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NY S02559
Bill
Status
1/21/2025
Primary Sponsor
Leroy Comrie
Click for details
AI Summary
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Requires the Department of Financial Services to create and distribute a "New York State Home Equity Conversion Information Summary" for reverse mortgages issued under the federal HECM program for seniors
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Summary must include notice that reverse mortgages are not free, payment schedules, interest rates and costs, default conditions, prepayment provisions, foreclosure rights, available tax exemptions, and alternatives to reverse mortgages such as social safety net programs
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Authorized lenders must provide the completed information summary to mortgagors at least 5 days before closing, with both copies signed by the mortgagor attesting they have read and understand it
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Failure to provide the required summary renders the reverse mortgage loan null and void
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Injured parties may bring private lawsuits to recover treble (triple) actual damages plus reasonable attorneys' fees for violations of these requirements
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
1/7/2026