New York Laws
Article 8 - Conveyances and Mortgages
275 - Certificate of Discharge of Mortgage Required.

(a) the commercial practice of lenders trading or selling mortgages on
the secondary market;
(b) the replacement of a construction loan with permanent financing;
(c) the refinancing of an existing loan with a new lender, such as
where the original lender assigns a note and the mortgage securing its
payment to another lender in return for consideration and such mortgage
is consolidated with another mortgage which secures any funds advanced
by the new lender to the mortgagor;
(d) the modification of the terms of a loan by a mortgagor and
mortgagee in order to avoid foreclosure; and
(e) a refinancing that occurs in conjunction with the sale of property
such that the seller conveys property to the purchaser subject to the
lien of the mortgage and the original lender assigns its note and
mortgage on the property to the purchaser's lender.
3. Except with respect to the assignment of a mortgage in connection
with a transaction described in paragraph (a) of subdivision two of this
section, in order to record an assignment of a mortgage there must be
set forth in the assignment document or attached thereto and recorded as
part thereof a statement under oath signed by the mortgagor or any other
party to the transaction having knowledge of the facts (provided such
other party asserts such knowledge), that the assignee is not acting as
a nominee of the mortgagor and that the mortgage continues to secure a
bona fide obligation. With respect to the assignment of a mortgage in
connection with a transaction described in paragraph (a) of subdivision
two of this section, such assignment shall contain the following
statement: "This assignment is not subject to the requirements of
section two hundred seventy-five of the Real Property Law because it is
an assignment within the secondary mortgage market."

Structure New York Laws