NY A02553

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

Permits automatic 60-day forbearance periods starting upon the act's effective date with only the borrower's oral or written affirmation of COVID-19-related financial hardship, requiring no additional documentation.

Allows forbearance to be extended for an additional 120 days upon borrower request, and further extended for 180 days (not to exceed 360 days total) with continued affirmation of COVID-19-related financial hardship.

Prohibits lenders and servicers from charging late fees, penalties, or other charges on payments made timely during forbearance periods, and bars them from reporting adverse credit information for such payments.

Defines forbearance options as either deferring arrearages to loan maturity without additional interest, or extending the loan term with capitalization or forgiveness of arrearages if the borrower cannot resume pre-forbearance payments.