NY Extends Deadline for Transition to Final Mortgage Servicing Rules

On March 13, 2020, the New York Department of Financial Services (NYDFS) adopted an emergency measure amending the Final Mortgage Servicing Rules promulgated in December 2019.  Specifically, the measure will extend the transition deadline (which was originally March 17, 2020) to June 15, 2020. 

The recent emergency measure was adopted for several reasons.  The NYDFS noted that the changes required by the final rules are extensive and complex, and involve tasks like computer programming updates that largely need to be completed by third-party vendors (e.g., HELOC-related reporting, notice, and disclosure requirements) and revisions of procedures, training compliance staff, and providing information to consumers.  Additionally, the measure was adopted in light of the COVID-19 pandemic, as the NYDFS recognizes that institutions are channeling resources towards challenges associated with COVID-19. 

Prior to the pandemic, the New York Credit Union Association, the New York Mortgage Bankers Association, and the Mortgage Bankers Association had requested a nine-month extension. 

WBK’s previous coverage on the New York Final Mortgage Servicing Rules can be found here.