NYDFS Mortgage Forbearance Relief

On Mar. 24, NYDFS issued emergency regulation for financial relief.

  • NYDFS issued new emergency regulation requiring NY regulated financial institutions to provide financial relief to New Yorkers showing financial hardship from COVID-19.
  • Emergency regulation adopted pursuant to Gov. Cuomo’s Executive Order No. 202.9.
  • Mortgage Forbearance
  • NY State regulated financial firms must provide residential mortgage forbearance.
  • Applies to property located in NY that is owned by individual residing in NY.
  • Individual must demonstrate financial hardship due to virus; forbearance for 90 days.
  • Requires NY regulated banks eliminate ATM, overdraft, credit card late payment fees.
  • Customer must demonstrate financial hardship due to pandemic.
  • Regulated institutions are not limited to offering types of relief listed in the order.
  • Institutions encouraged, consistent with safe and sound banking practices, assist individuals with demonstrated financial hardship in any additional manner appropriate.
  • Exclusions
  • Not applicable to, not affect any mortgage loans made, insured, securitized by any agency or instrumentality of the US, GSE, or a Federal Home Loan Bank.
  • Not affect rights and obligations of any lender, issuer, servicer or trustee of such obligations, including servicers for the Government National Mortgage Association.
  • Not apply to commercial mortgage or any other loan not described in the regulation.

Regulators NY LEG; NYDFS
Entity Types B/D; Bank; CNSM; Exch; IA; MG Orig; Servicer
Reference PR 3/24/2020; EO 202.9, 3/21/2020; COVID-19
Functions Compliance; Financial; Legal; Operations; Reporting; Risk
Countries United States of America
Products Banking; Cards; Corporate; Deposits; Insurance; Loan; Mortgage; Payments; Securities
Regions Am
Rule Type Final
Rule Date 3/24/2020
Effective Date 3/24/2020
Rule Id 74395
Linked to N/A
Reg. Last Update 3/24/2020
Report Section US Banking

Last substantive update on 03/25/2020