What's happening
This bill requires banks selling or transferring mortgages during a modification process to provide borrowers with documentation and ensures new servicers honor approved loan modifications or foreclosure alternatives.
Why it matters
Enhances borrower transparency and protection. By requiring banks to provide a written list of all modification-related documents when a mortgage is sold or transferred, borrowers can better track their application status and avoid disruptions or lost paperwork during the transition.
Reduces risk of losing modification progress. The bill obligates new mortgage servicers to honor any loan modifications or foreclosure alternatives previously approved, which helps prevent borrowers from having to restart the lengthy modification process if their loan is transferred.
Closes loopholes in mortgage servicing transfers. This legislation addresses a common issue where borrowers, mid-modification, can face setbacks or unfavorable changes when their mortgage is sold, ensuring continuity of relief efforts and consistent application of previously negotiated terms.
May decrease unnecessary foreclosures. By ensuring that new servicers must uphold agreed-upon foreclosure prevention measures, the bill could lower the incidence of foreclosures caused by administrative errors or deliberate disregard of prior agreements during servicing transfers.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Protect Mortgage Modification Rights
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
History
- Signed chap.166
- Delivered to governor
- Returned to assembly
- Passed senateVote 62–0
- 3rd reading cal.1819
- Substituted for S5017A
- Referred to banks
- Delivered to senate
- Passed assembly
- Advanced to third reading cal.365
- Reported
- Reported referred to codes
Show 3 earlier actions
- Print number 92a
- Amend (t) and recommit to banks
- Referred to banks
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Protect Mortgage Modification Applicants
Senate Floor Calendar · Sponsor Kevin S. Parker
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
92--A
2019-2020 Regular Sessions
IN ASSEMBLY (Prefiled)
January 9, 2019
Introduced by M. of A. PERRY, GALEF, MONTESANO -- read once and referred 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 foreclosure prevention alternative
The People of the State of New York, represented in Senate and Assembly, 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 mortgage 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 servicing 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.
LBD05248-05-9
A. 92--A 2
tion or other foreclosure prevention alternative in accordance with the provisions of this section.
§ 2. This act shall take effect on the ninetieth day after it shall have become a law and shall apply to all mortgages entered into on or after such date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.