NY State Senate Bill 2019-S8243

Archive: Last Bill Status - Signed by Governor

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 17, 2020	signed chap.112
Jun 05, 2020	delivered to governor
May 27, 2020	returned to senate passed assembly ordered to third reading rules cal.36 substituted for a10351b referred to codes delivered to assembly passed senate ordered to third reading cal.651
May 26, 2020	reported and committed to rules
May 24, 2020	committee discharged and committed to housing, construction and community development print number 8243c
May 24, 2020	amend and recommit to banks
May 22, 2020	print number 8243b
May 22, 2020	amend and recommit to banks
May 04, 2020	print number 8243a
May 04, 2020	amend and recommit to banks
Apr 27, 2020	referred to banks

Votes

- May 27, 2020 - Floor Vote
  S8243
  
  62
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: May 27, 2020
      
      aye (62)
      
      Addabbo Jr.
      
      Akshar
      
      Amedore
      
      Bailey
      
      Benjamin
      
      Biaggi
      
      Borrello
      
      Boyle
      
      Breslin
      
      Brooks
      
      Carlucci
      
      Comrie
      
      Felder
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Gaughran
      
      Gianaris
      
      Gounardes
      
      Griffo
      
      Harckham
      
      Helming
      
      Hoylman-Sigal
      
      Jackson
      
      Jacobs
      
      Jordan
      
      Kaminsky
      
      Kaplan
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      LaValle
      
      Lanza
      
      Little
      
      Liu
      
      Martinez
      
      May
      
      Mayer
      
      Metzger
      
      Montgomery
      
      Myrie
      
      O'Mara
      
      Ortt
      
      Parker
      
      Persaud
      
      Ramos
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Salazar
      
      Sanders Jr.
      
      Savino
      
      Sepúlveda
      
      Serino
      
      Serrano
      
      Seward
      
      Skoufis
      
      Stavisky
      
      Stewart-Cousins
      
      Tedisco
      
      Thomas
  May 24, 2020 - Rules Committee Vote
  S8243
  
  19
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: May 24, 2020
      
      aye (19)
      
      Benjamin
      
      Breslin
      
      Comrie
      
      Flanagan
      
      Gianaris
      
      Griffo
      
      Hoylman-Sigal
      
      Kennedy
      
      Krueger
      
      LaValle
      
      Lanza
      
      Little
      
      Liu
      
      Martinez
      
      Parker
      
      Robach
      
      Savino
      
      Seward
      
      Stewart-Cousins
  May 26, 2020 - Housing, Construction And Community Development Committee Vote
  S8243
  
  9
  
  Aye
  
  1
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Housing, Construction And Community Development Committee Vote: May 26, 2020
      
      aye (9)
      
      Boyle
      
      Jackson
      
      Kavanagh
      
      Krueger
      
      Little
      
      Mayer
      
      Myrie
      
      Rivera
      
      Salazar
      
      nay (1)
      
      Helming
      
      aye wr (1)
      
      Amedore

Bill Amendments

Original

C (Active)

co-Sponsors

View additional co-sponsors

2019-S8243 - Details

See Assembly Version of this Bill:: A10351
Law Section:: Banking Law
Laws Affected:: Add §9-x, Bank L

2019-S8243 - Summary

Relates to the forbearance of residential mortgage payments; requires New York regulated banking organizations to make applications for forbearance for residential mortgages available to qualified mortgagors during the period in which the NY on PAUSE order is in effect in the county wherein the qualified mortgagor is located and to grant such applications for a period of 180 days.

2019-S8243 - Sponsor Memo

                                
 
BILL NUMBER: S8243

SPONSOR: KAVANAGH
 
TITLE OF BILL:

An act to amend the banking law, in relation to the forbearance of resi-
dential mortgage payments

 
PURPOSE OF BILL:

This bill would add a new section 9-x to Article 1 of the banking law to
require New York regulated institutions to grant 90 days of forbearance
to residential mortgagees who can demonstrate financial hardship as a
result of the COVID-19 pandemic.

This new section would also allow for any mortgagee granted forbearance
to choose either to extend their loan for the length of the forbearance,
or to defer the arrears as a lump sum payment due at the maturity of the
mortgage.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 of the bill adds a new section 9-x to Article 1 of the banking
law. Subsection I of section 9-x of the banking law sets forth defi-
nitions.

Subsection 2 of section 9-x of the banking law requires New York regu-
lated institutions to grant 90 days of forbearance on a residential
mortgage to any qualified mortgagee who can demonstrate financial hard-
ship as a result of the COV1D-19 pandemic. Mortgagees must submit an
application for forbearance which must be made widely available by the
lending institution. Such forbearance is available to those already in
arrears or on a trial period plan, and may be backdated to March 7,
2020.

Subsection 3 of section 9-x of the banking law requires banks to offer
mortgagees who have been granted forbearance because of the COVID-19
pandemic the following options: to extend the term of their mortgage for
the period of forbearance, or to defer the accumulated arrears as an
interest-free balloon payment payable at the maturity of the loan.  Both
of these options would prohibit a regulated lender from charging inter-
est or late fees or from negatively reporting the decision to any credit
bureau.

Subsection 4 of section 9-x of the banking law specifies that this
section will not be applicable to mortgages made, insured, or securi-
tized by any agency or instrumentality of the United States, any Govern-
ment Sponsored Enterprise, or a Federal Home Loan Bank, or the rights
and obligations of any lender, issuer, servicer, or trustee of such
obligations.

Section 2 of the bill sets forth the effective date.

 
JUSTIFICATION:

As the COVID-19 pandemic continues to wreak havoc on New York, and with
State and local governments mandating the shuttering of all but essen-
tial businesses in the interest of protecting public health, New York
has seen a rapid and unprecedented economic decline. Many New Yorkers,
facing severely reduced or entirely lost wages, will not be able to keep
up with mortgage payments during this time. With the Governor's issuance
of Executive Order 202.9, some mortgagees were given a three-month
forbearance period, but this has only slightly averted the danger of
mass displacement still at hand. This bill would extend the spirit of
the Governor's executive order to all state-regulated mortgage lenders
and servicers, requiring them to grant a three-month forbearance period
to any mortgagee who can demonstrate a significant loss of income due to
COVID-19, including those already struggling to make payments.

While the Governor's Executive Order provides immediate relief to some
homeowners, it still allows for mortgage lenders to collect the back
payments as soon as the forbearance period is over. Many homeowners will
not be able to pay the lump sum of their arrears once forbearance ends
if they have been unable to work. This bill requires regulated lenders
and servicers to allow mortgagees to either extend their mortgage for a
period of time equal to the forbearance or pay the deferred payments as
a balloon payment upon the maturity of the loan. Under this legislation,
mortgagors will also be prohibited from: charging interest during
forbearance, or on the balloon payment; charging late fees; or negative-
ly reporting the mortgagee's decision to a credit reporting bureau.

By giving homeowners this flexibility, we can provide essential security
to New Yorkers, ensuring that no one will be subject to foreclosure, or
punished with fees because of the economic havoc brought on by COVID-19.

 
LEGISLATIVE HISTORY:

This is a new bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2019-S8243 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8243
 
                             I N  S E N A T E
 
                              April 27, 2020
                                ___________
 
 Introduced  by  Sens.  KAVANAGH,  KAMINSKY,  ADDABBO, GIANARIS, HOYLMAN,
   KENNEDY, LITTLE, MARTINEZ, METZGER, SAVINO, SKOUFIS -- 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 the forbearance of resi-
   dential mortgage payments

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The banking law is amended by adding a new section 9-x to
 read as follows:
   § 9-X. MORTGAGE FORBEARANCE. 1. AS USED IN THIS SECTION, THE FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A) "COVID-19 PANDEMIC" MEANS THE GLOBAL  OUTBREAK  OF  COVID-19,  THE
 DISEASE  CAUSED  BY  THE  NOVEL  CORONAVIRUS  FIRST IDENTIFIED IN WUHAN,
 CHINA, IN OR  ABOUT  DECEMBER  TWO  THOUSAND  NINETEEN,  THAT  HAS  BEEN
 DETECTED IN INCREASING NUMBERS IN THE UNITED STATES, INCLUDING THE STATE
 OF NEW YORK;
   (B)  "QUALIFIED MORTGAGOR" MEANS AN INDIVIDUAL WHO RESIDES IN NEW YORK
 WHO HAS A MORTGAGE ON REAL RESIDENTIAL PROPERTY  IN  NEW  YORK  FROM  OR
 SERVICED BY A REGULATED INSTITUTION;
   (C)  "REGULATED  INSTITUTION"  MEANS  ANY  NEW  YORK REGULATED BANKING
 ORGANIZATION AS DEFINED UNDER THIS CHAPTER AND ANY  NEW  YORK  REGULATED
 MORTGAGE SERVICER ENTITY SUBJECT TO THE AUTHORITY OF THE DEPARTMENT; AND
   (D)  "TRIAL  PERIOD PLAN" MEANS THE TIME AFTER A MORTGAGE MODIFICATION
 AGREEMENT WHERE THE MORTGAGOR IS REQUIRED TO MAKE FULL, ON-TIME PAYMENTS
 IN ORDER FOR THE MORTGAGE MODIFICATION TO BECOME PERMANENT.
   2. NOTWITHSTANDING ANY OTHER PROVISION  OF  LAW,  NEW  YORK  REGULATED
 INSTITUTIONS SHALL:
   (A) MAKE APPLICATIONS FOR FORBEARANCE OF ANY PAYMENT DUE ON A RESIDEN-
 TIAL  MORTGAGE OF A PROPERTY LOCATED IN NEW YORK WIDELY AVAILABLE TO ANY
 QUALIFIED MORTGAGOR INCLUDING THOSE WHO ARE ALREADY IN ARREARS OR  ON  A
 TRIAL  PERIOD PLAN AND WHO DEMONSTRATE FINANCIAL HARDSHIP AS A RESULT OF
 THE COVID-19 PANDEMIC; AND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD16167-02-0

 S. 8243                             2
 
   (B) SUBJECT TO THE SAFETY AND SOUNDNESS REQUIREMENTS OF THE  REGULATED
 INSTITUTION,  GRANT  SUCH FORBEARANCE FOR A PERIOD OF NINETY DAYS TO ANY
 SUCH QUALIFIED MORTGAGOR, INCLUDING THOSE WHO ARE ALREADY IN ARREARS  OR
 ON A TRIAL PERIOD PLAN.
   (C)  SUCH  FORBEARANCE MAY BE BACKDATED TO MARCH SEVENTH, TWO THOUSAND
 TWENTY.
   3. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, ANY  MORTGAGE  FORBEAR-
 ANCE  GRANTED  BY  A  REGULATED  INSTITUTION PURSUANT TO EXECUTIVE ORDER
 NUMBER 202.9, THIS SECTION, OR ANY OTHER LAW, RULE OR REGULATION TO  THE
 QUALIFIED  MORTGAGOR AS A RESULT OF FINANCIAL HARDSHIP DUE TO THE COVID-
 19 PANDEMIC SHALL BE SUBJECT TO THE FOLLOWING PROVISIONS:
   (A) THE MORTGAGOR SHALL HAVE THE OPTION TO EXTEND THE TERM OF THE LOAN
 FOR THE LENGTH OF THE PERIOD OF FORBEARANCE, SUBJECT TO THE  SAFETY  AND
 SOUNDNESS  REQUIREMENTS  OF  THE  REGULATED  INSTITUTION.  THE REGULATED
 INSTITUTION SHALL WAIVE INTEREST ON THE PRINCIPAL FOR THE  TERM  OF  THE
 FORBEARANCE  AND  WAIVE  ANY  LATE  FEES  ACCUMULATED AS A RESULT OF THE
 FORBEARANCE; OR
   (B) THE MORTGAGOR SHALL HAVE THE OPTION TO DEFER  ARREARS  ACCUMULATED
 DURING  THE FORBEARANCE PERIOD AS A NON-INTEREST BEARING BALLOON PAYMENT
 PAYABLE AT THE MATURITY OF THE LOAN OR AT THE TIME THE LOAN IS SATISFIED
 THROUGH A REFINANCE OR SALE OF THE PROPERTY, SUBJECT TO THE  SAFETY  AND
 SOUNDNESS REQUIREMENTS OF THE REGULATED INSTITUTION.
   (C)  THE EXERCISING OF OPTIONS PROVIDED FOR IN PARAGRAPH (A) OR (B) OF
 THIS SUBDIVISION BY A QUALIFIED MORTGAGOR SHALL NOT  BE  REPORTED  NEGA-
 TIVELY TO ANY CREDIT BUREAU BY ANY REGULATED INSTITUTION.
   4.  NOTWITHSTANDING  ANYTHING  TO  THE  CONTRARY IN THIS SECTION, THIS
 SECTION SHALL NOT APPLY TO, AND DOES NOT AFFECT ANY MORTGAGE LOANS MADE,
 INSURED, OR SECURITIZED BY ANY AGENCY OR INSTRUMENTALITY OF  THE  UNITED
 STATES,  ANY  GOVERNMENT  SPONSORED  ENTERPRISE,  OR A FEDERAL HOME LOAN
 BANK, OR THE RIGHTS AND OBLIGATIONS OF ANY LENDER, ISSUER,  SERVICER  OR
 TRUSTEE  OF  SUCH  OBLIGATIONS,  INCLUDING  SERVICERS FOR THE GOVERNMENT
 NATIONAL MORTGAGE ASSOCIATION.
   § 2. This act shall take effect immediately.

co-Sponsors

View additional co-sponsors

2019-S8243A - Details

See Assembly Version of this Bill:: A10351
Law Section:: Banking Law
Laws Affected:: Add §9-x, Bank L

2019-S8243A - Summary

2019-S8243A - Sponsor Memo

                                
 
BILL NUMBER: S8243A

SPONSOR: KAVANAGH
 
TITLE OF BILL:

An act to amend the banking law, in relation to the forbearance of resi-
dential mortgage payments

 
PURPOSE OF BILL:

This bill would add a new section 9-x to Article 1 of the banking law to
require New York regulated institutions to grant 90 days of forbearance
to residential mortgagors who can demonstrate financial hardship as a
result of the COVID-19 pandemic.  This new section would also allow for
any mortgagor granted forbearance to choose either to extend their loan
for the length of the forbearance, or to defer the arrears as a lump sum
payment due at the maturity of the mortgage.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 of the bill adds a new section 9-x to Article 1 of the banking

law. Subsection 1 of section 9-x of the banking law sets forth defi-
nitions.

Subsection 2 of section 9-x of the banking law requires New York regu-
lated institutions to grant 180 days of forbearance-with the option for
an additional 180 days-on a residential mortgage to any qualified mort-
gagor who can demonstrate financial hardship as a result of the COVID-19
pandemic. Mortgagors must submit an application for forbearance which
must be made widely available by the lending institution. Such forbear-
ance is available to those already in arrears, on a trial period plan or
who have applied for loss mitigation, and may be backdated to March 7,
2020.

Subsection 3 of section 9-x of the banking law requires banks to offer
mortgagors who have been granted forbearance because of the COVID-19
pandemic the following options: to extend the term of their mortgage for
the period of forbearance, or to defer the accumulated arrears as an
interest-free balloon payment payable at the maturity of the loan.  Both
of these options would prohibit a regulated lender from charging inter-
est or late fees or from negatively reporting the decision to any credit
bureau.

Subsection 4 of section 9-x of the banking law makes non-compliance with
this section a defense to a foreclosure action raised over payments that
would have otherwise been covered by this section.

Subsection 5 of section 9-x of the banking law specifies that this
section will not be applicable to mortgages made, insured, or securi-
tized by any agency or instrumentality of the United States, any Govern-
ment Sponsored Enterprise, or a Federal Home Loan Bank, or the rights
and obligations of any lender, issuer, servicer, or trustee of such
obligations.

Section 2 of the bill sets forth the effective date. JUSTIFICATION:  As
the COVID-19 pandemic continues to wreak havoc on New York, and with
State and local governments mandating the shuttering of all but essen-
tial businesses in the interest of protecting public health, New York
has seen a rapid and unprecedented economic decline. Many New Yorkers,
facing severely reduced or entirely lost wages, will not be able to keep
up with mortgage payments during this time. With the Governor's issuance
of Executive Order 202.9, some mortgagors were given a three-month
forbearance period, but this has only slightly averted the danger of
mass displacement still at hand. This bill would extend the spirit of
the Governor's executive order to all state-regulated mortgage lenders
and servicers, requiring them to grant a six-month forbearance period-
with the option to extend another 180 days-to any mortgagor who certi-
fies they have a loss of income due to COVID-19, including those already
struggling to make payments. This brings forbearance for mortgages
issued or serviced by state-regulated institutions in line with federal-
ly-backed mortgages.

While the Governor's Executive Order provides immediate relief to some
homeowners, it still allows for mortgage lenders to collect the back
payments as soon as the forbearance period is over. Many homeowners will
not be able to pay the lump sum of their arrears once forbearance ends
if they have been unable to work. This bill requires regulated lenders
and servicers to allow mortgagors to either extend their mortgage for a
period of time equal to the forbearance or pay the deferred payments as
a balloon payment upon the maturity of the loan. Under this legislation,
mortgagors will also be prohibited from: charging interest during
forbearance, or on the balloon payment; charging late fees; or negative-
ly reporting the mortgagor's decision to a credit reporting bureau.
Compliance with this law will also be required in order for a foreclo-
sure action to proceed against a mortgagor for payments that would
otherwise have been covered by this deferment period.

By giving homeowners this flexibility, we can provide essential security
to New Yorkers, ensuring that no one will be subject to foreclosure, or
punished with fees because of the economic havoc brought on by COVID-19.

 
LEGISLATIVE HISTORY:

This is a new bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2019-S8243A - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8243--A
 
                             I N  S E N A T E
 
                              April 27, 2020
                                ___________
 
 Introduced  by  Sens.  KAVANAGH,  KAMINSKY,  ADDABBO, GIANARIS, HOYLMAN,
   KENNEDY, LITTLE, MARTINEZ, METZGER, SAVINO, SKOUFIS -- read twice  and
   ordered  printed, and when printed to be committed to the Committee on
   Banks -- committee discharged,  bill  amended,  ordered  reprinted  as
   amended and recommitted to said committee
 
 AN ACT to amend the banking law, in relation to the forbearance of resi-
   dential mortgage payments
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The banking law is amended by adding a new section  9-x  to
 read as follows:
   § 9-X. MORTGAGE FORBEARANCE. 1. AS USED IN THIS SECTION, THE FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A)  "COVID-19  PANDEMIC"  MEANS  THE GLOBAL OUTBREAK OF COVID-19, THE
 DISEASE CAUSED BY THE  NOVEL  CORONAVIRUS  FIRST  IDENTIFIED  IN  WUHAN,
 CHINA,  IN  OR  ABOUT  DECEMBER  TWO  THOUSAND  NINETEEN,  THAT HAS BEEN
 DETECTED IN INCREASING NUMBERS IN THE UNITED STATES, INCLUDING THE STATE
 OF NEW YORK;
   (B) "QUALIFIED MORTGAGOR" MEANS AN INDIVIDUAL WHO RESIDES IN NEW  YORK
 WHOSE  PRINCIPAL DWELLING IS ENCUMBERED BY A HOME LOAN PURSUANT TO PARA-
 GRAPH (A) OF SUBDIVISION SIX OF SECTION THIRTEEN  HUNDRED  FOUR  OF  THE
 REAL PROPERTY ACTIONS AND PROCEEDINGS LAW OR WHOSE PRINCIPAL DWELLING IS
 A  CO-OPERATIVE  UNIT  WHOSE SHARES ARE ENCUMBERED BY ANY LOAN OTHERWISE
 MEETING THE REQUIREMENTS OF A HOME LOAN UNDER PARAGRAPH (A) OF  SUBDIVI-
 SION  SIX  OF SECTION THIRTEEN HUNDRED FOUR OF THE REAL PROPERTY ACTIONS
 AND PROCEEDINGS LAW, FROM OR SERVICED BY A REGULATED INSTITUTION;
   (C) "REGULATED INSTITUTION"  MEANS  ANY  NEW  YORK  REGULATED  BANKING
 ORGANIZATION  AS  DEFINED  UNDER THIS CHAPTER AND ANY NEW YORK REGULATED
 MORTGAGE SERVICER ENTITY SUBJECT TO THE AUTHORITY OF THE DEPARTMENT; AND
   (D) "TRIAL PERIOD PLAN" MEANS AN AGREEMENT WHEREBY  THE  MORTGAGOR  IS
 REQUIRED  TO  MAKE  TRIAL  PAYMENTS  IN  FULL AND ON-TIME IN ORDER TO BE
 CONSIDERED FOR A PERMANENT LOAN MODIFICATION.
   2. NOTWITHSTANDING ANY OTHER PROVISION  OF  LAW,  NEW  YORK  REGULATED
 INSTITUTIONS SHALL:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD16167-04-0

 S. 8243--A                          2
 
   (A) MAKE APPLICATIONS FOR FORBEARANCE OF ANY PAYMENT DUE ON A RESIDEN-
 TIAL  MORTGAGE OF A PROPERTY LOCATED IN NEW YORK WIDELY AVAILABLE TO ANY
 QUALIFIED MORTGAGOR INCLUDING THOSE WHO ARE ALREADY IN ARREARS OR  ON  A
 TRIAL PERIOD PLAN OR WHO HAVE APPLIED FOR LOSS MITIGATION AND WHO DEMON-
 STRATE FINANCIAL HARDSHIP AS A RESULT OF THE COVID-19 PANDEMIC; AND
   (B)  GRANT SUCH FORBEARANCE FOR A PERIOD OF ONE HUNDRED EIGHTY DAYS TO
 ANY SUCH QUALIFIED MORTGAGOR, INCLUDING THOSE WHO ARE ALREADY IN ARREARS
 OR ON A TRIAL PERIOD PLAN OR WHO HAVE APPLIED FOR  LOSS  MITIGATION  AND
 WHO  DEMONSTRATE  FINANCIAL HARDSHIP, WITH THE OPTION TO EXTEND AN ADDI-
 TIONAL ONE HUNDRED EIGHTY DAYS.
   (C) SUCH FORBEARANCE MAY BE BACKDATED TO MARCH SEVENTH,  TWO  THOUSAND
 TWENTY.
   (D) THE REQUEST FOR FORBEARANCE UNDER THIS SECTION SHALL BE A PRESUMP-
 TIVE DEMONSTRATION OF HARDSHIP FOR THE PURPOSES OF THIS SECTION.
   3.  NOTWITHSTANDING  ANY OTHER PROVISION OF LAW, ANY MORTGAGE FORBEAR-
 ANCE GRANTED BY A REGULATED  INSTITUTION  PURSUANT  TO  EXECUTIVE  ORDER
 NUMBER  202.9, THIS SECTION, OR ANY OTHER LAW, RULE OR REGULATION TO THE
 QUALIFIED MORTGAGOR AS A RESULT OF FINANCIAL HARDSHIP DUE TO THE  COVID-
 19 PANDEMIC SHALL BE SUBJECT TO THE FOLLOWING PROVISIONS:
   (A) THE MORTGAGOR SHALL HAVE THE OPTION TO EXTEND THE TERM OF THE LOAN
 FOR  THE LENGTH OF THE PERIOD OF FORBEARANCE.  THE REGULATED INSTITUTION
 SHALL WAIVE INTEREST ON THE PRINCIPAL FOR THE TERM  OF  THE  FORBEARANCE
 AND WAIVE ANY LATE FEES ACCUMULATED AS A RESULT OF THE FORBEARANCE; OR
   (B)  THE  MORTGAGOR SHALL HAVE THE OPTION TO DEFER ARREARS ACCUMULATED
 DURING THE FORBEARANCE PERIOD AS A NON-INTEREST BEARING BALLOON  PAYMENT
 PAYABLE AT THE MATURITY OF THE LOAN OR AT THE TIME THE LOAN IS SATISFIED
 THROUGH A REFINANCE OR SALE OF THE PROPERTY.
   (C)  THE EXERCISING OF OPTIONS PROVIDED FOR IN PARAGRAPH (A) OR (B) OF
 THIS SUBDIVISION BY A QUALIFIED MORTGAGOR SHALL NOT  BE  REPORTED  NEGA-
 TIVELY TO ANY CREDIT BUREAU BY ANY REGULATED INSTITUTION.
   4.  NOTWITHSTANDING  ANY  OTHER  PROVISION OF LAW, ADHERENCE WITH THIS
 SECTION SHALL BE A  CONDITION  PRECEDENT  TO  COMMENCING  A  FORECLOSURE
 ACTION  STEMMING  FROM  MISSED  PAYMENTS WHICH WOULD HAVE OTHERWISE BEEN
 SUBJECT TO THIS SECTION.  A DEFENDANT MAY RAISE THE  VIOLATION  OF  THIS
 SECTION  AS  A DEFENSE TO A FORECLOSURE ACTION COMMENCED  ON THE DEFEND-
 ANT'S PROPERTY WHEN SUCH ACTION IS BASED ON MISSED PAYMENTS  THAT  WOULD
 HAVE OTHERWISE BEEN SUBJECT TO THIS SECTION.
   5.  NOTWITHSTANDING  ANYTHING  TO  THE  CONTRARY IN THIS SECTION, THIS
 SECTION SHALL NOT APPLY TO, AND DOES NOT AFFECT ANY MORTGAGE LOANS MADE,
 INSURED, OR SECURITIZED BY ANY AGENCY OR INSTRUMENTALITY OF  THE  UNITED
 STATES,  ANY  GOVERNMENT  SPONSORED  ENTERPRISE,  OR A FEDERAL HOME LOAN
 BANK, OR THE RIGHTS AND OBLIGATIONS OF ANY LENDER, ISSUER,  SERVICER  OR
 TRUSTEE  OF  SUCH  OBLIGATIONS,  INCLUDING  SERVICERS FOR THE GOVERNMENT
 NATIONAL MORTGAGE ASSOCIATION.
   § 2. This act shall take effect immediately.

co-Sponsors

View additional co-sponsors

2019-S8243B - Details

See Assembly Version of this Bill:: A10351
Law Section:: Banking Law
Laws Affected:: Add §9-x, Bank L

2019-S8243B - Summary

2019-S8243B - Sponsor Memo

                                
 
BILL NUMBER: S8243b

SPONSOR: KAVANAGH
 
TITLE OF BILL:

An act to amend the banking law, in relation to the forbearance of resi-
dential mortgage payments

 
PURPOSE OF BILL:

This bill would add a new section 9-x to Article 1 of the banking law to
require New York regulated institutions to grant 90 days of forbearance
to residential mortgagors who can demonstrate financial hardship as a
result of the COVID-19 pandemic.

This new section would also allow for any mortgagor granted forbearance
to choose either to extend their loan for the length of the forbearance,
or to defer the arrears as a lump sum payment due at the maturity of the
mortgage.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 of the bill adds a new section 9-x to Article 1 of the banking
law.

Subsection 1 of section 9-x of the banking law sets forth definitions.

Subsection 2 of section 9-x of the banking law requires New York regu-
lated institutions to grant 180 days of forbearance-with the option for
an additional 180 days-on a residential mortgage to any qualified mort-
gagor who can demonstrate financial hardship during the NY on PAUSE
Order issued in response to the COVID-19 pandemic.  Mortgagors must
submit an application for forbearance which must be made widely avail-
able by the lending institution. Such forbearance is available to those
already in arrears, on a trial period plan or who have applied for loss
mitigation, and may be backdated to March 7, 2020.

Subsection 3 of section 9-x of the banking law requires banks to offer
mortgagors who have been granted forbearance because of the COVID-19
pandemic the following options: to extend the term of their mortgage for
the period of forbearance, or to defer the accumulated arrears as an
interest-free balloon payment payable at the maturity of the loan.  Both
of these options would prohibit a regulated lender from charging inter-
est or late fees or from negatively reporting the decision to any credit
bureau.

Subsection 4 of section 9-x of the banking law makes non-compliance with
this section a defense to a foreclosure action raised over payments that
would have otherwise been covered by this section.

Subsection 5 of section 9-x of the banking law specifies that this
section will not be applicable to mortgages made, insured, or securi-
tized by any agency or instrumentality of the United States, any Govern-
ment Sponsored Enterprise, or a Federal Home Loan Bank, or the rights
and obligations of any lender, issuer, servicer, or trustee of such
obligations.

Section 2 of the bill sets forth the effective date.

 
JUSTIFICATION:

As the COVID-19 pandemic continues to wreak havoc on New York, and with
State and local governments mandating the shuttering of all but essen-
tial businesses in the interest of protecting public health, New York
has seen a rapid and unprecedented economic decline. Many New Yorkers,
facing severely reduced or entirely lost wages, will not be able to keep
up with mortgage payments during this time. With the Governor's issuance
of Executive Order 202.9, some mortgagors were given a three-month
forbearance period, but this has only slightly averted the danger of
mass displacement still at hand. This bill would extend the spirit of
the Governor's executive order to all state-regulated mortgage lenders
and servicers, requiring them to grant a six-month forbearance period-
with the option to extend another 180 days-to any mortgagor who certi-
fies they have a loss of income during the COVID-19 crisis, including
those already struggling to make payments. This brings forbearance for
mortgages issued or serviced by state-regulated institutions in line
with federally-backed mortgages.

While the Governor's Executive Order provides immediate relief to some
homeowners, it still allows for mortgage lenders to collect the back
payments as soon as the forbearance period is over. Many homeowners will
not be able to pay the lump sum of their arrears once forbearance ends
if they have been unable to work. This bill requires regulated lenders
and servicers to allow mortgagors to either extend their mortgage for a
period of time equal to the forbearance or pay the deferred payments as
a balloon payment upon the maturity of the loan. Under this legislation,
mortgagors will also be prohibited from: charging interest during
forbearance, or on the balloon payment; charging late fees; or negative-
ly reporting the mortgagor's decision to a credit reporting bureau.
Compliance with this law will also be required in order for a foreclo-
sure action to proceed against a mortgagor for payments that would
otherwise have been covered by this deferment period.

By giving homeowners this flexibility, we can provide essential security
to New Yorkers, ensuring that no one will be subject to foreclosure, or
punished with fees because of the economic havoc brought on by COVID-19.

 
LEGISLATIVE HISTORY:

This is a new bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2019-S8243B - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8243--B
 
                             I N  S E N A T E
 
                              April 27, 2020
                                ___________
 
 Introduced  by  Sens.  KAVANAGH, KAMINSKY, ADDABBO, GIANARIS, GOUNARDES,
   HOYLMAN, KENNEDY, LITTLE, MARTINEZ, METZGER, SAVINO, SKOUFIS  --  read
   twice  and  ordered  printed,  and when printed to be committed to the
   Committee on Banks --  committee  discharged,  bill  amended,  ordered
   reprinted  as  amended  and recommitted to said committee -- committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN ACT to amend the banking law, in relation to the forbearance of resi-
   dential mortgage payments
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The banking law is amended by adding a new section 9-x to
 read as follows:
   § 9-X. MORTGAGE FORBEARANCE. 1. AS USED IN THIS SECTION, THE FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A) "COVERED PERIOD" MEANS THE PERIOD DURING  WHICH  THE  RESTRICTIONS
 CONSTITUTING  NEW  YORK  ON  PAUSE, AS DEFINED BY EXECUTIVE ORDER NUMBER
 202.31 OF TWO THOUSAND TWENTY, APPLIED IN THE COUNTY OF THE  APPLICANT'S
 RESIDENCE;
   (B)  "QUALIFIED MORTGAGOR" MEANS AN INDIVIDUAL WHO RESIDES IN NEW YORK
 WHOSE PRINCIPAL DWELLING IS ENCUMBERED BY A HOME LOAN PURSUANT TO  PARA-
 GRAPH  (A)  OF  SUBDIVISION  SIX OF SECTION THIRTEEN HUNDRED FOUR OF THE
 REAL PROPERTY ACTIONS AND PROCEEDINGS LAW OR WHOSE PRINCIPAL DWELLING IS
 A CO-OPERATIVE UNIT WHOSE SHARES ARE ENCUMBERED BY  ANY  LOAN  OTHERWISE
 MEETING  THE REQUIREMENTS OF A HOME LOAN UNDER PARAGRAPH (A) OF SUBDIVI-
 SION SIX OF SECTION THIRTEEN HUNDRED FOUR OF THE REAL  PROPERTY  ACTIONS
 AND PROCEEDINGS LAW, FROM OR SERVICED BY A REGULATED INSTITUTION;
   (C)  "REGULATED  INSTITUTION"  MEANS  ANY  NEW  YORK REGULATED BANKING
 ORGANIZATION AS DEFINED UNDER THIS CHAPTER AND ANY  NEW  YORK  REGULATED
 MORTGAGE SERVICER ENTITY SUBJECT TO THE AUTHORITY OF THE DEPARTMENT; AND
   (D)  "TRIAL  PERIOD  PLAN" MEANS AN AGREEMENT WHEREBY THE MORTGAGOR IS
 REQUIRED TO MAKE TRIAL PAYMENTS IN FULL  AND  ON-TIME  IN  ORDER  TO  BE
 CONSIDERED FOR A PERMANENT LOAN MODIFICATION.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD16167-08-0

 S. 8243--B                          2
 
   2.  NOTWITHSTANDING  ANY  OTHER  PROVISION  OF LAW, NEW YORK REGULATED
 INSTITUTIONS SHALL:
   (A) MAKE APPLICATIONS FOR FORBEARANCE OF ANY PAYMENT DUE ON A RESIDEN-
 TIAL  MORTGAGE OF A PROPERTY LOCATED IN NEW YORK WIDELY AVAILABLE TO ANY
 QUALIFIED MORTGAGOR INCLUDING THOSE WHO ARE ALREADY IN ARREARS OR  ON  A
 TRIAL PERIOD PLAN OR WHO HAVE APPLIED FOR LOSS MITIGATION AND WHO DEMON-
 STRATE FINANCIAL HARDSHIP DURING THE COVERED PERIOD; AND
   (B)  GRANT SUCH FORBEARANCE FOR A PERIOD OF ONE HUNDRED EIGHTY DAYS TO
 ANY SUCH QUALIFIED MORTGAGOR, INCLUDING THOSE WHO ARE ALREADY IN ARREARS
 OR ON A TRIAL PERIOD PLAN OR WHO HAVE APPLIED FOR  LOSS  MITIGATION  AND
 WHO  DEMONSTRATE  FINANCIAL HARDSHIP, WITH THE OPTION TO EXTEND AN ADDI-
 TIONAL ONE HUNDRED EIGHTY DAYS.
   (C) SUCH FORBEARANCE MAY BE BACKDATED TO MARCH SEVENTH,  TWO  THOUSAND
 TWENTY.
   (D) THE REQUEST FOR FORBEARANCE UNDER THIS SECTION SHALL BE A PRESUMP-
 TIVE DEMONSTRATION OF HARDSHIP FOR THE PURPOSES OF THIS SECTION.
   3.  NOTWITHSTANDING  ANY OTHER PROVISION OF LAW, ANY MORTGAGE FORBEAR-
 ANCE GRANTED BY A REGULATED  INSTITUTION  PURSUANT  TO  EXECUTIVE  ORDER
 NUMBER  202.9  OF  TWO  THOUSAND TWENTY, THIS SECTION, OR ANY OTHER LAW,
 RULE OR REGULATION TO THE QUALIFIED MORTGAGOR AS A RESULT  OF  FINANCIAL
 HARDSHIP  DURING  THE  COVERED  PERIOD SHALL BE SUBJECT TO THE FOLLOWING
 PROVISIONS:
   (A) THE MORTGAGOR SHALL HAVE THE OPTION TO EXTEND THE TERM OF THE LOAN
 FOR THE LENGTH OF THE PERIOD OF FORBEARANCE.  THE REGULATED  INSTITUTION
 SHALL  WAIVE  INTEREST  ON THE PRINCIPAL FOR THE TERM OF THE FORBEARANCE
 AND WAIVE ANY LATE FEES ACCUMULATED AS A RESULT OF THE FORBEARANCE; OR
   (B) THE MORTGAGOR SHALL HAVE THE OPTION TO DEFER  ARREARS  ACCUMULATED
 DURING  THE FORBEARANCE PERIOD AS A NON-INTEREST BEARING BALLOON PAYMENT
 PAYABLE AT THE MATURITY OF THE LOAN OR AT THE TIME THE LOAN IS SATISFIED
 THROUGH A REFINANCE OR SALE OF THE PROPERTY. ANY LATE  FEES  ACCUMULATED
 AS A RESULT OF THE FORBEARANCE SHALL BE WAIVED.
   (C)  THE EXERCISING OF OPTIONS PROVIDED FOR IN PARAGRAPH (A) OR (B) OF
 THIS SUBDIVISION BY A QUALIFIED MORTGAGOR SHALL NOT  BE  REPORTED  NEGA-
 TIVELY TO ANY CREDIT BUREAU BY ANY REGULATED INSTITUTION.
   4.  NOTWITHSTANDING  ANY  OTHER  PROVISION OF LAW, ADHERENCE WITH THIS
 SECTION SHALL BE A  CONDITION  PRECEDENT  TO  COMMENCING  A  FORECLOSURE
 ACTION  STEMMING  FROM  MISSED  PAYMENTS WHICH WOULD HAVE OTHERWISE BEEN
 SUBJECT TO THIS SECTION.  A DEFENDANT MAY RAISE THE  VIOLATION  OF  THIS
 SECTION  AS  A DEFENSE TO A FORECLOSURE ACTION COMMENCED  ON THE DEFEND-
 ANT'S PROPERTY WHEN SUCH ACTION IS BASED ON MISSED PAYMENTS  THAT  WOULD
 HAVE OTHERWISE BEEN SUBJECT TO THIS SECTION.
   5.  NOTWITHSTANDING  ANYTHING  TO  THE  CONTRARY IN THIS SECTION, THIS
 SECTION SHALL NOT APPLY TO, AND DOES NOT AFFECT ANY MORTGAGE LOANS MADE,
 INSURED, OR SECURITIZED BY ANY AGENCY OR INSTRUMENTALITY OF  THE  UNITED
 STATES,  ANY  GOVERNMENT  SPONSORED  ENTERPRISE,  OR A FEDERAL HOME LOAN
 BANK, OR THE RIGHTS AND OBLIGATIONS OF ANY LENDER, ISSUER,  SERVICER  OR
 TRUSTEE  OF  SUCH  OBLIGATIONS,  INCLUDING  SERVICERS FOR THE GOVERNMENT
 NATIONAL MORTGAGE ASSOCIATION.
   § 2. This act shall take effect immediately.

co-Sponsors

View additional co-sponsors

2019-S8243C (ACTIVE) - Details

See Assembly Version of this Bill:: A10351
Law Section:: Banking Law
Laws Affected:: Add §9-x, Bank L

2019-S8243C (ACTIVE) - Summary

2019-S8243C (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S8243c

SPONSOR: KAVANAGH
 
TITLE OF BILL:

An act to amend the banking law, in relation to the forbearance of resi-
dential mortgage payments

 
PURPOSE:

This bill would add a new section 9-x to Article 1 of the banking law to
require New York regulated institutions to grant 90 days of forbearance
to residential mortgagors who can demonstrate financial hardship as a
result of the COVID-19 pandemic.

This new section would also allow for any mortgagor granted forbearance
to choose either to extend their loan for the length of the forbearance,
or to defer the arrears as a lump sum payment due at the maturity of the
mortgage.

 
SUMMARY OF PROVISIONS:

This bill would add a new section 9-x to Article 1 of the banking law to
require New York state-chartered banks and state-regulated mortgage
servicers to grant 180 days of mortgage payment forbearance (plus an
additional 180 day extension, if needed) to residential mortgagors who,
during the NYS On PAUSE period, are in arrears or on a trial plan or who
have applied for loss mitigation and demonstrate financial hardship
during the NYS On PAUSE period. Mortgagors must submit an application
for such forbearance and the application must be made widely available
by the state-chartered banks and mortgage servicers.

The bill would allow a mortgagor who is granted forbearance (which may
be backdated to March 7, 2020) to:

(a) extend the term of the loan for the length of the forbearance

(with interest waived for the term of the forbearance and any late fees
due to the forbearance waived),

(b) have the arrears accumulated during the forbearance payable on a
monthly basis for the remaining term of the loan (without any penalties
or late fees due to the forbearance), or

(c) defer the arrears accumulated during the forbearance as a non-inter-
est bearing balloon payment payable at the maturity of the loan or when
the loan is satisfied (with any late fees accumulated as a result of the
forbearance waived), subject to the safety and soundness of the lender.

The failure to comply with the forbearance provisions of this bill can
be a defense in a foreclosure action.

This bill is effective immediately and does not apply to mortgages made,
insured, or securitized by any agency or instrumentality of the United
States, any Government Sponsored Enterprise, or a Federal Home Loan
Bank, or the rights and obligations of any lender, issuer, servicer, or
trustee of such obligations.

 
JUSTIFICATION:
As the COVID-19 pandemic continues to wreak havoc on New York, and with
State and local governments mandating the shuttering of all but essen-
tial businesses in the interest of protecting public health, New York
has seen a rapid and unprecedented economic decline. Many New Yorkers,
facing severely reduced or entirely lost wages, will not be able to keep
up with mortgage payments during this time. With the Governor's issuance
of Executive Order 202.9, some mortgagors were given a three-month
forbearance period, but this has only slightly averted the danger of
mass displacement still at hand. This bill would extend the spirit of
the Governor's executive order to all state-regulated mortgage lenders
and servicers, requiring them to grant a six-month forbearance period -
with the option to extend another 180 days - to any mortgagor who certi-
fies they have a loss of income during the COVID-19 crisis, including
those already struggling to make payments. This brings forbearance for
mortgages issued or serviced by state-regulated institutions in line
with federally-backed mortgages.

While the Governor's Executive Order provides immediate relief to some
homeowners, it still allows for mortgage lenders to collect the back
payments as soon as the forbearance period is over. Many homeowners will
not be able to pay the lump sum of their arrears once forbearance ends
if they have been unable to work. This bill requires regulated lenders
and servicers to allow mortgagors to either extend their mortgage for a
period of time equal to the forbearance or pay the deferred payments as
a balloon payment upon the maturity of the loan. Under this legislation,
mortgagors will also be prohibited from: charging interest during
forbearance, or on the balloon payment; charging late fees; or negative-
ly reporting the mortgagor's decision to a credit reporting bureau.
Compliance with this law will also be required in order for a foreclo-
sure action to proceed against a mortgagor for payments that would
otherwise have been covered by this deferment period.

By giving homeowners this flexibility, we can provide essential security
to New Yorkers, ensuring that no one will be subject to foreclosure, or
punished with fees because of the economic havoc brought on by COVID-19.

 
LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2019-S8243C (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8243--C
 
                             I N  S E N A T E
 
                              April 27, 2020
                                ___________
 
 Introduced  by  Sens.  KAVANAGH, KAMINSKY, ADDABBO, GIANARIS, GOUNARDES,
   HOYLMAN, KENNEDY, LITTLE, MARTINEZ, METZGER, SAVINO, SKOUFIS  --  read
   twice  and  ordered  printed,  and when printed to be committed to the
   Committee on Banks --  committee  discharged,  bill  amended,  ordered
   reprinted  as  amended  and recommitted to said committee -- committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee  --  committee  discharged,  bill  amended,  ordered
   reprinted as amended and recommitted to said committee
 
 AN ACT to amend the banking law, in relation to the forbearance of resi-
   dential mortgage payments
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The banking law is amended by adding a new section  9-x  to
 read as follows:
   § 9-X. MORTGAGE FORBEARANCE. 1. AS USED IN THIS SECTION, THE FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A)  "COVERED PERIOD" MEANS MARCH 7, 2020 UNTIL THE DATE ON WHICH NONE
 OF THE PROVISIONS THAT CLOSED OR OTHERWISE RESTRICTED PUBLIC OR  PRIVATE
 BUSINESSES  OR  PLACES OF PUBLIC ACCOMMODATION, OR REQUIRED POSTPONEMENT
 OR CANCELLATION OF ALL NON-ESSENTIAL GATHERINGS OF  INDIVIDUALS  OF  ANY
 SIZE  FOR  ANY  REASON  IN  EXECUTIVE ORDERS 202.3, 202.4, 202.5, 202.6,
 202.7, 202.8, 202.10, 202.11, 202.13 OR 202.14, AS EXTENDED BY EXECUTIVE
 ORDERS 202.28 AND 202.31 AND AS FURTHER EXTENDED BY ANY FUTURE EXECUTIVE
 ORDER, ISSUED IN RESPONSE TO THE COVID-19 PANDEMIC CONTINUE TO APPLY  IN
 THE COUNTY OF THE QUALIFIED MORTGAGOR'S RESIDENCE;
   (B)  "QUALIFIED MORTGAGOR" MEANS AN INDIVIDUAL WHO RESIDES IN NEW YORK
 WHOSE PRINCIPAL DWELLING IS ENCUMBERED BY A HOME LOAN PURSUANT TO  PARA-
 GRAPH  (A)  OF  SUBDIVISION  SIX OF SECTION THIRTEEN HUNDRED FOUR OF THE
 REAL PROPERTY ACTIONS AND PROCEEDINGS LAW OR WHOSE PRINCIPAL DWELLING IS
 A CO-OPERATIVE UNIT WHOSE SHARES ARE ENCUMBERED BY  ANY  LOAN  OTHERWISE
 MEETING  THE REQUIREMENTS OF A HOME LOAN UNDER PARAGRAPH (A) OF SUBDIVI-
 SION SIX OF SECTION THIRTEEN HUNDRED FOUR OF THE REAL  PROPERTY  ACTIONS
 AND PROCEEDINGS LAW, FROM OR SERVICED BY A REGULATED INSTITUTION;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD16167-12-0

 S. 8243--C                          2
 
   (C)  "REGULATED  INSTITUTION"  MEANS  ANY  NEW  YORK REGULATED BANKING
 ORGANIZATION AS DEFINED IN THIS CHAPTER AND ANY NEW YORK REGULATED MORT-
 GAGE SERVICER ENTITY SUBJECT TO SUPERVISION BY THE DEPARTMENT; AND
   (D)  "TRIAL  PERIOD  PLAN" MEANS AN AGREEMENT WHEREBY THE MORTGAGOR IS
 REQUIRED TO MAKE TRIAL PAYMENTS IN FULL  AND  ON-TIME  IN  ORDER  TO  BE
 CONSIDERED FOR A PERMANENT LOAN MODIFICATION.
   2.  NOTWITHSTANDING  ANY  OTHER  PROVISION  OF LAW, NEW YORK REGULATED
 INSTITUTIONS SHALL:
   (A) MAKE APPLICATIONS FOR FORBEARANCE OF ANY PAYMENT DUE ON A RESIDEN-
 TIAL MORTGAGE OF A PROPERTY LOCATED IN NEW YORK WIDELY AVAILABLE TO  ANY
 QUALIFIED  MORTGAGOR WHO, DURING THE COVERED PERIOD, IS IN ARREARS OR ON
 A TRIAL PERIOD PLAN, OR WHO HAS APPLIED FOR LOSS MITIGATION  AND  DEMON-
 STRATES FINANCIAL HARDSHIP DURING THE COVERED PERIOD; AND
   (B)  GRANT SUCH FORBEARANCE FOR A PERIOD OF ONE HUNDRED EIGHTY DAYS TO
 ANY SUCH QUALIFIED MORTGAGOR WHO IS IN ARREARS  OR  ON  A  TRIAL  PERIOD
 PLAN,  OR WHO HAS APPLIED FOR LOSS MITIGATION AND DEMONSTRATES FINANCIAL
 HARDSHIP, WITH THE OPTION TO EXTEND AN  ADDITIONAL  ONE  HUNDRED  EIGHTY
 DAYS.
   (C)  SUCH  FORBEARANCE MAY BE BACKDATED TO MARCH SEVENTH, TWO THOUSAND
 TWENTY.
   3. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, ANY  MORTGAGE  FORBEAR-
 ANCE  GRANTED  BY  A  REGULATED  INSTITUTION PURSUANT TO EXECUTIVE ORDER
 NUMBER 202.9 OF TWO THOUSAND TWENTY, THIS SECTION,  OR  ANY  OTHER  LAW,
 RULE  OR  REGULATION TO THE QUALIFIED MORTGAGOR AS A RESULT OF FINANCIAL
 HARDSHIP DURING THE COVERED PERIOD SHALL BE  SUBJECT  TO  THE  FOLLOWING
 PROVISIONS:
   (A) THE MORTGAGOR SHALL HAVE THE OPTION TO EXTEND THE TERM OF THE LOAN
 FOR  THE LENGTH OF THE PERIOD OF FORBEARANCE.  THE REGULATED INSTITUTION
 SHALL WAIVE INTEREST ON THE PRINCIPAL FOR THE TERM  OF  THE  FORBEARANCE
 AND WAIVE ANY LATE FEES ACCUMULATED AS A RESULT OF THE FORBEARANCE; OR
   (B)  THE  MORTGAGOR  SHALL HAVE THE OPTION TO HAVE THE ARREARS ACCUMU-
 LATED DURING THE FORBEARANCE PERIOD PAYABLE ON A MONTHLY BASIS  FOR  THE
 REMAINING  TERM  OF  THE LOAN WITHOUT BEING SUBJECT TO PENALTIES OR LATE
 FEES INCURRED AS A RESULT OF THE FORBEARANCE; OR
   (C) IF THE MORTGAGOR IS UNABLE TO MAKE MORTGAGE PAYMENTS DUE TO  MORT-
 GAGORS'  DEMONSTRATED  HARDSHIP AND THE MORTGAGOR AND REGULATED INSTITU-
 TION CANNOT AGREE ON A MUTUALLY ACCEPTABLE LOAN MODIFICATION, THE  MORT-
 GAGOR  SHALL  HAVE  THE  OPTION  TO DEFER ARREARS ACCUMULATED DURING THE
 FORBEARANCE PERIOD AS A NON-INTEREST BEARING BALLOON PAYMENT PAYABLE  AT
 THE  MATURITY  OF  THE  LOAN CONSISTENT WITH THE SAFETY AND SOUNDNESS OF
 SUCH REGULATED INSTITUTION, OR AT THE TIME THE LOAN IS SATISFIED THROUGH
 A REFINANCE OR SALE OF THE PROPERTY. ANY  LATE  FEES  ACCUMULATED  AS  A
 RESULT OF THE FORBEARANCE SHALL BE WAIVED.
   (D)  THE  EXERCISING  OF OPTIONS PROVIDED FOR IN PARAGRAPH (A), (B) OR
 (C) OF THIS SUBDIVISION BY A QUALIFIED MORTGAGOR SHALL NOT  BE  REPORTED
 NEGATIVELY TO ANY CREDIT BUREAU BY ANY REGULATED INSTITUTION.
   4.  NOTWITHSTANDING  ANY  OTHER  PROVISION OF LAW, ADHERENCE WITH THIS
 SECTION SHALL BE A  CONDITION  PRECEDENT  TO  COMMENCING  A  FORECLOSURE
 ACTION  STEMMING  FROM  MISSED  PAYMENTS WHICH WOULD HAVE OTHERWISE BEEN
 SUBJECT TO THIS SECTION.  A DEFENDANT MAY RAISE THE  VIOLATION  OF  THIS
 SECTION  AS  A DEFENSE TO A FORECLOSURE ACTION COMMENCED  ON THE DEFEND-
 ANT'S PROPERTY WHEN SUCH ACTION IS BASED ON MISSED PAYMENTS  THAT  WOULD
 HAVE OTHERWISE BEEN SUBJECT TO THIS SECTION.
   5.  NOTWITHSTANDING  ANYTHING  TO  THE  CONTRARY IN THIS SECTION, THIS
 SECTION SHALL NOT APPLY TO, AND DOES NOT AFFECT ANY MORTGAGE LOANS MADE,
 INSURED, OR SECURITIZED BY ANY AGENCY OR INSTRUMENTALITY OF  THE  UNITED

 S. 8243--C                          3
 
 STATES,  ANY  GOVERNMENT  SPONSORED  ENTERPRISE,  OR A FEDERAL HOME LOAN
 BANK, OR THE RIGHTS AND OBLIGATIONS OF ANY LENDER, ISSUER,  SERVICER  OR
 TRUSTEE  OF  SUCH  OBLIGATIONS,  INCLUDING  SERVICERS FOR THE GOVERNMENT
 NATIONAL MORTGAGE ASSOCIATION.
   § 2. This act shall take effect immediately.

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Senate Bill S8243

Sponsored By

Archive: Last Bill Status - Signed by Governor

May 27, 2020 - Floor Vote

Floor Vote: May 27, 2020

May 24, 2020 - Rules Committee Vote

Rules Committee Vote: May 24, 2020

May 26, 2020 - Housing, Construction And Community Development Committee Vote

Housing, Construction And Community Development Committee Vote: May 26, 2020

Bill Amendments

co-Sponsors

2019-S8243 - Details

2019-S8243 - Summary

2019-S8243 - Sponsor Memo

2019-S8243 - Bill Text download pdf

co-Sponsors

2019-S8243A - Details

2019-S8243A - Summary

2019-S8243A - Sponsor Memo

2019-S8243A - Bill Text download pdf

co-Sponsors

2019-S8243B - Details

2019-S8243B - Summary

2019-S8243B - Sponsor Memo

2019-S8243B - Bill Text download pdf

co-Sponsors

2019-S8243C (ACTIVE) - Details

2019-S8243C (ACTIVE) - Summary

2019-S8243C (ACTIVE) - Sponsor Memo

2019-S8243C (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S8243

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Sponsored By

Archive: Last Bill Status - Signed by Governor

Bill Amendments

co-Sponsors

2019-S8243 - Details

2019-S8243 - Summary

2019-S8243 - Sponsor Memo

2019-S8243 - Bill Text download pdf

co-Sponsors

2019-S8243A - Details

2019-S8243A - Summary

2019-S8243A - Sponsor Memo

2019-S8243A - Bill Text download pdf

co-Sponsors

2019-S8243B - Details

2019-S8243B - Summary

2019-S8243B - Sponsor Memo

2019-S8243B - Bill Text download pdf

co-Sponsors

2019-S8243C (ACTIVE) - Details

2019-S8243C (ACTIVE) - Summary

2019-S8243C (ACTIVE) - Sponsor Memo

2019-S8243C (ACTIVE) - Bill Text download pdf

Comments