NY A04843

Establishes a home equity protection insurance program to insure the full value of one-to-four family residences (including condominiums and cooperatives) owned by occupants meeting income qualifications for forward commitment mortgages.

Agency pays policyholders the difference between the insurance policy face value and the sales price if the property sells for less than the insured amount, provided the owner has occupied the property for at least three years.

Agency is not required to pay claims if the equity loss resulted predominantly from the policyholder's neglect of the property's physical condition.

Creates a revolving home equity protection insurance fund financed by premiums and other available sources, with a reserve requirement of at least 20 percent of total amounts insured under the program.

Permits fund investments in time deposits, certificates of deposit, and government securities issued by U.S. federal, state, and local entities.