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NY A04784
Bill
Status
2/8/2013
Primary Sponsor
Nick Perry
Click for details
AI Summary
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Banks and financial institutions entering into mortgage modification negotiations for New York properties must continue the modification process to completion, even if the mortgage is sold, transferred, or bundled into a security package during processing.
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If a mortgage under modification is sold or transferred to a third party, it shall be automatically deemed modified according to the application terms, and the purchaser must accept the modification decision and comply with all modified loan terms including the interest rate in effect at processing.
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The purchaser of a sold mortgage assumes all rights and responsibilities necessary to comply with the modified loan terms.
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These provisions apply to any mortgage loan that is three months or older at the time the modification process begins.
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The act takes effect ninety days after becoming law.
Legislative Description
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.
Last Action
referred to banks
1/8/2014