NEW YORK CITY, NY—McGlinchey Stafford was engaged by the New York Mortgage Bankers’ Association (NYMBA) to lead efforts at drafting the group’s first-ever Amicus Brief, which was filed with the New York State Court of Appeals on Friday, Nov. 22.
NYMBA was moved to file the brief, drafted primarily by McGlinchey Stafford’s New York City Member (Partner) Brian McGrath, based on the potentially detrimental industry-wide effects of a lower court’s decision. In March, the Appellate Division of the Second Judicial Department of the State of New York ruled on the Bank of N.Y. Mellon v. Dieudonne case, which centers around mortgage acceleration and the state’s foreclosure statute of limitations. In its current form, the law negates contractual provisions permitting borrowers to reinstate their mortgages up until the time a final judgment is entered. This interpretation, the NYMBA argues, would have broad negative impacts not only on the mortgage lending industry, but ultimately on consumers seeking to qualify for mortgages and purchase homes in New York.