S T A T E O F N E W Y O R K
________________________________________________________________________
1611
2021-2022 Regular Sessions
I N A S S E M B L Y
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:
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.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05477-01-1
A. 1611 2
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
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.
ยง 2. This act shall take effect immediately.