NY State Senate Bill 2019-S8446A

Senate Bill S8446A

2019-2020 Legislative Session

Authorizes certain state regulated institutions to offer disaster forbearance agreements to qualified mortgagors

download bill text pdf

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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 26, 2020	print number 8446a
Jun 26, 2020	amend (t) and recommit to banks
Jun 03, 2020	referred to banks

Bill Amendments

Original

A (Active)

2019-S8446 - Details

See Assembly Version of this Bill:: A10555
Current Committee:: Senate Banks
Law Section:: Banks
Versions Introduced in Other Legislative Sessions:: 2021-2022: S1617, A2373
2023-2024: S5838, A2553

2019-S8446 - Summary

Authorizes certain state regulated institutions to offer disaster forbearance agreements to qualified mortgagors whose income has been adversely affected by the outbreak of COVID-19 and is unable to make his or her mortgage payment.

2019-S8446 - Sponsor Memo

                                
 
BILL NUMBER: S8446

SPONSOR: SANDERS
 
TITLE OF BILL:

An act authorizing certain state regulated institutions to offer disas-
ter partial claims to qualified mortgagors

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would provide relief to mortgagors (homeowners, etc.) by
authorizing certain state regulated institutions to offer disaster
partial claims to qualified mortgagors.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1:

   1. Definitions. "Disaster partial claim" means an interest-free
subordinate mortgage in the amount of any mortgage payment missed by a
qualified mortgagor due to an inability to make such payments as a

result of novel coronavirus, COVID-19, or any mortgage forbearance
granted pursuant to executive order number 202.9. Qualified mortgagor"
means a residential or commercial mortgagee whose income has been
adversely affected by the outbreak of COVID-19 and is unable to make his
or her mortgage payment or who was granted mortgage forbearance pursuant
to executive order 202.9.

   2. Every regulated institution is authorized to offer disaster
partial claims to qualified mortgagors.

Section 2 sets the effective date.

 
JUSTIFICATION:

The federal government and New York State have declared emergencies over
the coronavirus (COVID-19) pandemic. This bill would authorize certain
state regulated institutions to offer disaster partial claims to quali-
fied mortgagors to provide relief to mortgagors who cannot make a mort-
gage payment due to the COVID-19 pandemic.

 
PRIOR LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPLICATIONS:

None to the State.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2019-S8446 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8446
 
                             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 authorizing certain state regulated institutions to offer  disas-
   ter partial claims 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 partial claim" means an interest-free subordinate mort-
 gage in the amount of any mortgage payment missed by a qualified mortga-
 gor due to an inability to make such payments as a result of novel coro-
 navirus, COVID-19, or  any  mortgage  forbearance  granted  pursuant  to
 executive order number 202.9.
   (b)  "Qualified mortgagor" means a residential or commercial mortgagee
 whose income has been adversely affected by the outbreak of COVID-19 and
 is unable to make his or her mortgage payment or who was  granted  mort-
 gage forbearance pursuant to executive order 202.9.
   (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  offer disaster partial claims to
 qualified mortgagors.
   3. No regulated institution shall report any new  adverse  information
 relative  to  any  payment or non-payment of a mortgage during the state
 disaster emergency declared pursuant to executive order 202.
   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.
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD16377-01-0

2019-S8446A (ACTIVE) - Details

See Assembly Version of this Bill:: A10555
Current Committee:: Senate Banks
Law Section:: Banks
Versions Introduced in Other Legislative Sessions:: 2021-2022: S1617, A2373
2023-2024: S5838, A2553

2019-S8446A (ACTIVE) - Summary

2019-S8446A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S8446A

SPONSOR: SANDERS
 
TITLE OF BILL:

An act authorizing certain state regulated institutions to offer disas-
ter forbearance agreements to qualified mortgagors

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would provide relief to mortgagors (homeowners, etc.) by
authorizing certain state regulated institutions to automatically offer
disaster forbearance agreements to qualified mortgagors.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1:

1. Definitions. "Disaster forbearance agreements" means a deferment of
all mortgage arrears including escrow advances to the back end of the
loan interest free or extend the term of the loan to reduce the borrow-

er's mortgage payments.  qualified mortgagor are those residential or
commercial borrowers whose loan became delinquent 60 days or more as
result of novel coronavirus, COVID-19,

2. Every regulated institution is authorized to automatically offer
disaster forbearance agreements to qualified mortgagors.  The borrower
can extend the forbearance up to 12 months orally or in writing and is
not required to submit any documentation,

3. Prohibits lenders/servicers from reporting any derogatory comments to
the credit agencies during the forbearance period.

Section 2 sets the effective date

 
JUSTIFICATION:

The federal government and New York State have declared emergencies over
the coronavirus (COVID-19) pandemic. This bill would authorize certain
state regulated institutions to automatically offer disaster forbearance
agreement to qualified mortgagors to provide relief to mortgagors who
cannot make a mortgage payment due to the COVID-19 pandemic.

This bill was amended to mirror the language contained in the Health and
Economic Recovery Omnibus Emergencies Solutions (HEROES) act, Division
K, Title II entitled "Protecting Renters and Homeowners from Evictions
and Foreclosures" that was passed by the House of Representatives on May
15, 2020.

 
PRIOR LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPLICATIONS:

None to the State.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2019-S8446A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8446--A
 
                             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  --  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.
                                                            LBD16377-02-0

 S. 8446--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.

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