NY State Senate Bill 2017-S4483

Senate Bill S4483

2017-2018 Legislative Session

Directs the department of financial services to establish a website for federal home equity conversion mortgage product comparison

download bill text pdf

Archive: Last Bill Status - In Senate Committee Finance 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

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 30, 2018	reported and committed to finance
Jan 03, 2018	referred to judiciary
Jun 21, 2017	committed to rules
Jun 05, 2017	advanced to third reading
May 24, 2017	2nd report cal.
May 23, 2017	1st report cal.1128
Feb 15, 2017	referred to judiciary

Votes

- Jan 30, 2018 - Judiciary Committee Vote
  S4483
  
  19
  
  Aye
  
  0
  
  Nay
  
  3
  
  Aye with Reservations
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Judiciary Committee Vote: Jan 30, 2018
      
      aye (19)
      
      Amedore
      
      Avella
      
      Bailey
      
      Boyle
      
      Breslin
      
      Croci
      
      Dilan
      
      Hamilton
      
      Hoylman-Sigal
      
      Jacobs
      
      Kaminsky
      
      Kavanagh
      
      Lanza
      
      O'Mara
      
      Phillips
      
      Ranzenhofer
      
      Savino
      
      Serino
      
      Stavisky
      
      aye wr (3)
      
      Bonacic
      
      Hannon
      
      LaValle
      
      excused (1)
      
      Montgomery
  May 23, 2017 - Judiciary Committee Vote
  S4483
  
  20
  
  Aye
  
  0
  
  Nay
  
  3
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Judiciary Committee Vote: May 23, 2017
      
      aye (20)
      
      Amedore
      
      Avella
      
      Bailey
      
      Boyle
      
      Breslin
      
      Croci
      
      Diaz
      
      Dilan
      
      Hamilton
      
      Hannon
      
      Hoylman-Sigal
      
      Jacobs
      
      Kaminsky
      
      Lanza
      
      Montgomery
      
      Phillips
      
      Ranzenhofer
      
      Savino
      
      Serino
      
      Stavisky
      
      aye wr (3)
      
      Bonacic
      
      LaValle
      
      O'Mara

co-Sponsors

2017-S4483 (ACTIVE) - Details

See Assembly Version of this Bill:: A5819
Current Committee:: Senate Finance
Law Section:: Real Property Law
Laws Affected:: Add §280-c, RP L
Versions Introduced in 2019-2020 Legislative Session:: S3221, A5625

2017-S4483 (ACTIVE) - Summary

Directs the department of financial services to establish an internet website for comparison of federal home equity conversion reverse mortgage products offered in the state.

2017-S4483 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S4483

 TITLE OF BILL :  An act to amend the real property law, in relation
to directing the department of financial services to establish an
internet website for federal home equity conversion mortgage product
comparison

 PURPOSE :

This bill would create a new website, run by the Department of
Financial Services, to compare HUD home equity conversion mortgage
information, rates, and features to seniors in order to create a
buyer's market for these products and ensure seniors have reliable,
updated, and comprehensive information about the products.

 SUMMARY OF PROVISIONS :

Section 1: Requires the Department of Financial Services to establish
and operate a home equity conversion mortgage comparison website. The
website will provide information to seniors, including information and
comparisons on reverse mortgage loan products in order to help seniors
make educated decisions on which products to choose.

The website will allow the consumer to compare the cost, rate, and
service features of these products.

Lenders may submit their reverse mortgage products for comparison on
the website so long as they submit complete reverse mortgage loan
pricing to the department and all factors relating to the reverse
mortgage loans affecting future rate adjustments. The prices and costs
provided must be as low or lower than those offered via other avenues,
and the lender must pay a fee determined by DFS to maintain the
website.

Section 2: The act will take effect one hundred and eighty days after
it becomes a law, but DFS may immediately take whatever actions
necessary to begin is implementation.

 EXISTING LAW :

Under current law, there exists no state-run comparison website for
home equity conversion mortgage products.

 JUSTIFICATION :

Reverse mortgages are complicated and expensive financial products.
Many seniors do not understand how they work or what their true
long-term costs are. Exacerbating this problem are unscrupulous
lenders who market reverse mortgages as public services or
government-sponsored products. Inadequate regulation of this industry
resulted in a sharp uptick in defaults in 2016, as more seniors fell
into foreclosure on these products, losing not only their homes, but
also their most significant financial assets.

Foreclosures in the reverse mortgage industry have taken place against
seniors for making payments mere cents short of their tax or mortgage
insurance bills. Lenders eager to tap the equity in these homes are
sometimes aggressive to foreclose and see a return on their
investment. Seniors can be better protected by providing them with
clearer, more accurate information about these products and helping
seniors to compare these products and their associated costs.

A reverse mortgage comparison website monitored and run by DFS would
create a buyer's market that would empower seniors to seek out lenders
and compare products offered by various lenders in order to make and
educated decision absent any form of high pressure marketing or
subjective/selective information provided by potentially unscrupulous
lenders.

 LEGISLATIVE HISTORY :

This is a new bill.

 FISCAL IMPLICATIONS :

To be determined.

 LOCAL FISCAL IMPLICATIONS :

None.

2017-S4483 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4483
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             February 15, 2017
                                ___________
 
 Introduced  by Sen. HAMILTON -- read twice and ordered printed, and when
   printed to be committed to the Committee on Judiciary
 
 AN ACT to amend the real property law,  in  relation  to  directing  the
   department  of financial services to establish an internet website for
   federal home equity conversion mortgage product comparison

   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-c to read as follows:
   § 280-C. FEDERAL HOME EQUITY CONVERSION MORTGAGE  COMPARISON  WEBSITE.
 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 THE STATE
 PURSUANT  TO  THE  HOME  EQUITY  CONVERSION MORTGAGE FOR SENIORS PROGRAM
 OPERATED BY THE FEDERAL DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT.
   (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. THE DEPARTMENT SHALL ESTABLISH AND OPERATE A HOME EQUITY CONVERSION
 MORTGAGE  COMPARISON  WEBSITE. SUCH WEBSITE SHALL PROVIDE INFORMATION TO
 POTENTIAL CONSUMERS OF REVERSE MORTGAGE LOANS, INCLUDING INFORMATION AND
 COMPARISONS ON REVERSE MORTGAGE LOAN PRODUCTS SO AS TO  ALLOW  CONSUMERS
 TO  MAKE  EDUCATED CHOICES AS TO WHICH AUTHORIZED LENDERS OFFER THE BEST
 SERVICES, TERMS AND VALUE BASED ON A VARIETY OF FINANCIAL CIRCUMSTANCES.
 THE DEPARTMENT SHALL ENSURE THAT THE WEBSITE ALLOWS CONSUMERS TO COMPARE
 THE COST, RATE AND SERVICE FEATURES OF REVERSE MORTGAGE LOAN PRODUCTS.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07813-02-7

 S. 4483                             2
 
   3. AN AUTHORIZED LENDER MAY SUBMIT INFORMATION ON ITS REVERSE MORTGAGE
 LOAN PRODUCTS TO THE DEPARTMENT FOR INCLUSION ON  THE  INTERNET  WEBSITE
 ESTABLISHED PURSUANT TO THIS SECTION, IF:
   (A) THE AUTHORIZED LENDER SUBMITS COMPLETE REVERSE MORTGAGE LOAN PRIC-
 ES TO THE DEPARTMENT;
   (B)  THE AUTHORIZED LENDER SUBMITS ALL FACTORS RELATING TO THE REVERSE
 MORTGAGE LOANS AFFECTING FUTURE RATE ADJUSTMENTS WHICH MAY IMPACT FUTURE
 DEBT, BORROWER EQUITY OR LINES OF CREDIT;
   (C) THE PRICES AND COSTS PROVIDED TO THE  DEPARTMENT  ARE  AS  LOW  OR
 LOWER  THAN THOSE OFFERED UNDER ANY OTHER CIRCUMSTANCES FOR A PARTICULAR
 PRODUCT; AND
   (D) THE AUTHORIZED LENDER SUBMITS SUCH FEE, AS SHALL BE DETERMINED  BY
 THE DEPARTMENT, FOR THE PUBLICATION OF INFORMATION ON THE WEBSITE.
   § 2. This act shall take effect on the one hundred eightieth day after
 it shall have become a law; provided, however, that effective immediate-
 ly,  any  actions  necessary for the implementation of the provisions of
 this act on its  effective  date  are  authorized  and  directed  to  be
 completed on or before such effective date.

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Senate Bill S4483

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Sponsored By

Jesse Hamilton