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NY S03793
Bill
Status
1/30/2021
Primary Sponsor
Leroy Comrie
Click for details
AI Summary
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Department of Financial Services must establish and distribute a New York state home equity conversion information summary to authorized lenders, periodically updated with required disclosures about reverse mortgage loan costs, payment schedules, interest rates, default conditions, and alternatives.
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Authorized lenders must provide mortgagors with a completed information summary in duplicate at least five days before closing, with both parties signing to attest the mortgagor has read and understands it.
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One signed copy must be retained by the authorized lender and the other by the mortgagor's attorney; absence of the summary renders the reverse mortgage loan null and void.
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Mortgagors injured by violations may bring civil actions to recover treble actual damages plus reasonable attorneys fees.
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The superintendent of financial services may promulgate rules and regulations to implement this section, with the act taking effect 120 days after becoming law.
Legislative Description
Provides for the establishment of the New York state home equity conversion information summary to provide notice of mortgagor's right and responsibilities under reverse mortgage loans issued under the home equity conversion mortgage program of the federal Department of Housing and Urban Development; provides that every authorized lender must provide copies of such summary not less than 5 days prior to closing on a reverse mortgage loan; establishes a private right of action for violations of such provisions.
Last Action
REFERRED TO AGING
1/5/2022