New York Attorney General Letitia James is warning mortgage servicers that she’ll be aggressive about enforcing rules around the distribution of pandemic-related mortgage relief as many distressed borrowers exit forbearance plans.
In a letter sent to the industry days after she dropped out of the governor’s race and decided to run again for her current post, James warned that while the industry has been responsive to some complaints escalated to her office, she still has compliance concerns.
“My office is currently investigating whether certain servicers of privately-owned mortgages have failed to offer homeowners the forbearance relief and post-forbearance modifications required,” James said in the letter.
While private loans are exempt from some federal relief requirements, the Empire State has
“By mandating such parity, New York has made it clear that it will not tolerate any unfair disparity,” she said.
James also announced that her office will have a role in overseeing the distribution of state money from the
How mortgage companies communicate with borrowers on all aspects of loss mitigation will be watched closely, she added.
“I will continue to monitor consumer complaints and industry metrics to make sure that New York homeowners are not deterred from seeking relief by long hold times, dropped calls, or other communications problems, including a lack of resources for homeowners with
