Legislature To Act On COVID-19 Package  

May 26, 2020 at 9:18 am 1 comment

The State Legislature heralded the start to the holiday weekend by announcing that it would be going into virtual session today and tomorrow to act on a series of bills related to COVID-19.  Many of the proposals address the areas which have been subject to executive orders and have taken effect since emergency measures were adopted on March 7th.

The bill that will probably have the most direct impact on financial institutions is S8243-C Kavanagh/A 10351-B Rozic.  This bill provides for up to six months of forbearance for individuals impacted by COVID-19 and also addresses how the amount subject to forbearance will be repaid.  Specifically, it provides borrowers with the option to:

  1. have the arrears accumulated during the forbearance payable on a monthly basis for the remaining term of the loan (without any penalties or late fees due to the forbearance), or
  2. extend the term of the loan for the length of the forbearance (with interest waived for the term of the forbearance and any late fees due to the forbearance waived), or
  3. defer the arrears accumulated during the forbearance as a non-interest bearing balloon payment payable at the maturity of the loan or when the loan is satisfied (with any late fees accumulated as a result of the forbearance waived), subject to the safety and soundness of the lender.

Like the Governor’s previous executive orders on the subject.  It does not apply to mortgages sold to Government Sponsored Enterprises (GSEs).

Here is a link where you can find the entire agenda.

Governor Announces Small Business Loan Program

The Governor announced the creation of a $100 million private loan fund that will emphasize providing loans to small minority and women owned businesses impacted by COVID-19, called the New York Forward Loan Fund.  The funds for the program will be provided by a handful of large banks with CDFIs involved in determining which businesses will get funding.  As we find out more about the program, I will pass it on.

Entry filed under: COVID-19, Mortgage Lending, New York State. Tags: , , .

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1 Comment Add your own

  • 1. Michael Murrock  |  May 26, 2020 at 9:42 am

    Henry, do you believe that S8243-C Kavanagh/A 10351-B Rozic will apply to FCU’s?

    Reply

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Authored By:

Henry Meier, Esq., Senior Vice President, General Counsel, New York Credit Union Association.

The views Henry expresses are Henry’s alone and do not necessarily reflect the views of the Association. In addition, although Henry strives to give his readers useful and accurate information on a broad range of subjects, many of which involve legal disputes, his views are not a substitute for legal advise from retained counsel.

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