* § 9-x. Mortgage forbearance. 1. As used in this section, the\nfollowing terms shall have the following meanings:\n (a) "Covered period" means March 7, 2020 until the later of December\n31, 2021 or the date on which none of the provisions that closed or\notherwise restricted public or private businesses or places of public\naccommodation, or required postponement or cancellation of all\nnon-essential gatherings of individuals of any size for any reason in\nExecutive Orders 202.3, 202.4, 202.5, 202.6, 202.7, 202.8, 202.10,\n202.11, 202.13 or 202.14, as extended by Executive Orders 202.28 and\n202.31 and as further extended by any future Executive Order, issued in\nresponse to the COVID-19 pandemic continue to apply in the county of the\nqualified mortgagor's residence;\n (b) "qualified mortgagor" means an individual (i) whose primary\nresidence is located in New York and is encumbered by a home loan\npursuant to paragraph (a) of subdivision six of section thirteen hundred\nfour of the real property actions and proceedings law or whose primary\nresidence is located in New York and is a co-operative unit whose shares\nare encumbered by any loan otherwise meeting the requirements of a home\nloan under paragraph (a) of subdivision six of section thirteen hundred\nfour of the real property actions and proceedings law, from or serviced\nby a regulated institution; and (ii) who demonstrates financial hardship\nas a result of COVID-19 during the covered period;\n (c) "regulated institution" means any New York regulated banking\norganization as defined in this chapter and any New York regulated\nmortgage servicer entity subject to supervision by the department; and\n (d) "trial period plan" means an agreement whereby the mortgagor is\nrequired to make trial payments in full and on-time in order to be\nconsidered for a permanent loan modification.\n 2. Notwithstanding any other provision of law, New York regulated\ninstitutions shall:\n (a) make applications for forbearance of any payment due on a\nresidential mortgage of a property located in New York widely available\nto any qualified mortgagor who, during the covered period, is in arrears\nor on a trial period plan, or who has applied for loss mitigation; and\n (b) grant such forbearance of all monthly payments due with respect to\nthe mortgage secured by the qualified mortgagor's primary residence in\nNew York for a period of up to one hundred eighty days to any such\nqualified mortgagor, with the option to extend the forbearance of such\nmonthly payments for up to an additional one hundred eighty days\nprovided that this extension is subject to the mortgagor demonstrating\ncontinued financial hardship. If any qualified mortgagor has already\nreceived a forbearance pursuant to executive order 202.9 of two thousand\ntwenty, the time of such forbearance shall be considered as part of the\nrequirement of this section to provide a forbearance of up to one\nhundred eighty days, and any extension thereof pursuant to this section.\n (c) Such forbearance may be backdated to March seventh, two thousand\ntwenty, provided that the maximum length of the forbearance may be no\nlonger than one hundred eighty days and any extension thereof pursuant\nto this section.\n 3. Notwithstanding any other provision of law, any mortgage\nforbearance granted by a regulated institution pursuant to executive\norder number 202.9 of two thousand twenty, this section, or 3 NYCRR Part\n119 to a qualified mortgagor as a result of financial hardship shall be\nsubject to the following provisions:\n (a) the mortgagor shall have the option to extend the term of the loan\nfor the length of the period of forbearance. The regulated institution\nshall not charge additional interest or any late fees or penalties on\nthe forborne payment; or\n (b) the mortgagor shall have the option to have the arrears\naccumulated during the forbearance period payable on a monthly basis for\nthe remaining term of the loan without
‹ Prev All New York sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.