State regulator proposes amendment to shorten New York's long home foreclosure process

Markets Associated Press

New York's top bank regulator proposes amending state law to shorten the foreclosure process for homes with delinquent mortgages.

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Department of Financial Services Superintendent Ben Lawsky, addressing mortgage bankers Tuesday, says New York's process averages 900 days from the date of filing to the sale of the property, nearly double the national average.

In the foreclosure crisis from the 2008 recession and burst housing bubble, New York law was amended to require a settlement conference between the lender and homeowner to "negotiate in good faith."

Lawsky proposes specifying in law what that term means, saying conferences are frequently plagued by delays that worsen homeowner prospects for keeping their homes.

A report from his department shows a record 115,000 settlement conferences conducted last year.

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Online:

Foreclosure report:

http://www.dfs.ny.gov/reportpub/fore_proc_report_052015.pdf