Paterson expected to sign new foreclosure protection legislation

New York is cracking down on mortgage fraud and beefing up foreclosure protections for homeowners and renters with a set of newly passed state mortgage laws. A bill passed last month by the State Legislature, now awaiting Governor David Paterson’s expected signature, says renters in foreclosed properties can no longer be evicted before being given 90 days’ notice, or, if it is longer, until the end of their lease. Before the new legislation, renters could be forced out after just 48 hours. And, to fight back against the spate of apartment buildings left in disrepair after foreclosure, lenders will now be responsible for keeping occupied buildings in decent shape. The legislation also expands the state’s loan modification program, which previously included only subprime borrowers, and prevents “distressed property consultants” from accepting the upfront fees that have contributed to scams in the past. [NYDN]