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NY A10544
Bill
Status
5/28/2020
Primary Sponsor
Rodneyse Bichotte Hermelyn
Click for details
AI Summary
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Requires New York regulated banking institutions to make forbearance applications widely available for commercial retail space mortgages to qualified small businesses that are in arrears, on trial payment plans, or facing financial hardship during the covered period (March 7, 2020 through the end of applicable COVID-19 executive orders).
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Mandates institutions grant forbearance for 180 days with an option to extend an additional 180 days; forbearance may be backdated to March 7, 2020.
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Provides qualified mortgagors three options for handling accumulated arrears: extend the loan term with waived interest and late fees, pay arrears monthly over the remaining loan term without penalties, or defer arrears as a non-interest bearing balloon payment due at loan maturity or sale/refinance.
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Prohibits regulated institutions from negatively reporting the exercise of forbearance options to credit bureaus and makes adherence to these provisions a prerequisite before commencing foreclosure actions on affected properties.
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Excludes mortgage loans made, insured, or securitized by federal agencies, government-sponsored enterprises, or federal home loan banks from these requirements.
Legislative Description
Relates to the forbearance for commercial retail space property mortgage payments; requires New York regulated banking organizations to make applications for forbearance for commercial retail space mortgages available to qualified mortgagors during the period in which the NY on PAUSE order is in effect in the county wherein the qualified mortgagor is located and to grant such applications for a period of 180 days.
Last Action
referred to banks
5/28/2020