Budget Amendment ID: FY2021-S4-362-R1

Redraft ECO 362

Mortgage Forbearance

Mr. Moore, Ms. DiZoglio, Ms. Rausch, Mr. Eldridge, Ms. Chang-Diaz, Ms. Jehlen, Messrs. Welch, Lesser, Collins, Feeney and Boncore, Ms. Moran, Messrs. Tarr and Montigny moved that the proposed new text be amended by inserting after section ____ the following 2 sections:- 

"SECTION XX.  Section 5 of chapter 65 of the acts of 2020 is hereby amended by striking out subsection (b) and inserting in place thereof the following subsection:-

(b)  A creditor or mortgagee shall grant a forbearance to a mortgagor of a mortgage loan for residential property as defined in said section 35B of said chapter 244; for residential property owned by a nonprofit entity or an affiliate or agent of the non-profit entity or a mortgagor, including affiliates and agents, that owns 15 or fewer residential apartments or a small business premises unit if the mortgagor submits a request to the mortgagor’s servicer affirming that the mortgagor has experienced a financial impact from COVID-19. The request may be made in any form, written or oral, and the forbearance shall be granted regardless of the mortgagor’s delinquency status. The forbearance shall last 180 days, although at the mortgagor’s request, the period of forbearance may begin in an increment shorter than 180 days and then extended at the mortgagor’s request. The forbearance shall be extended for an additional 180 days at the mortgagor’s request. Fees, penalties or interest beyond the amounts scheduled and calculated as if the mortgagor made all contractual payments on time and in full under the terms of the mortgage contract shall not accrue during the period of forbearance granted under this subsection. A payment subject to the forbearance, including any escrow payments required to be paid in the mortgage contract, shall be added to the end of the term of the loan unless otherwise agreed to by the mortgagor and mortgagee. Nothing in this subsection shall prohibit a mortgagor and mortgagee from entering into an alternative payment agreement for the payments subject to the forbearance. The mortgagee shall not furnish negative mortgage payment information to a consumer reporting agency related to mortgage payments subject to forbearance under this act.

SECTION XX.  Said chapter 65 is hereby further amended by striking out section 8 and inserting in place thereof the following section:-

SECTION 8.  Notwithstanding any general or special law to the contrary, a creditor or mortgagee shall not be required to grant a forbearance to a mortgagor of a mortgage loan for a residential property under subsection (b) of section 5 if the mortgagor’s request for such forbearance is made after the COVID-19 emergency declaration has been lifted."