How Can I Sign New York Banking Forbearance Agreement

How can i industry sign banking new york forbearance agreement

hey everybody merry christmas happy holidays from us here over at gerasi as always we're always trying to be on the forefront of legislation here for you we've got some interesting news that's coming out of the great state of new york the great state of new york is being a copycat to the great state of california we're going to talk about that real fast here so first it's new york s05470 we sent out a blast by email it's also on our website we've got all the details about this bill let me tell you really briefly kind of what it's all about so first the bill has passed the legislative house it is waiting for a signature by governor cuomo uh if governor cuomo does sign this bill it will go into effect 180 days later so let's talk about what does this affect well first it affects commercial loans so the reason why we have not been as aggressive about this bill as we are with other bills is that even though it affects commercial loans or business purpose loans as you probably refer to them as is that it does not affect loans which are secured by real property so if you've got a real estate secured loan which most people in our industry do these sorts of loans are not going to be covered by this bill who will it affect so if you make unsecured loans in the state of new york or if you make loans that are solely secured by personal property probably the biggest example in the people that will feel this one is people are private lenders who make factoring loans um or those that are involved in equipment financing those are probably the two buckets of people that will affect the most uh in this bill um and so here are a little bit of the exceptions and exemptions so first is that it does not it only applies to transactions which are less than five hundred thousand dollars so if you're making a loan greater than five hundred thousand dollars not going to apply to you and it also exempts credit unions and banks but not private lenders so if you're a private lender it will affect you again only if it's going to be secured by personal property or there's no security behind the loan flip over to my handy dandy other side of this little board here and i will show you some more about this bill all right so assuming you're covered by this bill let's talk a little bit about how it's going to affect you so first is that for those of you that are in the real estate industry you're probably similar or you're probably used to seeing loan estimates and closing disclosures the old gfp type deal and so those disclosures basically explain the rate and term the apr that kind of stuff so it's really a disclosure-based bill so if you make these sorts of loans you now have to provide additional disclosures assuming it gets signed into law so what is the additional disclosure so it's the amount borrowed and the amount dispersed if it's any different your finance charges your apr how much your total how much the total repayment amount is after the end of the cycle how are you calculating payments what's your collateral there's other details in there as well but these are kind of the high level points of what you need to be concerned with it creates a fine regime so if you don't comply with this you don't provide these disclosures and you're supposed to provide these disclosures there's a fine two thousand dollars to five thousand dollars per transaction so pretty steep fines the reason why we're concerned about it while we're covering it here at aapl and jurassi is that this mimics i mean almost to the t of what just happened in california a couple of years ago with rsb 1235 this is why we are so aggressive with legislation when it comes to private lenders because we know that states love to look at other states um whenever they pass these sorts of bills and this is exactly what just happened in new york and so in this situation our primary concern is that we are taking what is clearly a commercial transaction and applying basically a consumer uh disclosure regime on on a commercial transaction so probably won't affect most of you out there you're probably making real estate secured loans nothing to lose sleep over here but i would be concerned about the copycat nature of what just happened here hopefully governor cuomo doesn't sign the bill obviously we'll give you more details if he does and we'll continue to watch over uh these bills and other bills throughout the country hope all of you have a great holiday season and a safe new year take care everybody