The New York Foreclosure Abuse Prevention Act (FAPA): Potential Impact on Real Estate Finance
March 13, 2023
On December 30, 2022, Governor Hochul signed the New York Foreclosure Abuse Prevention Act (“FAPA”) into law, with immediate effect. FAPA not only applies to mortgage foreclosures sought in 2023 and beyond, it also applies retroactively to all mortgage foreclosure actions “in which a final judgment of foreclosure and sale has not been enforced” at the time FAPA was promulgated. In addition, while the context of the debate around FAPA prior to its adoption appeared to focus on homeowner and consumer protection, the language of the act is broad enough to encompass both residential and commercial mortgages. FAPA’s coverage could therefore have a significant impact on the real estate financing landscape in New York.1
Dechert continues to monitor new developments regarding FAPA and recently published an update to this initial analysis. We will issue further updates as legal challenges and other news develop.
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