The Subprime Lending Reform Bill which was signed by Gov. David Patterson and is supported by the New York Sate Association of Realtors, has succeeded in changing the state’s foreclosure laws. This bill, which was signed in August 2008, implements a series of reforms to prevent another crisis in the future.
Lenders must give homeowners at least 90 days warning prior to initiating foreclosure proceedings and provide them with a list of local, state approved housing counselors.
Lenders must meet with those who have defaulted and face foreclosure along with making a “reasonable and good faith” effort to determine whether an applicant can repay a loan.
Consumer protection requires loan brokers to act in the borrower’s best interest and offer loans that are best suited to their financial situation.
For help or additional information, New Yorkers can call the New York State Banking.