New York S 4605: Allows for mortgagors to cancel or renegotiate forbearance agreements made during a state disaster emergency

Bill Text

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S04605 Summary:

BILL NOS04605 

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SAME ASNo Same As

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SPONSORSANDERS

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COSPNSR

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MLTSPNSR

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Add §9-l, Bank L

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Allows for mortgagors to cancel or renegotiate forbearance agreements made during a state disaster emergency.

Go to top S04605 Actions:

BILL NOS04605 

&nbsp

02/10/2025REFERRED TO BANKS

01/07/2026REFERRED TO BANKS

Go to topS04605 Committee&nbspVotes:

Go to topS04605 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS04605 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 4605

 2025-2026 Regular Sessions

 IN SENATE

 February 10, 2025
 ___________

 Introduced by Sen. SANDERS -- read twice and ordered printed, and when
 printed to be committed to the Committee on Banks

 AN ACT to amend the banking law, in relation to allowing for mortgagors
 to cancel or renegotiate forbearance agreements made during a state
 disaster emergency

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. The banking law is amended by adding a new section 9-l to
 2 read as follows:
 3 § 9-l. Cancellation or renegotiation of forbearance agreements
 4 executed during a state disaster emergency. 1. As used in this section,
 5 the following terms shall have the following meanings:
 6 (a) "covered period" means the period beginning on the date on which a
 7 state disaster emergency, including, but not limited to, the COVID-19
 8 pandemic, begins and ending on the date that is thirty days after the
 9 date on which such state disaster emergency ends.
 10 (b) "qualified mortgagor" means an individual who resides in New York
 11 whose principal dwelling is encumbered by a home loan pursuant to para-
 12 graph (a) of subdivision six of section thirteen hundred four of the
 13 real property actions and proceedings law or whose principal dwelling is
 14 a co-operative unit whose shares are encumbered by any loan otherwise
 15 meeting the requirements of a home loan under paragraph (a) of subdivi-
 16 sion six of section thirteen hundred four of the real property actions
 17 and proceedings law, from or serviced by a regulated institution.
 18 (c) "regulated institution" means any New York regulated banking
 19 organization as defined under this chapter and any New York regulated
 20 mortgage servicer entity subject to the authority of the department.
 21 2. Notwithstanding any other provision of law, New York regulated
 22 institutions shall provide qualified mortgagors who have executed a
 23 forbearance agreement with such regulated institution the option to

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD09227-01-5

 S. 4605 2

 1 cancel or renegotiate the terms of such agreement if such agreement was
 2 executed during a covered period and:
 3 (a) includes terms which exclude the option of placing missed loan
 4 payments on the back-end of the loan which is subject of such forbear-
 5 ance agreement; or
 6 (b) requires missed loan payments be made up in full within a period
 7 of less than twelve months from the date of such agreement.
 8 3. Notwithstanding anything to the contrary in this section, this
 9 section shall not apply to, and does not affect any mortgage loans made,
 10 insured, or securitized by any agency or instrumentality of the United
 11 States, any government sponsored enterprise, or a federal home loan
 12 bank, or the rights and obligations of any lender, issuer, servicer or
 13 trustee of such obligations, including servicers for the Government
 14 National Mortgage Association.
 15 § 2. This act shall take effect immediately.

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