Elected officials propose mortgage relief

Local elected officials are proposing measures to help residents who are struggling to make mortgage payments as a result of the coronavirus pandemic.

As part of the federal Coronavirus Aid, Relief and Economic Security Act, homeowners can delay payments on federally-backed mortgages for up to 180 days, and at the state level, Gov. Andrew Cuomo signed an executive order at the end of March that grants forbearance for 90 days. At the end of the grace period, people will have to make up the missed payments, while they are still dealing with the immediate financial effects of the pandemic.

To solve this issue, State Sens. Brian Kavanagh and Todd Kaminsky introduced a bill that gives homeowners the ability to extend the life of their mortgage by however long their payments were in forbearance. So, if a mortgage was scheduled to end in July 2040, and the borrower forgoes three months of payment during the pandemic, the mortgage payments would be extended to September 2040.

Congresswoman Kathleen Rice said she would also include provisions in the next federal stimulus bill to expand forbearance relief to include those who do not have federally-owned or -backed mortgages, and to prohibit services from demanding a full, one-time lump sum payment after the forbearance period ends.

“I’ve heard from countless homeowners who are struggling to make mortgage payments due to the COVID-19 pandemic,” Rice explained. “During this unprecedented crisis, Long Islanders should be solely focused on keeping their families safe and healthy, not worried about losing their homes.”

According to a recent study, a home costs Nassau County residents the average of 65 percent of their income. Lawmakers argue that those figures prove that there is a need for increased protections on both the federal and state levels to ensure a financially viable future for people, while avoiding another housing collapse, the lawmakers argued.

“Our priority is protecting the people of our districts and making sure that they come out of this crisis healthy and financially secure,” Kaminsky said. “This bill will help ensure that outcome and provide real relief for homeowners.”

“Allowing homeowners to postpone their payments to the end of their loan will relieve the financial stress that many are feeling,” Kavanagh added. “This legislation is part of our larger effort to develop solutions that will ease the burden by ensuring that New Yorkers’ homes — whether they are renters or homeowners — remain secure. It will contribute to a rapid recovery once the public health crisis passes.”

— Melissa Koenig