Bill Text: NY A01611 | 2021-2022 | 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 5-0)

Status: (Introduced - Dead) 2022-01-05 - referred to banks [A01611 Detail]

Download: New_York-2021-A01611-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          1611

                               2021-2022 Regular Sessions

                   IN ASSEMBLY

                                    January 11, 2021
                                       ___________

        Introduced  by  M. of A. CARROLL, DINOWITZ, GLICK, ENGLEBRIGHT, SIMON --
          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.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05477-01-1
        A. 1611                             2

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