Albany, NY – Subprime Lending Reform Bill Signed Into Law

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    Albany, NY – A critical subprime lending reform bill which will directly address the mortgage crisis in New York State by immediately helping to protect people from losing their homes and by mandating reforms which will help avoid another similar crisis in the future has been signed into law.

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    The subprime bill will help save thousands of New Yorkers from losing their homes. Data from the New York State Banking Department shows that approximately one in 200 New York homes is in the foreclosure process. Some areas of New York – such as Queens, Brooklyn and Long Island – are being disproportionately impacted. In Upstate New York, Monroe and Albany counties are among the hardest hit. The bill also takes into consideration the importance of striking the right balance between consumer protection and the availability of affordable credit.

    The immediate focus of the bill is on existing homeowners facing foreclosure:

    The bill requires lenders to send a pre-foreclosure notice to borrowers at least 90 days before foreclosure proceedings may be initiated. This will encourage homeowners to seek help prior to the initiation of foreclosure proceedings. The bill would also require lenders to list in the notice government approved housing counselors serving the borrower’s area.

    The bill establishes a mandatory settlement conference for foreclosure proceedings involving homeowners with certain subprime loans. For homeowners who cannot afford an attorney, the court under certain circumstances, may appoint one.

    The bill requires plaintiffs in an action against a homeowner to make an affirmative allegation that they have standing to bring the foreclosure action and have complied with certain applicable laws. Ownership of the mortgage and the note is sometimes uncertain, which has lead to questionable foreclosure practices.

    The bill includes provisions to address foreclosure rescue scams intended to take advantage of borrowers when they are most vulnerable. This bill will prohibit upfront fees and require a written contract from so-called “distressed property consultants.”


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    2 Comments
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    tzoizmir
    tzoizmir
    15 years ago

    the churban is already a fact now the goverment is coming in and going to bury the industry

    Anonymous
    Anonymous
    15 years ago

    Be very scared when the gov can alter a contract – very bad move for anyone who wants a mortgage and isn’t rich