News

News

CFPB: Treatment of Certain COVID-19 Related Loss Mitigation Options Under the Real Estate Settlement Procedures Act (RESPA), Regulation X; Interim Final Rule

The Bureau issued this interim final rule to amend Regulation X. The amendments temporarily permit mortgage servicers to offer certain loss mitigation options based on the evaluation of an incomplete loss mitigation application. Eligible loss mitigation options, among other things, must permit borrowers to delay paying certain amounts until the mortgage loan is refinanced, the mortgaged property is sold, the term of the mortgage loan ends, or, for a mortgage insured by the Federal Housing Administration, the mortgage insurance terminates. These amounts include, without limitation, all principal and interest payments forborne through payment forbearance programs made available to borrowers experiencing financial hardships due, directly or indirectly, to the COVID-19 emergency, including a payment forbearance program offered pursuant to section 4022 of the Coronavirus Aid, Relief, and Economic Security Act. These amounts also include principal and interest payments that are due and unpaid by borrowers experiencing financial hardships due, directly or indirectly, to the COVID-19 emergency.

See Interim Final Rule

New York Passes Legislation to Extend COVID Hardship Declaration Moratorium on Residential Foreclosure and Eviction Proceedings

The Hardship Declaration requirements of the New York COVID-19 Emergency Eviction and Foreclosure Prevention Act of 2020, scheduled to expire on August 31, 2021, were extended by the legislature until at least January 15, 2022.  Click HERE for a complete copy of the legislation.   

Additional language was added to the foreclosure Hardship Declaration as of September 2, 2021.  Hardship Declarations included with the 90 day notice sent in after September 2, 2021 must include the additional language.  Click HERE for copy of the new Hardship Declaration for foreclosure and HERE for a copy of the Hardship Declaration for Eviction. The additional language is highlighted in yellow.

The legislation adds three new provisions that allow a Plaintiff to challenge the claimed hardship.  These additions were added to meet the requirements of an August 12, 2021 U.S. Supreme Court Ruling that found that the eviction Hardship Declaration “scheme violates the court’s longstanding teaching that ordinarily ‘no man can be a judge in his own case’ consistent with the Due Process Clause.”  The Hardship Declaration includes notice that the Plaintiff can challenge the declaration of hardship. New foreclosures and residential evictions can be filed even if a Hardship Declaration was returned by the mortgagor if an affidavit is provided that states that “… the foreclosing party believes in good faith that the hardship certified in the hardship declaration does not exist.”  In pending cases the Plaintiff can challenge the Hardship Declaration by making a motion asking the court to hold a hearing to determine whether the defendant’s hardship claim is invalid.  The Plaintiff must have a good faith belief that the defendant has not experienced a hardship to make this motion.

The remainder of the foreclosure related requirements of the COVID-19 Emergency Eviction and Foreclosure Prevention Act of 2020 were not changed.

Click HERE to read the NY Senate Press Release.

More information on the COVID-19 Emergency Eviction and Foreclosure Prevention Act of 2020 and the foreign language translations of the Hardship Declaration, when updated by the Office of Court Administration, are located on the NY Court’s website at:

https://www.nycourts.gov/covid-eefpa.shtml
https://www.nycourts.gov/eefpa/

by Adam Gross, Partner
Gross & Polowy, LLC

NYMBA Leaders Attend 2021 National Advocacy Conference

May 11-12 The National Advocacy Conference (NAC) is MBA’s National advocacy event designed to empower MBA’s members and demonstrate to policymakers the strength of our industry’s unified voice.

Leaders of New York MBA met with Congressional representatives to discuss how legislation affects our business, our customers and the communities we serve. Key issues included: Affordable Housing (HR2143/S98) which provides a tax credit to rehab blighted homes; Expand housing opportunities for Low-to-Moderate Income wage earners and minority buyers by ensuring ease of access to down payment assistance funding with; encourage congress to urge the CFPB to ensure the General Qualified Mortgage (QM) final rule takes effect without changes when the temporary extension expires in 2022; ask Treasury & FHFA to provide GSEs with a longer compliance timeline for changes/restrictions (i.e. 7% limit on 2nd home and investment properties and “cash window” delivery option); support the Secure Notarization Act of 2021 which would allow notaries in states without RON laws to perform Remote Online Notarization that follows minimum standards and requires tamper-evident technology and multifactor authentication for identity to prevent fraud.


NYMBA Offers testimony in Assembly Hearing on RON

May 7, 2021 A hearing was held for New York State Assembly committee members on Remote Online Notarization (RON) and NYMBA offered testimony on behalf of industry supporting the passage and adoption of RON in New York. Assembly member Rozic’s bill (A0399A) mirrors Senator Skoufis’ bill (S1780B) which passed in the Senate two years in a row. For a copy of NYMBA’s testimony click HERE. To view the Assembly Public Hearing on RON click HERE.

Call To Action

March 2021 NYMBA members participated in a Take Action campaign to urge legislators to support critical legislation that would provide protections and benefits to borrowers and homeowners. The following four priorities were addressed:

-Support the enactment of Remote Online Notarization (RON); (PASSED IN THE SENATE)
-Support provisions that appropriately facilitate the LIBOR to SOFR transition (PASSED)
-Support legislation that restricts the registry and limits registration fees for foreclosed properties (PASSED)
-Support adoption of the The New York Land-Home Property Act that would provide the ability to convert title for manufactured homes from chattel to real property for title insurability and more favorable financing terms. (SPONSORED)

Why it matters: These bills are priorities that will allow our industry to serve the needs of consumers more adequately during the ongoing pandemic and ensuing recovery period. NY MBA and the national MBA have been highly engaged and supportive of these policy items and initiatives.

Post List #1

Join Mortgage Action Alliance

helmMay 26, 20203 min read

JOIN MAA TODAY! New York is the financial capital of the country, and as such, should have the highest number of MAA members.  Right now, New York is not the leader in MAA members. New York Real estate finance professionals…

FHA Extends Remote Work Flexibilities for Lenders and Appraisers

helmMay 19, 20204 min read

In addition to to issuing an extension of FHA’s foreclosure and eviction moratorium for single family homeowners, FHA also announced an extension for remote work flexibilities. Extensions Through June Provide Peace of Mind to Struggling Homeowners While Supporting New Mortgage…

Foreclosure Prevention & Refinance Report Released

helmMay 14, 20201 min read

The Foreclosure Prevention & Refinance Report and Federal Property Manager’s Report as of February 2020 has been posted.  This report quantifies the number of foreclosure prevention actions taken by Fannie Mae & Freddie Mac, the Enterprises, year-to-date and cumulative since…

April New Home Purchase Mortgage Applications Decreased 12 Percent

helmMay 14, 20202 min read

WASHINGTON, D.C. (May 14, 2020) — The Mortgage Bankers Association (MBA) Builder Application Survey (BAS) data for April 2020 shows mortgage applications for new home purchases decreased 12 percent compared from a year ago. Compared to March 2020, applications decreased by 25…

RESOURCES

Christina WileyApril 1, 20205 min read

New York: What You Need to Know Includes Reopening Phases and Travel Information NY passes new legislation to extend the eviction moratorium, suspension of mortgage and tax foreclosures, and small-business commercial eviction moratorium to Jan. 15, 2022. (9/2/2021) FHFA Extends Moratorium on Foreclosures…

MEETING THE CHALLENGE WITH 2020 VISION

helmApril 1, 20201 min read
MEETING THE CHALLENGE WITH 2020 VISION

New York MBA is holding a series of Webinars to engage members, share information and discuss the current lending environment. All members are invited to attend, and all employees of member companies are eligible to attend for free. Future members…