I recently attended a conference consisting of attendees from credit unions around New York State.  Many, were unaware, that on December 15, 2009, New York State Governor Paterson signed legislation allowing a larger population of distressed homeowners to benefit from consumer protection laws and foreclosure prevention opportunities previously available only
to borrowers of “high-cost,” “sub-prime” and “non-traditional” home loans; establish certain requirements for plaintiffs in foreclosure actions to maintain the foreclosed property; establish protections for tenants residing in foreclosed properties; and strengthen certain consumer protections to prevent distressed homeowners from falling prey to rescue scams.

New York is now the slowest state in the country at processing foreclosures; the average New York homeowner in foreclosure is 600 days behind on their loan, according to data from Lender Processing Services.

Contact me to discuss how the provisions of this legislation will impact credit unions and how to comply while managing the costs associated with these non-performing assets.