NY State Senate Bill 2015-S8177

Archive: Last Bill Status - In Senate Committee Rules Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Aug 12, 2016	referred to rules

2015-S8177 (ACTIVE) - Details

See Assembly Version of this Bill:: A10745
Current Committee:: Senate Rules
Law Section:: Real Property Actions and Proceedings Law
Laws Affected:: Amd §1304, RPAP L
Versions Introduced in 2017-2018 Legislative Session:: S1992, A1053, A1266

2015-S8177 (ACTIVE) - Summary

Relates to required prior notices; includes reverse mortgage transactions in the definition of home loan.

2015-S8177 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S8177

 TITLE OF BILL :  An act to amend the real property actions and
proceedings law, in relation to required prior notices

 SUMMARY OF PROVISIONS :

Section 1 amends paragraph (a) of subdivision 5 of section 1304 of the
Real Property Actions and Proceedings Law (RPAPL), as amended by
chapter 507 of 2009, to include reverse mortgage transactions in the
definition of Home loans for purposes of residential foreclosures and
related notices.

Sections 2 and 3 amend paragraphs (a) and (b) of subdivision 6 of
section 1304 of RPAPL, as amended by part Q of chapter 73 of 2016, to
include reverse mortgage transactions in the definition of Home loans
for purposes of residential foreclosures and related notices.

Section 4: Sets an immediate effective date.

 JUSTIFICATION :

Reverse mortgages are not currently included in many important
protections afforded residential foreclosures, including receipt of
pre-foreclosure notices and entitlement to mandatory foreclosure
settlement conferences.

Practitioners have been experiencing a rise in reverse mortgage
foreclosures. Recent media coverage has confirmed this uptick in
residential foreclosures against homeowners with reverse mortgages.
The coverage also highlights the exploitation by lenders of the
vulnerabilities of the elderly. See "Taking out a reverse mortgage
ruined my life" New York Post, July 23, 2016; and "New York Launches
Reverse Mortgage Probe" New York Post, July 29, 2016.

Reverse mortgages are only available to senior citizens, and without
the equal protections of our laws, these financially vulnerable
homeowners have little recourse when faced with foreclosures filed by
their lenders. All homeowners should have the same protections of New
York's foreclosure laws, including those with reverse mortgages. This
measure would fill the current gap in our laws.

 LEGISLATIVE HISTORY :

New Bill, 2016.

 FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS :

None.

 EFFECTIVE DATE :
Immediately, with amendments to take effect on the same date as
amendments to the related RPAPL subdivision take effect pursuant to
section 6 of Part Q of chapter 73 of the laws of 2016.

2015-S8177 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  8177

                            I N  S E N A T E

                             August 12, 2016
                               ___________

Introduced  by  Sen.  KLEIN  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

AN ACT to amend the  real  property  actions  and  proceedings  law,  in
  relation to required prior notices

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Paragraph (a) of subdivision 5 of section 1304 of the  real
property  actions  and proceedings law, as amended by chapter 507 of the
laws of 2009, is amended to read as follows:
  (a) "Home loan" means a  loan,  including  an  open-end  credit  plan,
[other than a reverse mortgage transaction,] in which:
  (i) The borrower is a natural person;
  (ii)  The  debt  is  incurred  by the borrower primarily for personal,
family, or household purposes;
  (iii) The loan is secured by a mortgage  or  deed  of  trust  on  real
estate improved by a one to four family dwelling, or a condominium unit,
in  either  case,  used  or occupied, or intended to be used or occupied
wholly or partly, as the home or residence of one or  more  persons  and
which is or will be occupied by the borrower as the borrower's principal
dwelling; and
  (iv) The property is located in this state.
  S  2. Paragraph (a) of subdivision 6 of section 1304 of the real prop-
erty actions and proceedings law, as amended by section 6 of part  Q  of
chapter 73 of the laws of 2016, is amended to read as follows:
  (a)  "Home  loan"  means  a  loan,  including an open-end credit plan,
[other than a reverse mortgage transaction,] in which:
  (i) The borrower is a natural person;
  (ii) The debt is incurred by  the  borrower  primarily  for  personal,
family, or household purposes;
  (iii)  The  loan  is  secured  by  a mortgage or deed of trust on real
estate improved by a one to four family dwelling, or a condominium unit,
in either case, used or occupied, or intended to  be  used  or  occupied
wholly  or  partly,  as the home or residence of one or more persons and

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15978-01-6

S. 8177                             2

which is or will be occupied by the borrower as the borrower's principal
dwelling; and
  (iv) The property is located in this state.
  S  3. Paragraph (b) of subdivision 6 of section 1304 of the real prop-
erty actions and proceedings law, as amended by section 7 of part  Q  of
chapter 73 of the laws of 2016, is amended to read as follows:
  (b)  "Home loan" means a home loan, including an open-end credit plan,
[other than a reverse mortgage transaction,] in which:
  (i) The principal amount of the loan at origination did not exceed the
conforming loan size that was in existence at the  time  of  origination
for  a  comparable dwelling as established by the federal national mort-
gage association;
  (ii) The borrower is a natural person;
  (iii) The debt is incurred by the  borrower  primarily  for  personal,
family, or household purposes;
  (iv) The loan is secured by a mortgage or deed of trust on real estate
upon  which  there  is  located or there is to be located a structure or
structures intended principally for occupancy of from one to four  fami-
lies  which  is  or  will  be occupied by the borrower as the borrower's
principal dwelling; and
  (v) The property is located in this state.
  S 4. This act shall take effect immediately; provided, however, that
  (a) the amendments to subdivision 6 of section 1304 of the real  prop-
erty  actions  and proceedings law made by section two of this act shall
take effect on the same date and in the same manner as section 6 of part
Q of chapter 73 of the laws of 2016 takes effect; and
  (b) the amendments to subdivision 6 of section 1304 of the real  prop-
erty  actions  and proceedings law made by section two of this act shall
be subject to the expiration and reversion of such subdivision  pursuant
to  subdivision  a  of section 25 of chapter 507 of the laws of 2009, as
amended, when upon such date the provisions of section three of this act
shall take effect.

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Senate Bill S8177

Sponsored By

Archive: Last Bill Status - In Senate Committee Rules Committee

2015-S8177 (ACTIVE) - Details

2015-S8177 (ACTIVE) - Summary

2015-S8177 (ACTIVE) - Sponsor Memo

2015-S8177 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S8177

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Sponsored By

Jeffrey D. Klein

Archive: Last Bill Status - In Senate Committee Rules Committee

2015-S8177 (ACTIVE) - Details

2015-S8177 (ACTIVE) - Summary

2015-S8177 (ACTIVE) - Sponsor Memo

2015-S8177 (ACTIVE) - Bill Text download pdf

Comments