DFS issued FAQs to assist loan servicers in working with borrowers financially impacted by the COVID-19 pandemic. Here’s the link to the Department’s FAQs on the new regulation.
October 25, 2019: NYMBA, with other industry professionals, met with the Governor’s staff about the need for titling conversion in New York. Currently, manufactured housing is titled as personal property/chattel and there is no mechanism to convert title to real property. New York is the only state that does not allow for title conversion for manufactured housing.
With over 190,000 manufactured housing units in New York State, primarily located in rural upstate, western New York, and areas of Long Island and Staten Island, manufactured housing remains a source of affordable housing and a means for low and moderate income New Yorkers to establish wealth and financial security.
The Governor’s staff was very receptive to having a process for title conversion as it benefits many New Yorkers around the state and we look forward to continuing the conversation.
October 4, 2019: Loan Servicing Committee members were asked to meet with some members of the New York State Legislature regarding “Zombie Properties” and foreclosures in the state. Assembly members Fahy and McDonald and Senator Breslin were interested in how bid prices are arrived at for properties at foreclosure auctions. The issue of maintenance and upkeep of vacant properties that are mortgaged was also raised.
Jodi Gaines, NYMBA committee chair, provided an overview of the Loan Servicing Committee and the working groups that were formed in an effort to address vacancy and blight; the foreclosure court backlog in New York; improving relationships and communications among all stakeholders; and industry professionals sharing best practices.
NYMBA reviewed investor and insurer requirements and instructions to banks/ loan servicers relative to arriving at bid prices at foreclosure sale/auction. Most financial institutions focus on current economic variables, not speculation–per shareholder and credit risk policies and have proprietary foreclosure bid strategies. NYMBA dispelled the perception that banks/servicers hold onto REOs as it is more costly to hold properties in inventory compared to selling them to a third party.
Each of New York State’s 62 counties has its own procedures and processes for handling foreclosure matters. Zombie Properties are identified as vacant and abandoned–including non-mortgaged properties; as a result of a number of circumstances: the death of a property owner, tax payment delinquencies and mortgage default are among the top causes. These properties are typically neglected resulting in a negative affect on neighboring property values and a drain on local governments.
Foreclosure timelines in New York are one of the longest in the country. Court delays occur due to the unique processes judges in each county employ when working with foreclosures. Until the backlog of foreclosure cases is addressed, New York will continue to encounter issues with vacancy, abandonment and blight. NYMBA continues to be an advocate for a fast-track foreclosure process of vacant and abandoned properties. NYMBA’s loan servicing committee offered suggestions to improve efficiency thereby reducing the length of time it takes to complete foreclosures in New York.
NYMBA continues to be a resource to law makers and stakeholders, and works toward identifying concerns, presenting solutions and preserving the housing market for New York consumers. New York Mortgage Bankers Association supports homeownership for New Yorkers throughout the state.
Peter Dean, Executive Deputy Superintendent and Rholda Rickets, Deputy Superintendent of New York State Department of Financial Services met with New York MBA Executive Board members regarding Federal legislation mandating Temporary Authority for Loan Officers; the new state regulation mandating Credit Reporting Agency Registry and proposed Online Notarization.