Gov. Andrew Cuomo has signed a bill that will amend the Real Property Actions and Proceedings Law.
The bill (S.5785-A) will expand pleading requirements and defenses for high-cost and subprime home loans (sections 6-l and 6-m of the Banking Law) to foreclosures on one- to four-family residences. Effectively, this will give homeowners expanded statutory defenses to foreclosure actions.
And while the governor did sign the bill, he noted that “this bill contains technical flaws that prevent its effective implementation.” Therefore, legislators are expected to pass legislation in the upcoming session to clarify requirements regarding section 595-a and application of 6-l and 6-m of Banking Law.
It is set to take effect on Jan. 1, 2022 and will apply to actions commenced on or after that date. More information on the bill is available on the New York’s State of Mind blog, written by Henry Meier, the New York Credit Union Association’s SVP/general counsel.
The Association will continue to follow this and other bills passed in the last session, including the municipal deposits bill, which would allow credit unions, savings banks, savings and loan associations and federal savings associations to accept and secure deposits from municipal corporations.
On the federal level, the Association is closely following legislation that would extend the military’s interest rate cap of 36% to all consumer loans.