NY State Senate Bill 2023-S6987

Senate Bill S6987

2023-2024 Legislative Session

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

download bill text pdf

Current 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

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to banks
May 16, 2023	referred to banks

2023-S6987 (ACTIVE) - Details

Current Committee:: Senate Banks
Law Section:: Banking Law
Laws Affected:: Add §9-l, Bank L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S8444
2021-2022: S1598

2023-S6987 (ACTIVE) - Summary

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

2023-S6987 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S6987

SPONSOR: SANDERS
 
TITLE OF BILL:

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

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would provide relief to homeowners by allowing for mortgagors
to cancel or renegotiate forbearance agreements made during a state
disaster emergency.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1: "Covered period" means the beginning on the date which a
state disaster emergency, including, but not limited to, the COVID-19,
begins and ending the date 30 days after which the date the state disas-
ter emergency ends. A "qualified mortgagor" means an individual who
resides in New York whose principal dwelling is encumbered by a home

loan pursuant to paragraph (a) of subdivision 6 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 para-
graph (a) of subdivision six of section thirteen hundred four of the
real property actions and proceedings law, from or serviced by a regu-
lated institution.

Section 2 sets the effective date.

 
JUSTIFICATION:

The federal government and New York State have declared emergencies over
the coronavirus (COVID-19) pandemic. Forbearance is when the mortgage
servicer, the company that manages a loan, or lender allows the mortga-
gor to pause or reduce their payments for a limited time period.
Forbearance does not eliminate what the mortgagor owes. This bill would
provide relief to homeowners by allowing for mortgagors to cancel or
renegotiate forbearance agreements made during a state disaster emergen-
cy.

 
PRIOR LEGISLATIVE HISTORY:

2022: REFERRED TO BANKS

 
FISCAL IMPLICATIONS:

None to the State.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S6987 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6987
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               May 16, 2023
                                ___________
 
 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-l to
 read as follows:
   §  9-L.  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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07822-01-3
 S. 6987                             2

 
 CANCEL  OR RENEGOTIATE THE TERMS OF SUCH AGREEMENT IF SUCH AGREEMENT WAS
 EXECUTED DURING A COVERED PERIOD AND:
   (A)  INCLUDES  TERMS  WHICH  EXCLUDE THE OPTION OF PLACING MISSED LOAN
 PAYMENTS ON THE BACK-END OF THE LOAN WHICH IS SUBJECT OF  SUCH  FORBEAR-
 ANCE AGREEMENT; OR
   (B)  REQUIRES  MISSED LOAN PAYMENTS BE MADE UP IN FULL WITHIN A PERIOD
 OF LESS THAN TWELVE MONTHS FROM THE DATE OF SUCH AGREEMENT.
   3. 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.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.