Bill > S05528

This bill provides relief for mortgage borrowers affected by the COVID-19 emergency by authorizing state-regulated financial institutions to offer "disaster forbearance agreements" to qualified mortgagors. These agreements allow borrowers whose mortgage payments became delinquent due to COVID-19 between March 7, 2020, and the bill's effective date to defer their mortgage payments without additional interest charges. The bill enables borrowers to receive an initial 60-day forbearance automatically, with the option to extend for an additional 120 days and then another 180 days (not to exceed 360 days total) by simply affirming their financial hardship, either orally or in writing. During the forbearance period, lenders cannot charge late fees, penalties, or report adverse credit information for missed payments. The bill defines a "qualified mortgagor" as a residential or commercial borrower whose mortgage became at least 60 days delinquent due to COVID-19, and applies to state-regulated banking organizations and mortgage servicers. The superintendent of financial services is tasked with creating rules to implement these provisions, and the bill takes effect immediately.

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https://www.nysenate.gov/legislation/bills/2025/S5528