NY A05637

Directs the agency to establish a home equity protection insurance program that insures the full value of one-to-four family residences, including condominiums and cooperatives, for owner-occupants meeting income qualifications for forward commitment mortgages.

Property value is determined by purchase price, purchase price plus rehabilitation costs, or an appraisal, with insurance issued after purchase or rehabilitation upon payment of an agency-determined premium.

Upon sale of insured property, the agency pays the policy holder the difference between the insurance policy face value and sale price if the sale price is lower and the owner has occupied the property for at least three years.

Requires the agency to create a revolving home equity protection insurance fund supported by premium revenues and to maintain a reserve equal to at least twenty percent of amounts insured under the program.

Permits fund investments in time deposit accounts, certificates of deposit at state-authorized financial institutions, and U.S. or state obligations; takes effect 180 days after enactment.