's account until such time as the lender deter-

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05333-06-0
        S. 8761                             2

     1  mines that all loss modification options have been  exhausted  or  until
     2  the borrower's account becomes current.
     3    4.  For  the purposes of this section, "home loan" shall have the same
     4  meaning as defined in paragraph (e) of subdivision one of section  six-l
     5  of this article.
     6    §  2.  This  act  shall take effect on the sixtieth day after it shall
     7  have become a law and shall apply to home loans entered into on or after
     8  such effective date.