New York Codes, Rules and Regulations
Title 3 - BANKING
Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT
Part 119 - Emergency Relief For New Yorkers Who Can Demonstrate Financial Hardship As A Result Of Covid-19
Section 119.3 - COVID-19 Relief Program
Current through Register Vol. 46, No. 12, March 20, 2024
(a) Pursuant to Executive Order 202.9 and for the duration specified therein, which may be extended, New York regulated institutions are required to, in addition to adhering to the servicing requirements of Part 419:
Notwithstanding anything else to the contrary herein, this regulation is not applicable to, and does not affect any mortgage loans made, insured, or securitized by any agency or instrumentality of the United States, any Government Sponsored Enterprise, or a Federal Home Loan Bank, or the rights and obligations of any lender, issuer, servicer or trustee of such obligations, including servicers for the Government National Mortgage Association.
(b) Pursuant to Executive Order 202.9 and for the duration specified therein, which may be extended, New York regulated banking organizations will provide the following financial relief to any individual who can demonstrate financial hardship from COVID-19, subject to the safety and soundness requirements of the regulated banking organization:
Regulated institutions are not limited to offering the types of relief listed above. Regulated institutions are encouraged, consistent with safe and sound banking practices, to take additional reasonable and prudent actions to assist individuals demonstrating financial hardship as a result of the COVID-19 pandemic in any manner they deem appropriate.
(c) As soon as reasonably practicable, and in no event not later than 10 business days following the promulgation of this regulation, all regulated institutions shall e-mail, publish on their website, mass mail, or otherwise similarly broadly communicate to customers how to apply for COVID-19 relief and provide their contact information.
(d) Qualifications to receive COVID-19 relief.
(e) Processing applications for COVID-19 relief.
(f) Pursuant to the terms of Executive Order 202.9, section 39 of the Banking Law was modified to provide that it shall be an unsafe and unsound business practice if, in response to the COVID-19 pandemic, any regulated institution shall not grant a forbearance of any payment due on a residential mortgage for a period of 90 days to any individual who has applied for such a forbearance and demonstrated a financial hardship as a result of the COVID-19 pandemic, as described herein. In assessing whether a regulated institution has engaged in an unsafe or unsound practice by denying an application for such a forbearance, the department will consider the adequacy of the process established by the regulated institution to process such forbearance applications, the thoroughness of the review afforded to the application, the payment history, creditworthiness, and the financial resources of the borrower, the application of any State and Federal laws or regulations that would prohibit the grant of a forbearance, as well as the safety and soundness requirements of the regulated institution.
(g) During examinations, the department's examiners will not criticize in their examinations prudent and reasonable efforts to grant forbearance of any payment due on a residential mortgage pursuant to this regulation and consistent with safe and sound practices.
(h) Regulated institutions are directed to maintain copies of all files relating to their implementation of this regulation for a period of seven years from the date of creation and to make such files available for inspection at the department's next examination of the regulated institution.
(i) Regulated institutions are encouraged to seek guidance from the department with respect to notices, communications, application processes, reviews and any other provisions of this regulation.
(j) To the extent there are any inconsistencies between this regulation and either of the two following guidance letters issued by the department on March 19, 2020, this regulation shall prevail:
(k) For the sake of clarity, this regulation does not apply to any commercial mortgage or any other loans not described herein.