Senate Bill S4408

Signed By Governor
2019-2020 Legislative Session

Requires lenders foreclosing upon home equity conversion reverse mortgages to provide notice to the department of financial services and the mortgagors

download bill text pdf

Sponsored By

Archive: Last Bill Status - Signed by Governor

  • 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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2019-S4408 (ACTIVE) - Details

See Assembly Version of this Bill:
A5627
Law Section:
Real Property Law
Laws Affected:
Add §280-d, RP L
Versions Introduced in 2017-2018 Legislative Session:
A5821

2019-S4408 (ACTIVE) - Summary

Requires an authorized lender which seeks to foreclose upon a reverse mortgage issued under the federal home equity conversion mortgage program to provide notice thereof to the department of financial services and to the mortgagor; directs such department to provide notice to the mortgagor of legal service organizations which may assist them with the default or foreclosure; prohibits authorized lenders from making advance payment of debts upon the mortgaged real property.

2019-S4408 (ACTIVE) - Sponsor Memo

2019-S4408 (ACTIVE) - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4408
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                              March 11, 2019
                                ___________
 
 Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
   printed to be committed to the Committee on Aging
 
 AN  ACT to amend the real property law, in relation to the regulation of
   default and foreclosure of reverse mortgages issued under the  federal
   home equity conversion mortgage for seniors program

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The real property law is amended by adding  a  new  section
 280-d to read as follows:
   §  280-D. FEDERAL HOME EQUITY CONVERSION MORTGAGE DEFAULT AND FORECLO-
 SURE REGULATION. 1. FOR THE PURPOSES  OF  THIS  SECTION,  THE  FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A)  REVERSE  MORTGAGE  LOAN.  A  REVERSE  MORTGAGE LOAN AS DEFINED IN
 SECTION TWO HUNDRED EIGHTY OF THIS ARTICLE,  WHICH  IS  ISSUED  IN  THIS
 STATE  PURSUANT  TO  THE  HOME  EQUITY  CONVERSION  MORTGAGE FOR SENIORS
 PROGRAM OPERATED BY THE FEDERAL DEPARTMENT OF HOUSING AND URBAN DEVELOP-
 MENT.
   (B) AUTHORIZED LENDER. AN AUTHORIZED LENDER AS DEFINED IN SECTION  TWO
 HUNDRED  EIGHTY  OF  THIS  ARTICLE  AUTHORIZED  TO MAKE REVERSE MORTGAGE
 LOANS, AS DEFINED IN THIS SECTION.
   (C) DEPARTMENT.  THE  DEPARTMENT  OF  FINANCIAL  SERVICES  ESTABLISHED
 PURSUANT TO SECTION ONE HUNDRED TWO OF THE FINANCIAL SERVICES LAW.
   2.  IN  THE  EVENT OF A DEFAULT OR FORECLOSURE UPON A REVERSE MORTGAGE
 LOAN, THE AUTHORIZED LENDER, UPON THE COMMENCEMENT  OF  THE  FORECLOSURE
 PROCEEDING,  SHALL  TRANSMIT  TO  THE  DEPARTMENT PROOF THAT THE FEDERAL
 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT HAS GRANTED  PRIOR  APPROVAL
 TO ACCELERATE THE LOAN, PROOF OF THE DEFAULT NOTICE TO THE MORTGAGOR AND
 ANY  SUCH  INFORMATION  RELATING  TO  THE LOANS AND THE MORTGAGOR AS THE
 DEPARTMENT SHALL DETERMINE TO BE NECESSARY. UPON RECEIPT OF SUCH  INFOR-
 MATION,  THE DEPARTMENT SHALL PROVIDE NOTICE OF AND INFORMATION RELATING
 TO THE FORECLOSURE TO THE MORTGAGOR. SUCH NOTICE SHALL INCLUDE A  NOTICE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

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