- By New York State Governor's Office
Governor Andrew M. Cuomo signed legislation (S.6388/A.7788) Wednesday extending the driver license suspension process for two years to further enforce child support obligations. This highly successful enforcement process allows the child support program to identify parents with a driver's license who fail to pay child support and then notify them that their driving privileges will be suspended unless child support payments are made. The bill will extend this important law through August 31, 2021.
"Child support is critical to ensuring kids of separated parents have the resources they need for a healthy and stable upbringing," Cuomo said. "By extending this measure, we will help hold accountable any adult who fails to meet this basic obligation by suspending their driver's license until they step up and address the problem."
Cuomo also signed three measures enacting a package of sweeping homeowner protections. The legislation includes enhancing consumer protection measures and closing loopholes to prevent deed fraud and mortgage scams (A.5615/S.1688); requiring banks to continue paying homeowner's association fees on zombie properties that are part of a co-op (S.4182/A.1800); and safeguarding homeowners by reforming the obligations of banks and financial institutions during sale of a mortgage (A.92A/S.5017A).
Preventing Deed Fraud and Mortgage Scams (A.5615/S.1688)
This law provides better protections for homeowners whose homes are either in default or in foreclosure. It closes loopholes to prevent deed fraud and mortgage scams, increasing the likelihood that a victim will have the opportunity to seek recovery in court.
Requiring Payment of Homeowners' Association Fees (S.4182/A.1800)
This measure requires banks or mortgage holders of vacant and abandoned residential properties to continue paying homeowners' association fees or cooperative fees as needed to maintain a property when it has been abandoned during the foreclosure process. This will help to ensure properties do not become dilapidated before the foreclosure is finalized.
Reforming Bank Obligations During Sale of Mortgage (A.92A/S.5017A)
Consumers who are looking at loan modification options are often in difficult financial situations and are acting to save their homes from foreclosure. The process can be stressful and complicated, and sales or transfers of their loans in the midst of this process can be confusing and additionally stressful. This bill will provide consumers with certain protections if their loan is sold or transferred during the modification process. First, if the loan is transferred during the application process for a loan modification, the original holder of the loan must provide the consumer with a list of all the application documents provided to the buyer or transferee. Second, the bill ensures that that if the loan is sold or transferred after a homeowner has been approved for a modification of their mortgage that the subsequent mortgage servicer honors the terms and conditions of the approval.