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NY S01541
Bill
Status
1/12/2023
Primary Sponsor
Leroy Comrie
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AI Summary
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Requires the Department of Financial Services to establish and distribute a New York State home equity conversion information summary for reverse mortgages issued under the federal HUD program to authorized lenders.
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Mandates that authorized lenders provide mortgagors with a completed summary at least five days before closing, with both parties signing duplicate copies acknowledging understanding.
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Summary must include notice that loans are not cost-free, itemized costs and interest rates, payment schedules, default conditions, alternatives to reverse mortgages, foreclosure rights, tax exemptions, HUD-certified counseling resources, and legal assistance information.
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Makes reverse mortgage loans null and void if the required information summary is not provided to mortgagors.
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Authorizes injured parties to sue for treble actual damages plus reasonable attorney's fees for violations, and permits the superintendent of financial services to promulgate implementing regulations.
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
1/3/2024