N.Y. Comp. Codes R. & Regs. tit. 3 § 119.3

Current through Register Vol. 46, No. 51, December 18, 2024

Section 119.3 - COVID-19 Relief Program

(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:

(1) make applications for forbearance of any payment due on a residential mortgage of a property located in New York, widely available to any individual who resides in New York and who demonstrates financial hardship as a result of the COVID-19 pandemic; and

(2) subject to the safety and soundness requirements of the regulated institution, grant such forbearance for a period of 90 days to any such individual.

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:

(1) eliminating fees charged for the use of automated teller machines (ATMs) that are owned or operated by the regulated banking organization;

(2) eliminating any overdraft fees; and

(3) eliminating any credit card late payment fees.

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.

(1) The criteria developed by regulated institutions for individuals to qualify for COVID-19 relief shall be clear, easy to understand, and reasonably tailored to the requirements of the regulated institution to assess whether it will provide, consistent with the goals of Executive Order 202.9 and this regulation, applicable State and Federal law, and the principles of safe and sound business practices, COVID-19 relief.

(2) If a regulated institution receives an application for COVID-19 relief that omits any information that the institution reasonably needs to process the application, the institution shall promptly communicate to the applicant the nature of the missing information and how it can be provided to the institution.

(e)Processing applications for COVID-19 relief.

(1) Regulated institutions shall process and respond to requests for COVID-19 relief immediately, and in no event not later than 10 business days after the regulated institution receives all information it reasonably requires to process the application.

(2) Regulated institutions shall develop and implement procedures for the expedited processing of applications for COVID-19 relief for any individual who reasonably establishes an exigent circumstance and requests the expedited processing of the individual's application.

(3) All determinations on applications for COVID-19 relief shall be communicated to the applicant in writing where reasonably feasible and warranted, and shall state whether the regulated institution granted the application and, if the application was granted, what, if anything, the applicant needs to do to secure the relief or, if the application was denied, the reason it was denied and a statement that the applicant may file a complaint with the New York State Department of Financial Services at 1-800-342-3736 or http://www.dfs.ny.gov if the applicant believes the application was wrongly denied.

(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:

(1) Guidance to New York State Regulated and Exempt Mortgage Servicers Regarding Support for Borrowers Impacted by the Novel Coronavirus (COVID-19); and

(2) Guidance to New York State Regulated Financial Institutions Regarding Support for Consumers and Businesses Impacted by the Novel Coronavirus (COVID-19).

(k) For the sake of clarity, this regulation does not apply to any commercial mortgage or any other loans not described herein.

N.Y. Comp. Codes R. & Regs. Tit. 3 § 119.3