Assembly Bill A2373

2021-2022 Legislative Session

Authorizes certain state regulated institutions to offer disaster forbearance agreements to qualified mortgagors

download bill text pdf

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Archive: Last Bill Status - In Assembly Committee


  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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2021-A2373 (ACTIVE) - Details

See Senate Version of this Bill:
S1617
Current Committee:
Assembly Banks
Law Section:
Banks
Versions Introduced in Other Legislative Sessions:
2019-2020: A10555, S8446
2023-2024: A2553, S5838

2021-A2373 (ACTIVE) - Summary

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.

2021-A2373 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2373
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 19, 2021
                                ___________
 
 Introduced  by M. of A. HYNDMAN -- read once and referred to the Commit-
   tee on Banks
 
 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:

   Section 1. 1. As used in this act the following terms shall  have  the
 following meanings:
   (a)  "Disaster forbearance agreement" means (i) the deferment of total
 arrearages, including any escrow advances, to the end  of  the  existing
 term  of  the  loan,  without  charging  or collection of any additional
 interest on the deferred amount; or (ii) the extension of  the  term  of
 the  mortgage  loan,  and capitalization, deferral or forgiveness of all
 escrow advances and other  arrearages,  provided  this  loss  mitigation
 option  reduces  the  principal  and interest payment on the loan if the
 lender or servicer has information indicating that the  borrower  cannot
 resume  the  pre-forbearance  mortgage  payments  or  if the borrower is
 unable to make the payments under payment subparagraph (i) of this para-
 graph.
   (b) "Qualified mortgagor" means a residential or  commercial  borrower
 whose  mortgage  loan  became delinquent 60 days or more due directly or
 indirectly to the COVID-19 emergency or between March 7,  2020  and  the
 effective date of this act.
   (c)  "Regulated  institution" means any state regulated banking organ-
 ization as defined in section 2 of the banking law and any  state  regu-
 lated  mortgage  servicer entity subject to the authority of the depart-
 ment of financial services.
   2. Notwithstanding any provision of law to the contrary,  every  regu-
 lated  institution  is  authorized  to  automatically  offer  a disaster
 forbearance agreement that begins on the effective date of this act  for
 a  period  of  60 days. No documents will be required from the qualified
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

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