U.S. Rep. Kathleen Rice (D-NY4), state Sen. Todd Kaminsky (D-Long Beach) and New York State Senate Housing Chair Brian Kavanagh (D-Manhattan) are proposing a plan to help struggling homeowners during the COVID-19 pandemic. Together, the three have developed a bill that would give homeowners the ability to extend the life of their mortgage by the amount of time that their payments were in forbearance. The legislators say it will provide immediate relief and allow people to pay lenders in a more manageble fashion.
"Our goal as policymakers should be to offer homeowners as many flexible options as possible to suit each individual family's needs," the trio of lawmakers wrote in a Newsday editorial
on April 20. "This [proposal] allows homeowners to catch up on their payments at their convenience, without fear of foreclosure actions or damage to their credit. For many, it could be the difference between losing their homes and keeping them."
Rice is supportive of including provisions in the next federal stimulus package to broaden forbearance relief for all homeowners and multifamily property owners to include those who do not have federally owned or backed mortgages and to prohibit servicers from demanding a full, one-time lump sum payment after the forbearance period..