S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                 10555--A
 
                           I N  A S S E M B L Y
 
                               May 29, 2020
                                ___________
 
 Introduced  by COMMITTEE ON RULES -- (at request of M. of A. Hyndman) --
   read once  and  referred  to  the  Committee  on  Banks  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN  ACT authorizing certain state regulated institutions to offer disas-
   ter forbearance agreements to qualified mortgagors

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  1. As used in this act the following terms shall have the
 following meanings:
   (a) "Disaster forbearance agreement" means (i) the deferment of  total
 arrearages,  including  any  escrow advances, to the end of the existing
 term of the loan, without  charging  or  collection  of  any  additional
 interest  on  the  deferred amount; or (ii) the extension of the term of
 the mortgage loan, and capitalization, deferral or  forgiveness  of  all
 escrow  advances  and  other  arrearages,  provided this loss mitigation
 option reduces the principal and interest payment on  the  loan  if  the
 lender  or  servicer has information indicating that the borrower cannot
 resume the pre-forbearance mortgage  payments  or  if  the  borrower  is
 unable to make the payments under payment subparagraph (i) of this para-
 graph.
   (b)  "Qualified  mortgagor" means a residential or commercial borrower
 whose mortgage loan became delinquent 60 days or more  due  directly  or
 indirectly  to  the  COVID-19 emergency or between March 7, 2020 and the
 effective date of this act.
   (c) "Regulated institution" means any state regulated  banking  organ-
 ization  as  defined in section 2 of the banking law and any state regu-
 lated mortgage servicer entity subject to the authority of  the  depart-
 ment of financial services.
   2.  Notwithstanding  any provision of law to the contrary, every regu-
 lated institution  is  authorized  to  automatically  offer  a  disaster
 forbearance  agreement that begins on the effective date of this act for
 a period of 60 days. No documents will be required  from  the  qualified
 mortgagor  with  respect  to a disaster forbearance agreement other than
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD16377-03-0

 A. 10555--A                         2
 
 the borrower's affirmation (oral or written)  to  a  financial  hardship
 that  prevents  the borrower from making timely payments on the mortgage
 loan due, directly or indirectly, to the COVID-19 emergency.
   (a)  A  disaster  forbearance agreement shall be extended for an addi-
 tional 120 days upon the borrower's request, oral or written,  submitted
 to  the lender or servicer affirming that the borrower is experiencing a
 financial hardship that prevents the borrower from  making  payments  on
 the mortgage due, directly or indirectly, to the COVID-19 emergency.
   (b)  A  forbearance  extended  under paragraph (a) of this subdivision
 shall be extended for an additional 180 days not to exceed 360 days upon
 the borrower's request, oral or written,  submitted  to  the  lender  or
 servicer  affirming  that the borrower is experiencing a financial hard-
 ship that prevents the borrower from making  payments  on  the  mortgage
 due, directly or indirectly, to the COVID-19 emergency.
   3.  Treatment after forbearance. A lender or servicer of such loan (a)
 may not charge any late fees, penalties or other charges with respect to
 payments on the loan that were due during  the  forbearance  period,  if
 such  payments are made timely during the term of the agreement; and (b)
 is prohibited from reporting any adverse information to a credit  agency
 with  respect  to  any  payments  on  the  loan that were due during the
 forbearance period, if such payments are made timely during the term  of
 the agreement.
   4. The superintendent of financial services shall promulgate any rules
 and regulations necessary to implement the provisions of this act.
   § 2. This act shall take effect immediately.