Yesterday afternoon, the New York State Department of Financial Services (“DFS”) issued an emergency regulation implementing the directives of New York State Executive Order 202.9 (the “Order,” available here), which requires New York-regulated financial institutions to grant loan forbearances to borrowers affected by the COVID-19 pandemic. The regulation (“Section 119") clarifies a number of ambiguities regarding the scope and breadth of the original Order’s applicability. In particular, as interpreted by the DFS in Section 119, Executive Order 202.9 does not apply to New York-licensed branches or agencies of foreign banks, or to transactions other than residential mortgages of properties located in New York, resolving questions raised in an earlier Milbank Client Alert addressing the Order.
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