assembly Bill A5821

2017-2018 Legislative Session

Requires lenders foreclosing upon home equity conversion reverse mortgages to provide notice to the department of financial services and the mortgagors

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Archive: Last Bill Status - On Floor Calendar


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

view actions (5)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 03, 2018 ordered to third reading cal.415
May 18, 2017 advanced to third reading cal.432
May 16, 2017 reported
May 09, 2017 reported referred to codes
Feb 16, 2017 referred to judiciary

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A5821 (ACTIVE) - Details

See Senate Version of this Bill:
S4452
Law Section:
Real Property Law
Laws Affected:
Add §280-d, RP L
Versions Introduced in 2019-2020 Legislative Session:
A5627

A5821 (ACTIVE) - Summary

Requires an authorized lender which seeks to foreclose upon a reverse mortgage issued under the federal home equity conversion mortgage program to provide notice thereof to the department of financial services and to the mortgagor; directs such department to provide notice to the mortgagor of legal service organizations which may assist them with the default or foreclosure; prohibits authorized lenders from making advance payment of debts upon the mortgaged real property.

A5821 (ACTIVE) - Bill Text download pdf


                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5821

                       2017-2018 Regular Sessions

                          I N  A S S E M B L Y

                            February 16, 2017
                               ___________

Introduced  by  M.  of  A.  WEINSTEIN  --  read once and referred to the
  Committee on Judiciary

AN ACT to amend the real property law, in relation to the regulation  of
  default  and foreclosure of reverse mortgages issued under the federal
  home equity conversion mortgage for seniors program

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The  real property law is amended by adding a new section
280-d to read as follows:
  § 280-D. FEDERAL HOME EQUITY CONVERSION MORTGAGE DEFAULT AND  FORECLO-
SURE  REGULATION.  1.  FOR  THE  PURPOSES OF THIS SECTION, THE FOLLOWING
TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  (A) REVERSE MORTGAGE LOAN. A  REVERSE  MORTGAGE  LOAN  AS  DEFINED  IN
SECTION  TWO  HUNDRED  EIGHTY  OF  THIS ARTICLE, WHICH IS ISSUED IN THIS
STATE PURSUANT TO  THE  HOME  EQUITY  CONVERSION  MORTGAGE  FOR  SENIORS
PROGRAM OPERATED BY THE FEDERAL DEPARTMENT OF HOUSING AND URBAN DEVELOP-
MENT.
  (B)  AUTHORIZED LENDER. AN AUTHORIZED LENDER AS DEFINED IN SECTION TWO
HUNDRED EIGHTY OF THIS  ARTICLE  AUTHORIZED  TO  MAKE  REVERSE  MORTGAGE
LOANS, AS DEFINED IN THIS SECTION.
  (C)  DEPARTMENT.  THE  DEPARTMENT  OF  FINANCIAL  SERVICES ESTABLISHED
PURSUANT TO SECTION ONE HUNDRED TWO OF THE FINANCIAL SERVICES LAW.
  2. IN THE EVENT OF A DEFAULT OR FORECLOSURE UPON  A  REVERSE  MORTGAGE
LOAN,  THE  AUTHORIZED  LENDER, UPON THE COMMENCEMENT OF THE FORECLOSURE
PROCEEDING, SHALL TRANSMIT TO THE  DEPARTMENT  PROOF  THAT  THE  FEDERAL
DEPARTMENT  OF  HOUSING AND URBAN DEVELOPMENT HAS GRANTED PRIOR APPROVAL
TO ACCELERATE THE LOAN, PROOF OF THE DEFAULT NOTICE TO THE MORTGAGOR AND
ANY SUCH INFORMATION RELATING TO THE LOANS  AND  THE  MORTGAGOR  AS  THE
DEPARTMENT  SHALL DETERMINE TO BE NECESSARY. UPON RECEIPT OF SUCH INFOR-
MATION, THE DEPARTMENT SHALL PROVIDE NOTICE OF AND INFORMATION  RELATING
TO  THE FORECLOSURE TO THE MORTGAGOR. SUCH NOTICE SHALL INCLUDE A NOTICE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.