NY A10499

Banking institutions must make forbearance applications widely available to mortgagors with residential properties in New York who demonstrate financial hardship from the COVID-19 pandemic, including those in arrears, on trial period plans, or who have applied for loss mitigation.

Banking institutions must grant forbearance for at least one year to mortgagors demonstrating COVID-19 related financial hardship.

Loan terms must be extended by the length of the forbearance period.

Compliance with forbearance requirements is a condition precedent to commencing foreclosure actions based on missed payments subject to this section, and defendants may raise violations as a foreclosure defense.

Interest collected on mortgages granted forbearance in the final year of the loan is not taxable income for the banking institution.