Senate Bill S1992A

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  1992--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 11, 2017
                                ___________
 
 Introduced  by  Sen.  KLEIN  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Housing, Construction  and
   Community  Development  --  recommitted  to  the Committee on Housing,
   Construction and Community Development in accordance with Senate  Rule
   6,  sec. 8 -- committee discharged, bill amended, ordered reprinted as
   amended and recommitted to said committee
 
 AN ACT to amend the real property actions and proceedings  law  and  the
   civil  practice  law  and  rules,  in  relation  to foreclosure upon a
   reverse mortgage
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Paragraph (a) of subdivision 6 of section 1304 of the real
 property actions and proceedings law, as amended by section 6 of part  Q
 of chapter 73 of the laws of 2016, is amended to read as follows:
   (a)  (1)  "Home loan" means a loan, including an open-end credit plan,
 [other than a reverse mortgage transaction,] in which:
   (i) The borrower is a natural person;
   (ii) The debt is incurred by  the  borrower  primarily  for  personal,
 family, or household purposes;
   (iii)  The  loan  is  secured  by  a mortgage or deed of trust on real
 estate improved by a one to four family dwelling, or a condominium unit,
 in either case, used or occupied, or intended to  be  used  or  occupied
 wholly  or  partly,  as the home or residence of one or more persons and
 which is or will be occupied by the borrower as the borrower's principal
 dwelling; and
   (iv) The property is located in this state.
   (2) A HOME LOAN SHALL INCLUDE A LOAN SECURED  BY  A  REVERSE  MORTGAGE
 THAT  MEETS THE REQUIREMENTS OF CLAUSES (I) THROUGH (IV) OF SUBPARAGRAPH
 ONE OF THIS PARAGRAPH.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00004-03-8

              

 S. 1992--A                          2
 
   § 2. Subdivision (a) of rule 3408 of the civil practice law and rules,
 as amended by section 3 of part Q of chapter 73 of the laws of 2016,  is
 amended to read as follows:
   (a)  [In]  1. EXCEPT AS PROVIDED IN PARAGRAPH TWO OF THIS SUBDIVISION,
 IN any residential foreclosure action involving a  high-cost  home  loan
 consummated  between  January  first,  two  thousand three and September
 first, two thousand eight, or a subprime or nontraditional home loan, as
 those terms are defined under section thirteen hundred four of the  real
 property  actions and proceedings law, in which the defendant is a resi-
 dent of the property subject to foreclosure,  the  court  shall  hold  a
 mandatory  conference  within  sixty  days  after the date when proof of
 service is filed with the county clerk, or on such adjourned date as has
 been agreed to by the parties, for the  purpose  of  holding  settlement
 discussions  pertaining  to  the  relative rights and obligations of the
 parties under the mortgage loan documents, including,  but  not  limited
 to: [1.] (I) determining whether the parties can reach a mutually agree-
 able  resolution to help the defendant avoid losing his or her home, and
 evaluating the potential for a resolution in which payment schedules  or
 amounts  may  be  modified  or  other  workout  options may be agreed to
 including, but not limited to, a loan modification, short sale, deed  in
 lieu  of  foreclosure, or any other loss mitigation option; or [2.] (II)
 whatever other purposes the court deems appropriate.
   2. (I) PARAGRAPH ONE OF THIS SUBDIVISION SHALL NOT  APPLY  TO  A  HOME
 LOAN  SECURED  BY  A REVERSE MORTGAGE WHERE THE DEFAULT WAS TRIGGERED BY
 THE DEATH OF THE LAST SURVIVING BORROWER UNLESS:
   (A) THE LAST SURVIVING BORROWER'S SPOUSE, IF ANY, IS A RESIDENT OF THE
 PROPERTY SUBJECT TO FORECLOSURE; OR
   (B) THE LAST SURVIVING  BORROWER'S  SUCCESSOR  IN  INTEREST,  WHO,  BY
 BEQUEST  OR  THROUGH INTESTACY, OWNS, OR HAS A CLAIM TO THE OWNERSHIP OF
 THE PROPERTY SUBJECT TO FORECLOSURE, AND WHO  WAS  A  RESIDENT  OF  SUCH
 PROPERTY AT THE TIME OF THE DEATH OF SUCH LAST SURVIVING BORROWER.
   (II)  THE  SUPERINTENDENT  OF  FINANCIAL  SERVICES MAY PROMULGATE SUCH
 RULES AND REGULATIONS AS HE OR SHE SHALL DEEM NECESSARY TO IMPLEMENT THE
 PROVISIONS OF THIS PARAGRAPH.
   § 3. This act shall take effect immediately and  shall  be  deemed  to
 have been in full force and effect on and after April 20, 2017; provided
 that:
   (a)  the amendments to subdivision 6 of section 1304 of the real prop-
 erty actions and proceedings law, made by section one of this act, shall
 not affect the expiration and reversion of such subdivision pursuant  to
 subdivision  a  of  section  25  of  chapter 507 of the laws of 2009, as
 amended, and shall be deemed repealed therewith; and
   (b) the amendments to subdivision (a) of rule 3408 of the civil  prac-
 tice  law  and rules, made by section two of this act, shall take effect
 on the same date and in the same manner as section 3 of part Q of  chap-
 ter 73 of the laws of 2016 takes effect.