New York Amends Its Mortgage Servicing Laws to Add More Borrower Protections

New York’s amended mortgage servicing laws provide homeowners with additional protections against foreclosure.

New York has one of the highest mortgage delinquency and foreclosure rates, as well as one of the most protracted foreclosure timelines, in the country. Servicer errors, unfortunately, are common in New York foreclosures.

To help homeowners facing foreclosure in the state and reduce the number of errors in the process, New York has passed, and recently amended, laws that regulate mortgage servicers. The New York Department of Financial Services issued the amended regulations on December 18, 2019, but servicers get a 90-day transition period to implement them. So, the amendments don't officially go into effect until March 17, 2020.

In some situations, New York’s amended servicing regulations will give borrowers even more protections than they get under federal law. For instance, New York law requires the servicer to send an early-intervention notice to the borrower, similar to the one that federal law requires. But a New York notice must include additional content, like information about the servicer’s loss mitigation protocols, the nature and extent of the borrower's delinquency, and information about the availability of housing counseling services.

To get details about homeowner protections under New York’s mortgage servicing laws and find out if these laws might be able to help you avoid a foreclosure, read Foreclosure Protection Laws in New York.

Effective date: March 17, 2020