S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9592
 
                           I N  A S S E M B L Y
 
                             January 25, 2018
                                ___________
 
 Introduced  by  M.  of  A.  WEINSTEIN  --  read once and referred to the
   Committee on Judiciary
 
 AN ACT to amend the real property actions and proceedings  law  and  the
   civil  practice  law  and  rules,  in  relation  to foreclosure upon a
   reverse mortgage
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1. Paragraph (a) of subdivision 6 of section 1304 of the real
 property 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)  (1)  "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.
   (2) A HOME LOAN SHALL INCLUDE A LOAN SECURED  BY  A  REVERSE  MORTGAGE
 THAT  MEETS THE REQUIREMENTS OF CLAUSES (I) THROUGH (IV) OF SUBPARAGRAPH
 ONE OF THIS PARAGRAPH.
   § 2. Subdivision (a) of rule 3408 of the civil practice law and rules,
 as amended by section 3 of part Q of chapter 73 of the laws of 2016,  is
 amended to read as follows:
   (a)  [In]  1. EXCEPT AS PROVIDED IN PARAGRAPH TWO OF THIS SUBDIVISION,
 IN any residential foreclosure action involving a  high-cost  home  loan
 consummated  between  January  first,  two  thousand three and September
 first, two thousand eight, or a subprime or nontraditional home loan, as
 those terms are defined under section thirteen hundred four of the  real
 property  actions and proceedings law, in which the defendant is a resi-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD13316-01-7

 A. 9592                             2
 
 dent of the property subject to foreclosure,  the  court  shall  hold  a
 mandatory  conference  within  sixty  days  after the date when proof of
 service is filed with the county clerk, or on such adjourned date as has
 been  agreed  to  by  the parties, for the purpose of holding settlement
 discussions pertaining to the relative rights  and  obligations  of  the
 parties  under  the  mortgage loan documents, including, but not limited
 to: [1.] (I) determining whether the parties can reach a mutually agree-
 able resolution to help the defendant avoid losing his or her home,  and
 evaluating  the potential for a resolution in which payment schedules or
 amounts may be modified or  other  workout  options  may  be  agreed  to
 including,  but not limited to, a loan modification, short sale, deed in
 lieu of foreclosure, or any other loss mitigation option; or  [2.]  (II)
 whatever other purposes the court deems appropriate.
   2.  (I)  PARAGRAPH  ONE  OF THIS SUBDIVISION SHALL NOT APPLY TO A HOME
 LOAN SECURED BY A REVERSE MORTGAGE WHERE THE DEFAULT  WAS  TRIGGERED  BY
 THE DEATH OF THE LAST SURVIVING BORROWER UNLESS:
   (A) THE LAST SURVIVING BORROWER'S SPOUSE, IF ANY, IS A RESIDENT OF THE
 PROPERTY SUBJECT TO FORECLOSURE; OR
   (B)  THE  LAST  SURVIVING  BORROWER'S  SUCCESSOR  IN INTEREST, WHO, BY
 BEQUEST OR THROUGH INTESTACY, OWNS, OR HAS A CLAIM TO THE  OWNERSHIP  OF
 THE  PROPERTY  SUBJECT  TO  FORECLOSURE,  AND WHO WAS A RESIDENT OF SUCH
 PROPERTY AT THE TIME OF THE DEATH OF SUCH LAST SURVIVING BORROWER.
   (II) THE SUPERINTENDENT OF  FINANCIAL  SERVICES  MAY  PROMULGATE  SUCH
 RULES AND REGULATIONS AS HE OR SHE SHALL DEEM NECESSARY TO IMPLEMENT THE
 PROVISIONS OF THIS PARAGRAPH.
   §  3.  This  act  shall take effect immediately and shall be deemed to
 have been in full force and effect on and after April 20, 2017; provided
 that:
   (a) the amendments to subdivision 6 of section 1304 of the real  prop-
 erty actions and proceedings law, made by section one of this act, shall
 not  affect the expiration and reversion of such subdivision pursuant to
 subdivision a of section 25 of chapter 507  of  the  laws  of  2009,  as
 amended, and shall be deemed repealed therewith; and
   (b)  the amendments to subdivision (a) of rule 3408 of the civil prac-
 tice law and rules, made by section two of this act, shall  take  effect
 on  the same date and in the same manner as section 3 of part Q of chap-
 ter 73 of the laws of 2016 takes effect.