NY S02944

Requires lenders to deliver a plain language statement prepared by the Department of Financial Services (in consultation with the New York State Office for the Aging) regarding reverse mortgage counseling and information services upon application.

Mandates lenders provide prospective borrowers with a reverse mortgage worksheet guide prepared by the Department of Financial Services before the borrower meets with a counseling agency, covering impacts on heirs/estate, default consequences, alternatives, and government assistance eligibility.

Prohibits lenders from accepting final reverse mortgage applications or assessing fees until seven days have elapsed from the counseling date, with written certification that counseling was received or a signed affidavit waiving counseling.

Requires reverse mortgage loans to bear an express and conspicuous legend identifying them as reverse mortgages and mandates a new requirement for lenders to notify the borrower's designated third party or local aging office before initiating foreclosure proceedings.

Makes the Department of Financial Services responsible for developing statement and affidavit forms, replacing prior authority granted to local or county offices for the aging.