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Client Alert: Expiration of New York’s State of Emergency and the Impact Upon Mortgagees Print PDF


On June 24, 2021, New York Governor Andrew Cuomo issued Executive Order 210 rescinding New York’s state of emergency set forth in Executive Orders 202 through 202.111. As a result, effective June 25, 2021, any foreclosure and eviction moratoriums that were based on the Governor’s executive orders are now rescinded. 

Accordingly, Executive Order 202.28 (and its extension through multiple subsequent executive orders) will no longer act as a bar on the commencement of commercial foreclosures and evictions.

This Order had previously barred such foreclosures and evictions “for nonpayment of such mortgage, owned or rented by someone that is eligible for unemployment insurance or benefits under state or federal law or otherwise facing financial hardship due to the COVID-19 pandemic.” Executive Order 202.28 also applied to residential mortgages, but was allowed to lapse as it pertained thereto upon passage of the Emergency Eviction and Foreclosure Prevention Act of 2020 (“EEFPA”) on December 28, 2020. 

Further, Executive Order 210 eliminates any perceived or actual inconsistencies between the Governor’s prior executive orders and New York’s COVID-19 Emergency Protect Our Small Businesses Act of 2021 (the “Act”). More specifically, lenders and servicers will only need to focus on the foreclosure and eviction commencement restrictions outlined in the Act (e.g., service of a notice of hardship declarations for defendants who qualify), and will no longer need to be concerned as to whether their commencement efforts comply with one of the many executive orders previously issued regarding foreclosures and evictions.

Additionally, with the COVID-19 state of emergency ending, Banking Law 9-x is also expiring. Banking Law 9-x required New York regulated banking organizations and servicers to offer, during the “covered period”, 180-day forbearances to qualified mortgagors, with the mortgagor being entitled to an additional 180-day extension.

The “covered period” under Banking Law 9-x was from March 7, 2020 “until the date on which none of the provisions that closed or otherwise restricted … businesses or places of public accommodation, or [restricted] gatherings of individuals of any size [as set forth in the Governor’s COVID-19 related executive orders] continue to apply.” Given that the Governor has now rescinded those orders, servicers subject to Banking Law 9-x are no longer required to offer new forbearances under Banking Law 9-x

Servicers and lenders are, of course, still required to abide by federal foreclosure restrictions where applicable.

Here is the link to EO 210.

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