Loading chat...
NY A05627
Bill
Status
12/15/2020
Primary Sponsor
Helene Weinstein
Click for details
AI Summary
-
Requires authorized lenders to notify the New York Department of Financial Services upon commencing foreclosure proceedings on federally-insured reverse mortgages, including proof of HUD approval to accelerate the loan and default notice to the mortgagor.
-
Mandates the Department of Financial Services provide the mortgagor with notice of foreclosure rights and contact information for legal service organizations that can assist with mortgage defaults or foreclosures.
-
Prohibits authorized lenders from making advance payments on obligations arising from the mortgaged property, except for arrears in mortgage insurance premiums, homeowners insurance premiums, or real property taxes.
-
Requires reverse mortgage commitment documents to inform borrowers in writing that the Department of Financial Services will receive notice of any default or foreclosure to provide assistance.
-
Directs the Department of Financial Services to issue regulations requiring mandatory loss mitigation procedures for mortgagees that comply with federal HUD restrictions, with noncompliance serving as a complete defense to foreclosure actions; allows injured parties to recover treble damages plus attorney's fees.
Legislative Description
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.
Last Action
APPROVAL MEMO.43
12/15/2020