A branch of the onslaught of borrower protective legislation is a stealth component lurking in the Banking Department Regulations, NYCRR §419.11(h).1 Part 419 contains fourteen subsections with yet further subsections of those relating to mortgage servicing and its definitions.

Of particular concern here is Section 419.11, entitled “Residential mortgage loan delinquencies and loss mitigation efforts.” Subsection (h) reads as follows:

Waiver of legal claims and defenses. A Servicer shall not require a homeowner to waive legal claims and defenses as a condition of a loan modification, forbearance or repayment plan.