NY State Senate Bill 2017-S1992

Senate Bill S1992

2017-2018 Legislative Session

Makes certain provisions applicable to foreclosure upon reverse mortgages effective immediately and on a continuing basis

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Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 26, 2018	print number 1992a
Jan 26, 2018	amend (t) and recommit to housing, construction and community development
Jan 03, 2018	referred to housing, construction and community development
Jan 11, 2017	referred to housing, construction and community development

Bill Amendments

Original

A (Active)

2017-S1992 - Details

See Assembly Version of this Bill:: A1266
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Real Property Actions and Proceedings Law
Laws Affected:: Amd §1304, RPAP L
Versions Introduced in 2015-2016 Legislative Session:: S8177, A10745

2017-S1992 - Summary

Makes certain changes applicable to the foreclosure of reverse mortgages, made by chapter 55 of the laws of 2017, take effect immediately and continue past the expiration of certain provisions of law.

2017-S1992 - Sponsor Memo

                                 BILL NUMBER:  S1992

 TITLE OF BILL :  An act to amend the real property actions and
proceedings law, in relation to required prior notices

 SUMMARY OF PROVISIONS :

Section 1 amends paragraph (a) of subdivision 6 of section 1304 of the
Real Property Actions and Proceedings Law (RPAPL), as amended by part
Q of chapter 73 of 2016, to include reverse mortgage transactions in
the definition of Home loans for purposes of residential foreclosures
and related notices.

Section 2 amends paragraph (b) of subdivision 6 of section 1304 of
RPAPL, as amended by part Q of chapter 73 of 2016, to include reverse
mortgage transactions in the definition of Home loans for purposes of
residential foreclosures and related notices.

Section 3: Sets an immediate effective date.

 JUSTIFICATION :

Reverse mortgages are not currently included in many important
protections afforded residential foreclosures, including receipt of
pre-foreclosure notices and entitlement to mandatory foreclosure
settlement conferences.

Practitioners have been experiencing a rise in reverse mortgage
foreclosures. Recent media coverage has confirmed this uptick in
residential foreclosures against homeowners with reverse mortgages.
The coverage also highlights the exploitation by lenders of the
vulnerabilities of the elderly. See "Taking out a reverse mortgage
ruined my life" New York Post, July 23, 2016; and "New York Launches
Reverse Mortgage Probe" New York Post, July 29, 2016.

Reverse mortgages are only available to senior citizens, and without
the equal protections of our laws, these financially vulnerable
homeowners have little recourse when faced with foreclosures filed by
their lenders. All homeowners should have the same protections of New
York's foreclosure laws, including those with reverse mortgages. This
measure would fill the current gap in our laws.

 LEGISLATIVE HISTORY :

S. 8177 of 2016, In Senate Rules Committee

 FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS :

None.

 EFFECTIVE DATE :
Immediately, with provisions.

2017-S1992 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1992
 
                        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
 
 AN  ACT  to  amend  the  real  property  actions and proceedings law, in
   relation to required prior notices

   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)  "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. Paragraph (b) of subdivision 6 of section 1304 of the real  prop-
 erty  actions  and proceedings law, as amended by section 7 of part Q of
 chapter 73 of the laws of 2016, is amended to read as follows:
   (b) "Home loan" means a home loan, including an open-end credit  plan,
 [other than a reverse mortgage transaction,] in which:
   (i) The principal amount of the loan at origination did not exceed the
 conforming  loan  size  that was in existence at the time of origination
 for a comparable dwelling as established by the federal  national  mort-
 gage association;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD00004-02-7

 S. 1992                             2
 
   (ii) The borrower is a natural person;
   (iii)  The  debt  is  incurred by the borrower primarily for personal,
 family, or household purposes;
   (iv) The loan is secured by a mortgage or deed of trust on real estate
 upon which there is located or there is to be  located  a  structure  or
 structures  intended principally for occupancy of from one to four fami-
 lies which is or will be occupied by  the  borrower  as  the  borrower's
 principal dwelling; and
   (v) The property is located in this state.
   §  3.  This act shall take effect immediately; provided, however, that
 the amendments to subdivision 6 of section 1304  of  the  real  property
 actions  and  proceedings  law  made by section one of this act shall be
 subject to the expiration and reversion of such subdivision pursuant  to
 subdivision  a  of  section  25  of  chapter 507 of the laws of 2009, as
 amended, when upon such date the provisions of section two of  this  act
 shall take effect.

2017-S1992A (ACTIVE) - Details

See Assembly Version of this Bill:: A1266
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Real Property Actions and Proceedings Law
Laws Affected:: Amd §1304, RPAP L
Versions Introduced in 2015-2016 Legislative Session:: S8177, A10745

2017-S1992A (ACTIVE) - Summary

2017-S1992A (ACTIVE) - Sponsor Memo

2017-S1992A (ACTIVE) - Bill Text download pdf

                            
 
                     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.

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