NY A02373

Authorizes state-regulated banking institutions and mortgage servicers to offer disaster forbearance agreements to borrowers whose mortgages became delinquent 60+ days due to the COVID-19 emergency between March 7, 2020 and the act's effective date.

Disaster forbearance agreements allow either deferment of all arrearages to the end of the loan term without additional interest, or extension of the mortgage term with capitalization or forgiveness of arrearages and escrow advances.

Regulated institutions must automatically offer a 60-day forbearance period beginning on the act's effective date, requiring only the borrower's oral or written affirmation of COVID-19-related financial hardship.

Forbearance can be extended for an additional 120 days and then up to 180 more days (not exceeding 360 days total) upon borrower request with continued affirmation of financial hardship.

Lenders and servicers are prohibited from charging late fees or penalties on payments made timely during forbearance and must refrain from reporting adverse credit information for those payments.