assembly Bill A7589

2017-2018 Legislative Session

Relates to enacting additional conditions on authorized lenders of reverse mortgages

download bill text pdf

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Archive: Last Bill Status - In Assembly Committee


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

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Actions

view actions (2)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 03, 2018 referred to judiciary
May 03, 2017 referred to judiciary

A7589 (ACTIVE) - Details

See Senate Version of this Bill:
S2758
Current Committee:
Assembly Judiciary
Law Section:
Real Property Law
Laws Affected:
Amd §§280 & 280-a, RP L
Versions Introduced in 2019-2020 Legislative Session:
A6883, S1246

A7589 (ACTIVE) - Summary

Adds new conditions on authorized lenders of reverse mortgages including: delivery of a plain language notice, providing the borrower with a reverse mortgage worksheet guide and counseling, and a lapse of seven days between the reverse mortgage counseling and acceptance of the borrower's final application.

A7589 (ACTIVE) - Bill Text download pdf


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

                                  7589

                       2017-2018 Regular Sessions

                          I N  A S S E M B L Y

                               May 3, 2017
                               ___________

Introduced  by M. of A. LUPARDO -- read once and referred to the Commit-
  tee on Judiciary

AN ACT to amend the real property law,  in  relation  to  conditions  on
  lenders who extend reverse mortgages to persons over sixty and seventy
  years old

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

  Section 1. Paragraphs (g), (h) and (i) of subdivision 2 of section 280
of the real property law, as added by chapter 613 of the laws  of  1993,
paragraph  (i) as further amended by section 104 of part A of chapter 62
of the laws of 2011, are amended to read as follows:
  (g) an authorized lender must deliver to the applicant, upon  applica-
tion[,  if available,] a PLAIN LANGUAGE statement prepared by the [local
or county] DEPARTMENT OF FINANCIAL SERVICES WHO MAY CONSULT WITH THE NEW
YORK STATE office for the aging, WHERE APPROPRIATE, on the  advisability
and  availability of independent counseling and information services. IN
ADDITION TO THE PLAIN LANGUAGE NOTICE, NO REVERSE MORTGAGE LOAN APPLICA-
TION SHALL BE TAKEN BY A LENDER UNLESS THE LENDER PROVIDES THE  PROSPEC-
TIVE  BORROWER,  PRIOR TO HIS OR HER MEETING WITH A COUNSELING AGENCY ON
REVERSE MORTGAGES,  WITH  A  REVERSE  MORTGAGE  WORKSHEET  GUIDE  TO  BE
PREPARED  BY  THE  DEPARTMENT OF FINANCIAL SERVICES WHO MAY CONSULT WITH
THE NEW YORK STATE OFFICE FOR THE AGING WHERE APPROPRIATE.  Further,  no
reverse  mortgage  commitment  shall  be  issued by an authorized lender
until the applicant presents, in writing, a statement that the terms  of
the  reverse mortgage loan have been explained by an attorney, a housing
and urban  development  certified  counselor  or  any  other  counseling
service  as  indicated on the statement supplied by the [county or local
office for the aging] DEPARTMENT OF FINANCIAL SERVICES or a signed affi-
davit indicating that the applicant, although made aware of  the  impor-
tance  of counseling and its local availability through the provision of
such information by the authorized lender, chooses not to utilize any of

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

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