S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10499
 
                           I N  A S S E M B L Y
 
                               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:
 
   Section  1. 1. As used in this section, the following terms shall have
 the following meanings:
   (a) "COVID-19 pandemic" means the global  outbreak  of  COVID-19,  the
 disease caused by the novel coronavirus;
   (b)  "banking  institution"  means any banking organization as defined
 under the banking law; and
   (c) "trial period plan" means an agreement whereby  the  mortgagor  is
 required  to  make  trial  payments  in  full and on-time in order to be
 considered for a permanent loan modification.
   2. Notwithstanding any other provision of  law,  banking  institutions
 shall:
   (a) make applications for forbearance of any payment due on a residen-
 tial  mortgage of a property located in New York widely available to any
 mortgagor who demonstrates financial hardship as a result of the  COVID-
 19  pandemic  including,  but  not  limited to, those who are already in
 arrears or on a trial period plan or who have  applied  for  loss  miti-
 gation;
   (b)  grant  such  forbearance for a period of at least one year to any
 such mortgagor who demonstrates financial hardship  including,  but  not
 limited  to,  those who are already in arrears or on a trial period plan
 or who have applied for loss mitigation; and
   (c) extend the term of the loan  for  the  length  of  the  period  of
 forbearance.
   3.  Notwithstanding  any  other  provision of law, adherence with this
 section shall be a  condition  precedent  to  commencing  a  foreclosure
 action  stemming  from  missed  payments which would have otherwise been
 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
 
 section  as  a  defense to a foreclosure action commenced on the defend-
 ant's property when such action is based on missed payments  that  would
 have otherwise been subject to this section.
   4.  Notwithstanding any other provision of law, any interest collected
 on a mortgage which was granted a forbearance under this section in  the
 last  year  of  such  mortgage  shall  not be taxable as for the banking
 institution.
   § 2. This act shall take effect immediately.