NY A08782

Amends banking law to modify requirements for reverse cooperative apartment unit loans, including changes to lender notification procedures and borrower protections.

Removes exemptions from letter of credit requirements for fully funded loans and eliminates capital requirement exemptions for lenders selling loans in the secondary market.

Clarifies that lenders must notify borrowers and third-party contacts within thirty business days of any loan termination event and allow forty-five calendar days to cure before loan acceleration.

Updates foreclosure notice requirements to include specific language about cooperative apartment unit loss and adds a website link to housing counseling resources (https://www.dfs.ny.gov/consumers/help_for_homeowners/new_york_state_non-profit_housing_counseling_agencies).

Modifies civil procedure rules to specify that borrower death constitutes default only as detailed in foreclosure procedures, and requires lenders to file petitions in supreme court rather than pursue non-judicial remedies.