New York Law Blog

Despite the new law in effect that requires lenders to inform homeowners that their mortgage is about to be foreclosed on, some in the industry believe it still may not be enough to save those who are in trouble. Among the areas of New York City that are among the hardest hit, Staten Island residents are seeing foreclosure rates “354 percent higher than Brooklyn, and 533 percent higher than the Bronx.” Now homeowners who are on the verge of being foreclosed on by banks who offered bad subprime loans in the last few years are seeking legal counsel to ensure that the mortgage lending reform law is on their side.

It was enough to prompt him [attorney Michael Menicucci] to begin a letter-writing campaign to state legislators and the New York Banking Department, which earlier this month announced a new mortgage lending reform law. The law requires lenders and loan servicers to send a 90-day preforeclosure notice to troubled homeowners, giving them a chance to consult with a housing counselor and seek a loan settlement before foreclosure begins. It also calls for a mandatory settlement conference to take place within 60 days after a foreclosure starts.

But Menicucci said the law does not guarantee settlements or set specific time frames for negotiating loan modifications or short sales. The latter is when the bank agrees to take less than the mortgage owed in order to avoid foreclosure. In return, the homeowners avoid the black stain losing a house leaves on their credit.

However, what exactly does the law entail? A statement by the New York State Banking Department aims to break the law down:

A spokeswoman for the state Banking Department said the new state law encourages the lender to act in good faith and work with the homeowner. The law also establishes more consumer protections for subprime loans and minimum underwriting standards, and it classifies mortgage fraud as a crime.

New York state’s Department of Labor has recently changed the law regarding private employers and their requirements when it comes to layoffs and plant closings. Full text from the Buffalo Business First:

A new law in New York state now requires private employers with 50 or more workers to notify employees and the Department of Labor at least 90 days prior to a plant closing or mass layoff.

The legislation, known as the State Worker Adjustment and Retraining Notification (WARN) Act, has been signed into law by Gov. David Paterson. Proponents say the need for a stringent law at the state level comes after a number of companies have closed their doors in recent years and gave their workers little or no prior notification.

The measure will toughen the federal WARN law, which applies to companies that employ 100 or more workers and requires only 60 days notice to these workers. Businesses that fail to file a WARN notice in the allotted time period will be subject to penalties of up to $500 per day for each violation. The new law also gives the state Labor Commissioner the authority to order relief, including back wages and unpaid medical benefits, for employees who don’t receive the required notice.

“For too long, workers in New York, given no notice in the face of immediate layoffs, have been unintentional victims of a federal law with limited enforcement provisions,” said Labor Commissioner Patricia Smith.

The federal law, officials said, also lacks an administrative enforcement mechanism, which requires workers facing job loss to sue their employers privately. The new state law will close this loophole, which has allowed employers who fail to provide workers with a timely WARN notice to escape liability for such violations.

Protections for the average employee in New York state will help to ensure that all involved can work in comfort and know that they are protected against immediate layoffs.

We get a lot of people who come to our firm for various reasons. While in many cases we can meet their needs for situations involving accidents, injuries, malpractice, negligence, worker’s compensation and much more, there are some instances like immigration and criminal cases where other existing organizations are best suited for them. Below is a list of the most common referrals we provide.

• Studentjobs.gov Career Center
• DHS: Immigration
• Free Legal Services Providers for New York
• Guide to Attorney Disciplinary Procedures in New York State
• Mexican Non Profit Organizations
• New York City Civil Court / Small Claims
• New York City Family Court
• New York Lemon Law
• New York State Department of Family Assistance
• New York State Department of Health
• Social Security Online
• Teen & Parent Crisis Hotline