Bill Text: NY S02105 | 2019-2020 | General Assembly | Introduced
Bill Title: Relates to modifying delinquent mortgage loans and single point of contact.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2020-12-28 - COMMITTED TO RULES [S02105 Detail]
Download: New_York-2019-S02105-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 2105 2019-2020 Regular Sessions IN SENATE January 22, 2019 ___________ Introduced by Sen. SANDERS -- read twice and ordered printed, and when printed to be committed to the Committee on Banks AN ACT to amend the banking law, in relation to modifying delinquent mortgage 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 96-e to 2 read as follows: 3 § 96-e. Single point of contact; modifying delinquent mortgage loans. 4 1. For the purposes of this section, "mortgage servicer" shall mean a 5 person or entity responsible for the day to day management of a mortgage 6 loan account, including collecting and crediting period loan payments, 7 managing any escrow account, or enforcing mortgage loan terms either as 8 the holder of the loan note or on behalf of the holder of the loan note. 9 2. If a borrower is sixty or more days delinquent, the mortgage servi- 10 cer shall inform the borrower that if the borrower wishes to pursue a 11 loan modification or other foreclosure prevention alternative, the mort- 12 gage servicer shall establish a single point of contact for the borrow- 13 er. 14 3. Upon written or telephonic communication from a borrower who is 15 sixty or more days delinquent and who requests loss mitigation assist- 16 ance, the identity of and contact information for a single point of 17 contact shall be provided to the borrower within ten business days. The 18 mortgage servicer shall provide updated contact information to the 19 borrower if the designated single point of contact is changed no later 20 than five business days after the change. 21 4. The single point of contact shall be responsible for all of the 22 following: 23 (a) Communicating the options available to the borrower, the actions 24 the borrower must take to be considered for those options, and the EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD05333-01-9S. 2105 2 1 status of the mortgage servicer's evaluation of the borrower for those 2 options. 3 (b) Coordinating receipt of all documents associated with loan modifi- 4 cation or loss mitigation activities and notifying the borrower of any 5 missing documents. 6 (c) Maintaining and providing accurate information about the borrow- 7 er's situation and current status in the loss mitigation process. 8 (d) Ensuring that a borrower, who is not eligible for a federal making 9 home affordable program, is considered for proprietary or other investor 10 loss mitigation options. 11 (e) Having access to individuals with the ability to stop foreclosure 12 proceedings when necessary to comply with the making home affordable 13 program or New York law. 14 5. The single point of contact shall remain assigned to the borrower's 15 account until the mortgage servicer determines that all loss mitigation 16 options have been exhausted, the borrower's account becomes current, 17 or, in the case of a borrower in bankruptcy, the borrower has exhausted 18 all loss mitigation options for which the borrower is potentially eligi- 19 ble and has applied. 20 § 2. This act shall take effect immediately.
