Affordable Housing Resources for Lenders

Lauren Wiley on January 19, 2024

    • FHA/HUD Resource Page
    • Low to Moderate Income limits
    • Freddie Mac Tools & Resources Page
    • Fannie Mae Resources Page
Affordable Fridays Webinar with Long Island Housing Partnership (January 2023)

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Affordable Fridays Webinar with SONYMA (February 2023)

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Affordable Fridays Webinar: Renovation Lending & CRA (March 2023)

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Affordable Fridays Webinar: Legislation Impacting Affordable Housing (April 2023)

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Affordable Fridays Webinar: Community Land Trusts (May 2023)

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Affordable Fridays Webinar with HUD/FHA (June 2023)

FHA Resource Center

Helpful links

Affordable Fridays Webinar with Habitat for Humanity NYS (July 2023)

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Affordable Fridays Webinar: Reverse Mortgage Loan Programs (August 2023)

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Affordable Fridays Webinar with Fannie Mae & REO Properties (Sept. & Oct. 2023)

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Affordable Fridays Webinar with Freddie Mac (Nov. & Dec. 2023)

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Affordable Fridays Webinar: Loan Program for Lenders (January 2024)

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New York DFS Proposes Industry Guidance Regarding Character and Fitness Assessments

Lauren Wiley on July 5, 2023

The New York Department of Financial Services (NYDFS) recently released proposed guidance for companies to use to update their framework for the review and assessment of the character and fitness of company leaders, both upon onboarding and on an ongoing basis. If adopted, the guidance will be applicable to NYDFS regulated banks and IMBs licensed or chartered under New York law. The guidance applies to each member of a covered institution’s board of directors, board of trustees, and/or board of managers, and each senior officer. While the language of the guidance encourages a “risk-based” approach to implementation and provides a sample questionnaire, a lack of specificity in some areas requires further analysis. MBA and New York MBA have submitted a letter in response to this proposal asking for a narrower scope and greater specificity on certain items to prevent varying interpretations and uncertainty.

Why it matters: Following recent high-profile bank failures, including one under the supervision of NYDFS, the Department is signaling that it expects tighter controls and scrutiny of company leaders with respect to any potential conflicts of interest or any regulatory issues at companies where they previously served.

Decision Issued in Kessler Case

Lauren Wiley on February 14, 2023

On February 14, 2023, the New York Court of Appeals issued its decision in the case of Bank of America v. Kessler. As you are aware, last year, the Kessler decision issued by the Second Department resulted in a significant upheaval in the state, resulting in a plethora of dismissals or voluntary discontinuances due to 90 day notices containing additional information including disclosures required by Federal law.

NYMBA was one of multiple trade organizations that filed an Amicus Brief with the Court of Appeals on this case, recognizing the impact that the case had on its members and industry as a whole. Today, we are excited to announce to our members that the Court of Appeals reversed the decision issued by the Second Department Appellate Division, holding that the inclusion of concise and relevant additional information did not void the notice sent pursuant to Real Property Action and Proceedings Law §1304.

In reviewing the objectives of the legislature in enacting §1304, the Court identified two parts to review: (1) that the notice “shall include” the specified language; and (2) the notice must be sent in a separate envelope. Relying on the plain language and reading of the statute, the court determined that, in reference to the wording “shall include,” the legislature did not intend for the notice to only include the statutorily required language. As such, as the notice in Kessler included the required language per §1304, the notice complied with the requirements.

The focus then shifted to the main issue at the heart of the case as to whether the additional language violated the separate mailing requirement by constituting “other mailing or notice.” The Court of Appeals noted that to read this provision as the lower courts and apply a bright line rule “would lead to nonsensical results.” The Court clarified that “other mailing or notice” refers to notices such as default notices, interest rate changes, monthly statements, or servicer change letters. However, again looking to the legislative purpose of §1304, the Court concluded that since §1304 was designed to help borrowers avoid foreclosure, the inclusion of additional rights actually furthered the purpose of §1304. Finally, the Court noted that applying the bright-line rule also would conflict with the disclosure requirements of federal law.

Please note, the Court was conscious to note that additional language should not be “false, misleading, obfuscatory, or unrelated to the purpose of the notice”, and inclusion of such language could still void the notice.

Submitted by: Natalie Grigg, Partner of Member firm Woods Oviatt Gilman

New York Passes Legislation to Extend COVID Hardship Declaration Moratorium on Residential Foreclosure and Eviction Proceedings

Lauren Wiley on September 3, 2021

by Adam Gross, Partner
Gross & Polowy, LLC
The Hardship Declaration requirements of the New York COVID-19 Emergency Eviction and Foreclosure Prevention Act of 2020, scheduled to expire on August 31, 2021, were extended by the legislature until at least January 15, 2022.  Click HERE for a complete copy of the legislation.   

Additional language was added to the foreclosure Hardship Declaration as of September 2, 2021.  Hardship Declarations included with the 90 day notice sent in after September 2, 2021 must include the additional language.  Click HERE for copy of the new Hardship Declaration for foreclosure and HERE for a copy of the Hardship Declaration for Eviction. The additional language is highlighted in yellow.

The legislation adds three new provisions that allow a Plaintiff to challenge the claimed hardship.  These additions were added to meet the requirements of an August 12, 2021 U.S. Supreme Court Ruling that found that the eviction Hardship Declaration “scheme violates the court’s longstanding teaching that ordinarily ‘no man can be a judge in his own case’ consistent with the Due Process Clause.”  The Hardship Declaration includes notice that the Plaintiff can challenge the declaration of hardship. New foreclosures and residential evictions can be filed even if a Hardship Declaration was returned by the mortgagor if an affidavit is provided that states that “… the foreclosing party believes in good faith that the hardship certified in the hardship declaration does not exist.”  In pending cases the Plaintiff can challenge the Hardship Declaration by making a motion asking the court to hold a hearing to determine whether the defendant’s hardship claim is invalid.  The Plaintiff must have a good faith belief that the defendant has not experienced a hardship to make this motion.

The remainder of the foreclosure related requirements of the COVID-19 Emergency Eviction and Foreclosure Prevention Act of 2020 were not changed.

Click HERE to read the NY Senate Press Release.

More information on the COVID-19 Emergency Eviction and Foreclosure Prevention Act of 2020 and the foreign language translations of the Hardship Declaration, when updated by the Office of Court Administration, are located on the NY Court’s website at:

https://www.nycourts.gov/covid-eefpa.shtml
https://www.nycourts.gov/eefpa/

NY DFS on Cybersecurity

Lauren Wiley on March 3, 2021

Join us as we host the NY DFS Executive Deputy Superintendent of Cybersecurity Justin Herring; Supervisor/Examination Team Lead William Peterson; and Deputy Rholda Ricketts. Jacqueline Goralczyk, LL.M., CIPM will moderate the event. Questions may be submitted in advance.

Cybersecurity is an ongoing practice and companies need to ensure that regulations are followed and best practices are employed to protect themselves and their customers from risk.

Co-sponsored by DeAngelus Goralczyk, LLC

REGISTER HERE

Governor Signs Eviction/Foreclosure Moratorium Bill

Lauren Wiley on December 29, 2020 

A bill drafted and introduced by the NYS legislature on December 24, 2020 (A.11181/S.9114) that would prevent evictions and eviction proceedings against residential tenants and prevent foreclosure actions against homeowners and certain small landlords experiencing financial or health-related hardships due to coronavirus until May 1, 2021, was passed in a special session on December 28th and signed by the Governor that evening and is effective immediately.

Under the COVID-19 Emergency Eviction and Foreclosure Prevention Act of 2020, tenants and homeowners must make "hardship declarations," subject to penalty of perjury,  to their landlord (tenants) and lienholder (homeowners) of their inability to pay their housing expense.  The bill stays residential foreclosure proceedings for sixty days, and allows borrowers who own ten or fewer residential dwellings, including their primary residence, who are experiencing financial hardship to file a hardship declaration with the mortgage lender, other foreclosing party or the court that will prevent the filing and proceedings on a foreclosure action until May 1, 2021. 

Governor Cuomo's Press Release, 12/28/2020
Bill A.11181/S.9114. 12/24/2020

New York and the Ever-Changing Foreclosure Landscape

helm on September 4, 2020

In the first of NYMBA’s Loan Servicing “HOT TOPICS” Webinars, practicing subject matter experts will kick-off this session talking about NY Foreclosures and the Court system, Lack of Standing and the Statute of Limitations, as well as other nuances that have developed in recent months. As we continue to navigate through 2020, arguably one of the most challenging years for our industry and New York, it is important to stay connected and updated on the ever-shifting landscape. NYMBA remains committed to our industry and its members and are pleased to invite you to join in a monthly webinar series, focused on these new developments and emerging trends. We hope you’ll join us.

Please feel free to invite friends and colleagues you think will benefit from the discussion. Please note, registration is required and questions can be submitted in advance of the event.

REGISTER HERE

OUR PRESENTERS:  

Natalie Grigg head shotNatalie A. Grigg is the Supervising Partner in Woods Oviatt Gilman’s Default Servicing Department, overseeing staff and attorneys, while ensuring compliance with state and federal laws and regulations. Ms. Grigg represents lenders, investors, and servicers in residential mortgage foreclosures, bankruptcy actions, evictions, and related litigation throughout New York State.

Prior to joining Woods Oviatt, Ms. Grigg represented creditors and servicers in contested matters in Chapter 7, Chapter 11, and Chapter 13 bankruptcy proceedings throughout New York State. She has extensive experience with litigated matters within bankruptcy and foreclosure proceedings as well as commercial litigation.

Ms. Grigg received her Juris Doctorate from the University at Buffalo Law School in May 2002 with a concentration in Civil Litigation. She received a Bachelor of Arts degree in Psychology and Legal Studies in February 1999 from the State University of New York at Buffalo.

Bar Admissions
Ms. Grigg is admitted to practice in the State of New York. She also is admitted to practice in the United States District Court for the Western, Eastern, Northern, and Southern Districts of New York as well as the United States Bankruptcy Court for the Western, Eastern, Northern, and Southern Districts of New York.

 

Ryan Hertzel HeadshotRyan E. Hertzel specializes in judicial foreclosure and title clearance in the state of New York. She has been involved in the default servicing industry for more than a decade. Ms. Hertzel received her Juris Doctorate from Albany Law School in 2006 and immediately began working at Schiller & Knapp, LLP.  In 2015 she became a named partner and currently manages the firm’s Foreclosure Department. Ms. Hertzel has an in-depth knowledge and understanding of GSE rules and guidelines as well as FDCPA and CFPB requirements. Her major areas of practice include Creditor’s Rights; Foreclosure, Loss Mitigation and Title.

Bar Admissions
Ms. Hertzel is admitted to practice in the State of New York  and the United States District Court, Northern District of New York.

REGISTER for this informative Webinar TODAY!

FHFA Extends COVID-Related Loan Processing Flexibilities for Fannie Mae and Freddie Mac Customers

helm on June 11, 2020

The Federal Housing Finance Agency (FHFA) is extending several loan origination flexibilities currently offered by Fannie Mae and Freddie Mac (the Enterprises) designed to help borrowers during the COVID-19 national emergency. Flexibilities have subsequeently been extended until March 31, 2021:

  • Alternative appraisals on purchase and rate term refinance loans;
  • Alternative methods for verifying employment before loan closing;
  • Expanding the use of power of attorney and remote online notarizations to assist with loan closings; and
  • Authority to purchase mortgages in forbearance.
 

Join Mortgage Action Alliance

helm on May 26, 2020

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JOIN MAA TODAY!

New York is the financial capital of the country, and as such, we should have the highest number of MAA members.  Right now, New York is not the leader in MAA members. New York Real Estate finance professionals need to be engaged in a vital way that directly impacts the way you do business.  Whether you’re the CEO, CFO, CIO, Vice-President, Manager, Underwriter, Processor, Closer, QC, Servicer,  in the Secondary Market–YOUR VOICE SHOULD BE HEARD. YOU SHOULD JOIN MAA–TODAY!

Follow this link to complete a simple form.  It asks for your home address to identify your legislative representative, both at the Federal and State levels.

Speak directly with your members of Congress, state legislators and federal regulators about the impact of proposed legislation or regulations with the Mortgage Action Alliance, Inc.® (MAA). This voluntary, non-partisan and free nationwide grassroots lobbying network of real estate finance industry professionals, affiliated with the Mortgage Bankers Association (MBA), is dedicated to strengthening the industry’s voice and lobbying power in Washington, DC and state capitals across America.

Get involved with MAA to play an active role in how laws and regulations that affect the industry and consumers are created and carried out by lobbying and building relationships with policymakers. It only takes a moment to get started, and you do not have to be a member of MBA to enroll.

ACTIVE CALL TO ACTION EVENTS

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PREVIOUS CALL TO ACTION EVENTS

Urge Your Representative to Vote “YES” on Federal RON Bill

Last week, Representatives Kelly Armstrong (R-ND) and Madeleine Dean (D-PA) re-introduced the SECURE Notarization Act (H.R. 1059). As you may recall, this MBA-supported measure complements the 42-state remote online notarization (RON) laws by creating a set of minimum federal standards, while allowing individual states the flexibility and freedom to implement their own RON standards.

  • Why it matters: A direct result of MBA’s outreach and advocacy, H.R. 1059 requires tamper-evident technology in electronic notarizations and provides fraud prevention using multifactor authentication for identity proofing and audiovisual recording of the notarial act.
  • What’s next: A strong “Yes” vote in the House will help create a pathway for MBA and our coalition partners to build support for the pending Senate companion bill, while pushing for avenues to have the bill potentially considered and moved by the full Senate in the 118th Congress.
Federal Ron Bill

Last year, Senators Mark Warner (D-VA) and Kevin Cramer (R-ND) introduced the SECURE Notarization Act of 2021 (S. 1625). Co-sponsorship of this bill was a key ask during MBA’s National Advocacy Conference earlier this year. This bipartisan, bicameral legislation would allow notaries in all states to perform RON transactions.

Your advocacy matters! Just last week, the full House of Representatives passed its RON companion legislation, H.R. 3962 by an overwhelming vote of 336-90, signaling to the Senate that there is considerable interest to clear the bill in the upper chamber.

S. 1625 requires tamper-evident technology in electronic notarizations and provides fraud prevention using multifactor authentication for identity proofing and audiovisual recording of the notarial act. To date, forty-one states have enacted their own laws to enable the use of RON. The federal legislation would complement those existing state laws, while allowing individual states the flexibility and freedom to implement their own RON standards.

  • Why it matters: A direct result of MBA’s outreach and advocacy, S. 1625’s minimum standards for RON are consistent with those provided in the MBA-ALTA model state RON bill and the Mortgage Industry Standards Maintenance Organization (MISMO) RON Standards.
  • What’s next: Thanks to your help, the robust floor vote on July 26 in favor of H.R. 3962 achieved two key objectives: (1) the measure cleared the full House with strong momentum; and, (2) helped create a pathway for MBA and our coalition partners to garner further support for the measure’s Senate companion, S. 1625 – while pushing for avenues to have the bill potentially considered by the full Senate prior to the close of the 117th Congress.
Tell your Senators to Expand Affordable Homeownership Opportunities and Support Community Revitalization!

Senators Ben Cardin (D-MD) and Rob Portman (R-OH) recently introduced Bill S.98, the Neighborhood Homes Investment Act (NHIA), a bill that would create a new federal tax credit to fuel development. This bipartisan legislation would encourage the rehabilitation of single-family homes and potentially attract $100 billion in development activity to underserved rural and urban communities across the country.

The NHIA builds on the success of the Low-Income Housing and New Markets Tax Credits, which support affordable rental housing and economic development, respectively, but are not designed to build or rehabilitate owner-occupied homes. Bill S.98 would support the development of homes in rural communities struggling with the costs of new construction, as well as the rehabilitation of homes in blighted communities, where vacant homes depress property values and thwart broader revitalization efforts.