ALBANY - New York's proposed foreclosure freeze is getting a cold reception in the state Senate, to the chagrin of some Democrats.

The bill - a response to rising foreclosure rates statewide - sailed through the Assembly last week, but seems to have shallow support among Republican leaders in the Senate, where it may not go to a vote. Frustrated Senate Democrats on Wednesday held a news conference to demand that Senate Majority Leader Joseph L. Bruno allow a vote on the measure. They called the freeze a step that could keep thousands of New Yorkers in their homes by allowing them time to talk to housing experts and negotiate with lenders.

"A moratorium gives the chance for the counseling process to take place," said Sen. Neil Breslin, D-Bethlehem.

The banking industry strongly objects to the freeze, in part because the foreclosure process in New York already includes consumer protections and, at an average of 445 days, is the nation's longest.

An additional one-year moratorium would extend the foreclosure process to over two years, said Michael Smith, president and CEO of the New York Bankers Association.

And that could bring consequences - including a tightening of borrowing requirements even for New Yorkers with strong credit.

"A moratorium would not solve the problem today and would seriously hurt the credit market for the future," Smith said.

Kieran Quinn, chairman of the national Mortgage Bankers Association, agreed, warning that the moratorium might cause some lenders to avoid New York.

Gov. David Paterson supports foreclosure legislation that does not include a moratorium. Instead, it strengthens the state's anti-predatory-lending law, establishes a "reasonable ability to repay" standard for loans, and requires the registration of mortgage loan servicers, among other steps.

A spokesman for Bruno would say only that the senator will focus on Paterson's bill as the way to address foreclosure and mortgage problems - suggesting dim prospects for the foreclosure moratorium.

Senate Democrats pushing for the moratorium also said they support Paterson's legislation, but said it is designed only to prevent future problems and would do little to help homeowners who already are in trouble.

They said the need for the moratorium is urgent, because thousands of adjustable-rate mortgages are scheduled to reset this year, demanding higher payments from homeowners.

Chris Churchill can be reached at 454-5442 or by e-mail at cchurchill@timesunion.com

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