COVID-19 Related Relief for Borrowers and Bank Customers
Governor's Executive Order and New York Department of Financial Services' Emergency Regulation regarding COVID-19 Related Relief
On March 24, 2020, pursuant to Governor Andrew M. Cuomo’s Executive Order No. 202.9, the New York Department of Financial Services (DFS) issued an emergency regulation requiring that New York State regulated financial institutions provide residential mortgage forbearance on property located in New York for 90 days to anyone residing in New York who demonstrates financial hardship as a result of the COVID-19 pandemic. The regulation also required that New York banking organizations eliminate fees charged for the use of ATMs, overdraft fees, and credit card late payment fees for anyone who demonstrates financial hardship as a result of the COVID-19 pandemic. Both requirements are subject to the safety and soundness requirements of the regulated institutions and organizations.
Notably, the DFS regulation does not limit regulated institutions to offering the referenced types of relief – to the contrary, the DFS has encouraged regulated institutions and organizations to assist those impacted by the COVID-19 pandemic in any additional manner they deem appropriate.
The referenced DFS regulation is limited to the time frame set forth in Executive order No. 202.9 and can be found at Part 119 of Title 3 of the Official Compilation of Codes, Rules and Regulations of the State of New York.