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NY A06391
Bill
Status
3/23/2015
Primary Sponsor
Nick Perry
Click for details
AI Summary
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Banks and financial institutions that begin mortgage modification negotiations 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 to a third party, it shall be automatically deemed modified according to the original modification application, and the new purchaser must accept the modification decision and be bound by its terms, including the interest rate in effect at time of processing.
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The new purchaser assumes all rights and responsibilities necessary to comply with the modified loan terms.
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These provisions apply only to mortgage loans that are three months or older at the time the modification process begins.
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The act takes effect 90 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
1/6/2016