New York passed a bill requiring banks and trust companies to provide a written notification prior to establishing an alternative payment schedule for an existing loan. Under the bill, a bank or trust company that permits a borrower to establish an alternative payment schedule for an existing loan must provide written notification that accepting the alternative payment schedule may have a negative impact on the borrower’s credit score or rating. The notification must be provided at the time the loan application is made, at the time the loan is granted, and at the time the borrower requests that an alternative payment be established for a loan (but prior to the actual establishment of an alternative payment schedule.). The bill becomes effective February 1, 2022.
Click to view the NY SB 1566: https://www.tenaco.com/wp-content/uploads/2021/11/NY-SB-1566-11-04-21.pdf
