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. LBD05477-01-1A. 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.