Authorizes the state of New York mortgage agency to restructure mortgages for dislocated workers and reservists called to active duty

1 Co-sponsor

• Ruben Diaz

Title of bill

An act to amend the public authorities law, in relation to authorizing the state of New York mortgage agency to restructure mortgage payments for dislocated workers and reservists called to active duty

Purpose or general idea of bill

The purpose of this legislation is to allow a dislocated worker and a reservist who has been called to active duty who have a SONYMA mortgage to refinance the conditions of payment to help ease his/her transitional period of unemployment or loss of income.

Summary of specific provisions

Amends section 2404 of the public Authorities Law by adding a new subdivision 25-a. This legislation authorizes SONYMA to restructure mortgage payments for dislocated workers who are registered with the jobs service division in the Department of Labor and members of a reserve component of the armed forces of the united States who have been called to active duty by the president of the united states. The dislocated worker and the reservist will be able to return to the bank in which the SONYMA mortgage was obtained and renegotiate the payment schedule in light of his/her unemployment status or loss of income while serving active duty. The restructuring agreement will be subject to the approval of SONYMA.

Justification

When a plant closing occurs, it creates a chain of problems for those previously employed in the plant. Dislocated workers, most of whom are in their middle years, are usually the main provider of their family's sustenance. Often, these individuals assumed debt in anticipation of a steady and secure income. Once they become dislocated, however, it usually means they must pay the same amount of money for bills with less available means, at least until they become reemployed at a similar wage. This pressure can often lead to family strain and the threat of foreclosure of the house from the bank. This is also true for members of the reserves who have been called to active duty. This legislation recognizes this predicament and will help to ease the pressure of dislocation and active duty call-up. By allowing dislocated workers and reservists who have a SONYMA mortgage to restructure payments, the State of New York is taking one step toward helping individuals make a strenuous, and sometimes grueling transition.

Prior legislative history

S.1763 of 2007 01/25/07 REFERRED TO CORPORATIONS, AUTHORITIES & COMMISSIONS

Fiscal implications for state and local government

None. SONYMA would receive the same amount for the mortgage. Payments would be less during the transitional period.

Effective date

This act shall take effect on the sixtieth day after it shall have become a law.