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NY S02373
Bill
Status
1/24/2019
Primary Sponsor
David Carlucci
Click for details
AI Summary
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Requires the Department of Financial Services to establish and distribute a New York state home equity conversion information summary to authorized lenders for reverse mortgage loans issued under the federal home equity conversion mortgage program.
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Mandates authorized lenders provide mortgagors with a completed information summary in duplicate at least 5 days before closing, which must be signed by the mortgagor and retained by both the lender and mortgagor's attorney.
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Information summary must include: notice that reverse mortgages have associated costs, payment schedules, tax and estate planning considerations, prepayment provisions, interest rates, default conditions, alternatives to reverse mortgages, foreclosure rights, property tax exemptions, HUD-certified counseling resources, and legal assistance information.
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Declares reverse mortgage loans null and void if the information summary is not provided.
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Allows injured parties to sue for treble damages plus attorney's fees for violations; takes effect 120 days after enactment.
Legislative Description
Provides for the establishment of the New York state home equity conversion information summary to provide notice of mortgagor's right and responsibilities under reverse mortgage loans issued under the home equity conversion mortgage program of the federal Department of Housing and Urban Development; provides that every authorized lender must provide copies of such summary not less than 5 days prior to closing on a reverse mortgage loan; establishes a private right of action for violations of such provisions.
Last Action
REFERRED TO AGING
1/8/2020