Bill Text: NY S08446 | 2019-2020 | General Assembly | Amended
Bill Title: 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.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-06-26 - PRINT NUMBER 8446A [S08446 Detail]
Download: New_York-2019-S08446-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 8446--A IN SENATE 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: 1 Section 1. 1. As used in this act the following terms shall have the 2 following meanings: 3 (a) "Disaster forbearance agreement" means (i) the deferment of total 4 arrearages, including any escrow advances, to the end of the existing 5 term of the loan, without charging or collection of any additional 6 interest on the deferred amount; or (ii) the extension of the term of 7 the mortgage loan, and capitalization, deferral or forgiveness of all 8 escrow advances and other arrearages, provided this loss mitigation 9 option reduces the principal and interest payment on the loan if the 10 lender or servicer has information indicating that the borrower cannot 11 resume the pre-forbearance mortgage payments or if the borrower is 12 unable to make the payments under payment subparagraph (i) of this para- 13 graph. 14 (b) "Qualified mortgagor" means a residential or commercial borrower 15 whose mortgage loan became delinquent 60 days or more due directly or 16 indirectly to the COVID-19 emergency or between March 7, 2020 and the 17 effective date of this act. 18 (c) "Regulated institution" means any state regulated banking organ- 19 ization as defined in section 2 of the banking law and any state regu- 20 lated mortgage servicer entity subject to the authority of the depart- 21 ment of financial services. 22 2. Notwithstanding any provision of law to the contrary, every regu- 23 lated institution is authorized to automatically offer a disaster 24 forbearance agreement that begins on the effective date of this act for 25 a period of 60 days. No documents will be required from the qualified 26 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. LBD16377-02-0S. 8446--A 2 1 the borrower's affirmation (oral or written) to a financial hardship 2 that prevents the borrower from making timely payments on the mortgage 3 loan due, directly or indirectly, to the COVID-19 emergency. 4 (a) A disaster forbearance agreement shall be extended for an addi- 5 tional 120 days upon the borrower's request, oral or written, submitted 6 to the lender or servicer affirming that the borrower is experiencing a 7 financial hardship that prevents the borrower from making payments on 8 the mortgage due, directly or indirectly, to the COVID-19 emergency. 9 (b) A forbearance extended under paragraph (a) of this subdivision 10 shall be extended for an additional 180 days not to exceed 360 days upon 11 the borrower's request, oral or written, submitted to the lender or 12 servicer affirming that the borrower is experiencing a financial hard- 13 ship that prevents the borrower from making payments on the mortgage 14 due, directly or indirectly, to the COVID-19 emergency. 15 3. Treatment after forbearance. A lender or servicer of such loan (a) 16 may not charge any late fees, penalties or other charges with respect to 17 payments on the loan that were due during the forbearance period, if 18 such payments are made timely during the term of the agreement; and (b) 19 is prohibited from reporting any adverse information to a credit agency 20 with respect to any payments on the loan that were due during the 21 forbearance period, if such payments are made timely during the term of 22 the agreement. 23 4. The superintendent of financial services shall promulgate any rules 24 and regulations necessary to implement the provisions of this act. 25 § 2. This act shall take effect immediately.
