New York State Orders Mortgage Servicers To Offer COVID-19 Relief
New York State Orders Mortgage Servicers To Give 90-Day COVID-19 Mortgage Relief To New York Homeowners
Governor Andrew Cuomo and New York State orders lenders and mortgage servicers to step up their mortgage relief efforts. The New York Department of Financial Services demanded servicers let certain residents skip their mortgage payments for 90 days.
Cuomo announced the statewide 90-day mortgage relief period on Thursday.
NYDFSis directing mortgage servicers to offer several options to the state’s residents:
- Waiving mortgage payments based on financial hardship
- No negative reporting to credit bureaus
- Grace period for loan modification
- No late payment fees or online payment fees
- Postponing or suspending foreclosures
NYDFS also sent letters to the mortgage servicers that operate in the state:
The letter also states borrowers who demonstrate they are not able to make timely payments due to COVID-19 will be eligible for numerous options.
This also includes:
- Forbearing mortgage payments for 90 days from their due dates.
- Refraining from reporting late payments to credit rating agencies for 90 days.
- Offering mortgagors an additional 90-day grace period to complete trial loan modifications. NYDFS also does not want COVID-19 to affect their ability to obtain a permanent loan modification.
- NYDFS also wants servicers to waive late payment fees and any online payment fees for a period of 90 days.
- Postponing foreclosures and evictions for 90 days.
The NYDFS also directs servicers to proactively contact borrowers to communicate the new relief options.
The NYDFS initiative mirrors the relief efforts put forth by Fannie Mae and Freddie Mac. HUD and FHA have also initiated relief efforts.
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