New York passed a bill enacting transfer of servicing requirements with respect to modified mortgage loans. Under the bill, a servicer acquiring a mortgage loan that has been approved (in writing) for a loan modification or other foreclosure prevention alternative must assume all duties and obligations related to the loan modification or other foreclosure prevention alternative. In addition, the bill enacts requirements with respect to the transfer or sale of mortgage servicing rights while a loan modification application is pending. If the servicing rights are transferred or sold while a loan modification application is pending, the servicer must provide the borrower with a written list of all the documents relating to the loan modification application that were provided to the acquiring servicer. The bill becomes effective November 12, 2019.
See New York State Assembly website for the full text of the Statute:
https://nyassembly.gov/leg/?default_fld=&leg_video=&bn=A00092&term=0&Summary=Y&Text=Y
