NY S02274

Directs the agency to establish a home equity protection insurance program for owner-occupied one-to-four family residences, including condominiums and cooperatives, whose owners meet income qualifications for forward commitment mortgages.

Insures the full value of residential property determined by purchase price, purchase price plus rehabilitation costs, or appraisal, with premiums set by the agency.

Requires a three-year minimum occupancy period and pays policyholders the difference between the insurance policy face value and the sale price if the property sells for less than the insured amount, unless the loss resulted predominantly from the owner's neglect.

Establishes a home equity protection insurance fund as a revolving fund supported by premiums, with a required reserve of at least 20 percent of amounts insured under the program.

Authorizes investment of fund moneys in time deposits, certificates of deposit, and securities issued by the United States, New York State, municipalities, or federal agencies, with proceeds available to meet estimated expenditures.