according to NYSAR
Lawmakers consider options to address mortgage crisis
As foreclosures continue to rise throughout the state, lawmakers are taking a hard look at how they might provide solutions to the mortgage crisis. The Assembly passed legislation to impose a one-year moratorium on foreclosures. The Senate, however, does not back the Assembly plan and may offer more support to Gov. David Paterson’s program bill (A.10817/S.8143). The governor’s bill would require lenders to send notice to borrowers 60 days before beginning foreclosure, mandate lender and homeowner meet to attempt a settlement, establish a “reasonable ability to repay” standard for home loans, require registration of mortgage loan services and would strengthen the state’s anti-predatory lending law. The bill was the subject of a Senate Banking Committee hearing this past week where it received mostly positive reviews. The Banking and Mortgage Broker industries however oppose the measure and warned lawmakers to be aware of unintended consequences of the governor’s plan including the potential of banks becoming wary of lending in New York and extending the foreclosure process in New York, already the nation’s longest.
