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NY S04408
Bill
Status
12/15/2020
Primary Sponsor
Andrew Gounardes
Click for details
AI Summary
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Requires authorized lenders to transmit proof of federal Department of Housing and Urban Development approval to accelerate the loan and default notice to the Department of Financial Services upon commencing foreclosure proceedings on reverse mortgages.
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Mandates the Department of Financial Services provide notice to mortgagors of their foreclosure rights and contact information for legal service organizations that can assist with mortgage defaults or foreclosures.
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Prohibits authorized lenders from making advance payments on obligations arising from mortgaged property, except for arrears in mortgage insurance premiums, homeowners insurance premiums, or real property taxes.
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Requires the Department of Financial Services to issue regulations mandating mortgagees engage in loss mitigation procedures compliant with federal Department of Housing and Urban Development restrictions and report specific loan-level data to the department.
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Makes compliance with these requirements conditions precedent to foreclosure proceedings, with noncompliance serving as a complete defense to foreclosure actions; allows injured parties to recover treble damages plus attorney's fees for violations.
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