New Governor Moves Quickly To Extend Foreclosure Protections

September 2, 2021 at 9:33 am 1 comment

Good morning, Folks. New York Governor Hochul convened an Extraordinary Session yesterday in which the legislature extended foreclosure and eviction protections for individuals claiming COVID related hardships until January 15th of next year. The measures impact both state and federally chartered credit unions that start foreclosure actions against delinquent homeowners and businesses.

Notice that I did not say that the legislation simply extends New York’s eviction and foreclosure ban. In response to recent rulings by the Supreme Court, landlords and lenders now have the ability to challenge an individual’s assertion that they are delinquent because of a COVID related hardship. The hardship exception applies to mortgages that are held by state or federally chartered credit unions. It does not apply to mortgages held by GSE’s.

We will have to see how this new framework is implemented. But if your credit union is interested in pursuing this option it should start identifying cases where this new exception might be applicable.

Guidance Issued On Lending To Same-sex Couples

In another important move, the Department of Financial Services issued guidance detailing steps lenders should take to prevent lending bias when making loans to same-sex couples. DFS has been working on the guidance for weeks. I will be providing more information about its specifics in a future blog. This guidance just applies to state chartered entities and licensed institutions such as state chartered credit unions and mortgage CUSO’s.

Hochul Nominates New DFS Superintendent

The above guidance was issued the same day that the Governor announced that she had chosen Adrienne Harris to lead New York’s Department of Financial Services. Harris replaces Linda Lacewell who resigned when Governor Cuomo left office.

Judging by her resume, Harris, a Columbia law school graduate, has a broad range of experience. She has served as an economic advisor during the Obama administration and as an adviser to Fintechs.

New York State’s Superintendent has historically been among the highest profile state regulators in the country. She not only oversees the banking industry but the insurance industry as well.

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

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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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