NY A03874

Requires lenders to file a petition with the supreme court and attend a mandatory settlement conference within 60 days when foreclosing on a cooperative apartment unit loan where the borrower resides in the property

Pro se borrowers at the initial conference are automatically deemed to have requested to proceed as a poor person, allowing the court to potentially appoint counsel and adjourn for settlement discussions

Mandates both parties negotiate in good faith, with lenders required to bring payment history, loan documents, itemization of amounts owed, and details on any loss mitigation options or modification evaluations

Courts must send borrower information to designated housing counseling agencies and notify parties of conference requirements, including which documents to bring

Lenders found to have negotiated in bad faith face penalties including tolling of interest/fees, civil penalties up to $25,000, and attorneys' fees; borrowers who fail to negotiate in good faith may have their case removed from the conference calendar