Senate Bill S8444

2019-2020 Legislative Session

Relates to allowing for mortgagors to cancel or renegotiate forbearance agreements made during a state disaster emergency

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Senate Committee Banks Committee


  • 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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2019-S8444 (ACTIVE) - Details

See Assembly Version of this Bill:
A10554
Current Committee:
Senate Banks
Law Section:
Banking Law
Laws Affected:
Add §9-x, Bank L
Versions Introduced in Other Legislative Sessions:
2021-2022: S1598
2023-2024: S6987

2019-S8444 (ACTIVE) - Summary

Allows for mortgagors to cancel or renegotiate forbearance agreements made during a state disaster emergency.

2019-S8444 (ACTIVE) - Sponsor Memo

2019-S8444 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8444
 
                             I N  S E N A T E
 
                               June 3, 2020
                                ___________
 
 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 allowing for  mortgagors
   to  cancel  or  renegotiate forbearance agreements made during a state
   disaster emergency
 
   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.  CANCELLATION  OR  RENEGOTIATION  OF  FORBEARANCE   AGREEMENTS
 EXECUTED  DURING A STATE DISASTER EMERGENCY. 1. AS USED IN THIS SECTION,
 THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A) "COVERED PERIOD" MEANS THE PERIOD BEGINNING ON THE DATE ON WHICH A
 STATE DISASTER EMERGENCY, INCLUDING, BUT NOT LIMITED  TO,  THE  COVID-19
 PANDEMIC,  BEGINS  AND  ENDING ON THE DATE THAT IS THIRTY DAYS AFTER THE
 DATE ON WHICH SUCH STATE DISASTER EMERGENCY ENDS.
   (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.
   2. NOTWITHSTANDING ANY OTHER PROVISION  OF  LAW,  NEW  YORK  REGULATED
 INSTITUTIONS  SHALL  PROVIDE  QUALIFIED  MORTGAGORS  WHO HAVE EXECUTED A
 FORBEARANCE AGREEMENT WITH SUCH  REGULATED  INSTITUTION  THE  OPTION  TO
 CANCEL  OR RENEGOTIATE THE TERMS OF SUCH AGREEMENT IF SUCH AGREEMENT WAS
 EXECUTED DURING A COVERED PERIOD AND:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD16381-01-0
              

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