NY S04407

Prohibits authorized lenders from using misleading language such as "public service announcement," "government insured," or similar terms in marketing reverse mortgages, and requires them to clearly identify reverse mortgages as commercial products.

Requires authorized lenders to provide supplemental consumer protection materials with solicitations, the telephone number and website for federal Department of Housing and Urban Development counseling, and clear periodic account statements showing remaining line of credit balance and projected annual property charges.

Mandates that authorized lenders notify mortgagors by telephone and first-class mail when equity line of credit or life expectancy set-aside reaches 10% or less of value, and again when fully depleted, informing them of continuing obligations for taxes, insurance, and mortgage insurance.

Prohibits advance payments on property obligations and restricts lenders to paying only past-due amounts; requires an in-person visit and 30-day waiting period before foreclosing based on non-occupancy, and prohibits charging fees for property inspections or visits.

Requires both authorized lenders and mortgagors to be represented by attorneys at loan closing, and allows injured parties to recover treble damages plus attorney's fees for violations; establishes that lender compliance with these provisions is a prerequisite to foreclosure actions.