Foreclosure Bill Stalls in Senate

Albany Times Union (NY) (05/15/08); Churchill, Chris
In New York, a tepid response from GOP lawmakers could prevent the state Senate from voting on legislation passed by the Assembly that would impose a one-year moratorium on foreclosures in order to allow struggling borrowers to receive counseling. New York Bankers Association President and CEO Michael Smith says the moratorium would mean a more than two-year foreclosure process, which already averages 445 days in the state. He believes borrowers with good credit could face stricter lending restrictions as a result. Mortgage Bankers Association Chairman Kieran Quinn, CMB, adds that lenders could stop doing business in the state if the bill is passed. Meanwhile, New York Gov. David Paterson (D) is pushing for legislation that would beef up the state anti-predatory lending law, require lenders to ensure borrowers have "a reasonable ability to repay" and force mortgage services to register with the state.