Housing Reforms To Become Law In NY; Will Require Mandatory Settlement Conferences Between Banks, Certain Subprime Borrowers In Foreclosure

In Albany, New York, the Rochester Democrat & Chronicle reports:

• Gov. David Paterson is set to sign legislation today that housing advocates say will be a major step toward easing the home foreclosure crisis in New York state. The package of reforms is expected to provide better protection for homeowners facing foreclosure and reduce the predatory lending practices that often lead people to buy homes they can't afford.

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• Among the more critical elements of the law is a 90-day waiting period before lenders begin foreclosure proceedings on a home. The wait time allows homeowners and banks to seek remedies other than foreclosure, Paterson has said. That piece of the law will take effect Sept. 1. The law will also require mandatory settlement conferences between banks and homeowners who have certain types of subprime loans. Already New York has the longest waiting period in the country, with the foreclosure process taking about 440 days to complete.

For more, see Paterson to sign housing crisis bill (Law would help those facing foreclosure, protect borrowers).

Story update (8-5-08 - 2:15 pm):

• Gov. Paterson Signs Comprehensive Reforms To Address Foreclosure Crisis.