[CNYBBA-LISTSERV] NY legislation re subprime loans & foreclosure

[Lynn Harper Wilson]

Here's another interesting bit of info I rec'd from ABI:
 
New York is the latest state to pass legislation with stronger protections
to address many of the abuses that led to the current foreclosure crisis,
according to a release today by the Center for Responsible Lending (CRL).
The following provisions are included in the New York bill (S. 8143-A):
. Lenders must consider a borrower's ability to repay a subprime home loan.
. Prohibition on prepayment penalties on subprime loans.
. Ban on flipping of any loans into subprime loans without a reasonable and
tangible net benefit to the borrower.
. Requirement for escrows of taxes and insurance for all subprime loans.
. Allows violations to be offered as a defense to foreclosure to help keep
people in their homes.
. Requirement of a 90-day notice for delinquent borrowers who received a
risky loan in the last five years, prior to beginning any foreclosure
proceeding.
. Requirement of settlement conferences between the foreclosing lender and
homeowner before foreclosure.
The bill has been sent to Governor David Paterson (D) for his signature
after the bill passed both the New York Senate and Assembly on Monday.
 
***************
Lynn Harper Wilson, Staff Attorney
Office of Mark W. Swimelar, Chapter 12 & 13 Trustee
Northern District of New York (Syracuse)
     <http://www.cnytrustee.com/> http://www.cnytrustee.com
        e-mail:   <mailto:lhwilson at cnytrustee.com> lhwilson at cnytrustee.com
 
 
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