Bill Text: NY A10499 | 2019-2020 | General Assembly | Introduced

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Bill Title: Requires the forbearance of residential mortgage payments for any mortgagor who demonstrates financial hardship as a result of the COVID-19 pandemic for one year.

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Introduced - Dead) 2020-05-22 - referred to banks [A10499 Detail]

Download: New_York-2019-A10499-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          10499

                   IN ASSEMBLY

                                      May 22, 2020
                                       ___________

        Introduced  by COMMITTEE ON RULES -- (at request of M. of A. Carroll) --
          read once and referred to the Committee on Banks

        AN ACT in relation to requiring the forbearance of residential  mortgage
          payments  for  any  mortgagor who demonstrates financial hardship as a
          result of the COVID-19 pandemic

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1. 1. As used in this section, the following terms shall have
     2  the following meanings:
     3    (a) "COVID-19 pandemic" means the global  outbreak  of  COVID-19,  the
     4  disease caused by the novel coronavirus;
     5    (b)  "banking  institution"  means any banking organization as defined
     6  under the banking law; and
     7    (c) "trial period plan" means an agreement whereby  the  mortgagor  is
     8  required  to  make  trial  payments  in  full and on-time in order to be
     9  considered for a permanent loan modification.
    10    2. Notwithstanding any other provision of  law,  banking  institutions
    11  shall:
    12    (a) make applications for forbearance of any payment due on a residen-
    13  tial  mortgage of a property located in New York widely available to any
    14  mortgagor who demonstrates financial hardship as a result of the  COVID-
    15  19  pandemic  including,  but  not  limited to, those who are already in
    16  arrears or on a trial period plan or who have  applied  for  loss  miti-
    17  gation;
    18    (b)  grant  such  forbearance for a period of at least one year to any
    19  such mortgagor who demonstrates financial hardship  including,  but  not
    20  limited  to,  those who are already in arrears or on a trial period plan
    21  or who have applied for loss mitigation; and
    22    (c) extend the term of the loan  for  the  length  of  the  period  of
    23  forbearance.
    24    3.  Notwithstanding  any  other  provision of law, adherence with this
    25  section shall be a  condition  precedent  to  commencing  a  foreclosure
    26  action  stemming  from  missed  payments which would have otherwise been
    27  subject to this section. A defendant may raise  the  violation  of  this

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD16464-02-0
        A. 10499                            2

     1  section  as  a  defense to a foreclosure action commenced on the defend-
     2  ant's property when such action is based on missed payments  that  would
     3  have otherwise been subject to this section.
     4    4.  Notwithstanding any other provision of law, any interest collected
     5  on a mortgage which was granted a forbearance under this section in  the
     6  last  year  of  such  mortgage  shall  not be taxable as for the banking
     7  institution.
     8    § 2. This act shall take effect immediately.