S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5628--A
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 14, 2019
                                ___________
 
 Introduced  by  M.  of  A.  WEINSTEIN,  MOSLEY,  JAFFEE, ABBATE, COLTON,
   CYMBROWITZ, GALEF, ZEBROWSKI, JOYNER, ORTIZ, GLICK, DINOWITZ, CARROLL,
   D'URSO, STECK, HYNDMAN, RICHARDSON, AUBRY, WEPRIN, SEAWRIGHT,  ABINAN-
   TI,  CAHILL,  BURKE,  TAYLOR  --  Multi-Sponsored by -- M. of A. COOK,
   ENGLEBRIGHT, NOLAN, SIMON, THIELE -- read once  and  referred  to  the
   Committee  on Judiciary -- committee discharged, bill amended, ordered
   reprinted as amended and recommitted to said committee
 
 AN ACT to amend the real property law, in relation to the  provision  of
   certain  information  to  mortgagors 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-b to read as follows:
   § 280-B. FEDERAL HOME EQUITY CONVERSION MORTGAGE  INFORMATION  SUMMARY
 SHEET.  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) MORTGAGOR. A MORTGAGOR AS DEFINED IN SECTION TWO HUNDRED EIGHTY OF
 THIS ARTICLE.
   (D)  DEPARTMENT.  THE  DEPARTMENT  OF  FINANCIAL  SERVICES ESTABLISHED
 PURSUANT TO SECTION ONE HUNDRED TWO OF THE FINANCIAL SERVICES LAW.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00916-03-9

              

 A. 5628--A                          2
 
   2. THE DEPARTMENT SHALL ESTABLISH AND DISTRIBUTE TO  AUTHORIZED  LEND-
 ERS,  AND  PERIODICALLY  UPDATE, A NEW YORK STATE HOME EQUITY CONVERSION
 INFORMATION SUMMARY. SUCH SUMMARY SHALL INCLUDE, BUT NOT BE LIMITED TO:
   (A)  NOTICE THAT REVERSE MORTGAGE LOANS ARE NOT FREE OR COST FREE, AND
 SUCH LOANS HAVE ASSOCIATED COSTS THAT  ARE  INCLUDED  IN  THE  FINANCING
 THEREOF;
   (B)  A  SCHEDULE OF PAYMENTS TO BE MADE TO AND FROM THE MORTGAGOR, AND
 THE TOTAL PAYMENT FOR BOTH THE MORTGAGEE AND THE AUTHORIZED LENDER  OVER
 THE  TERM  OF THE REVERSE MORTGAGE LOAN CONTINGENT UPON THE TYPE OF SUCH
 LOAN BEING OFFERED;
   (C) A STATEMENT ADVISING MORTGAGORS TO CONSULT WITH  LICENSED  PROFES-
 SIONALS  REGARDING  THE  TAX AND ESTATE PLANNING CONSEQUENCES OF REVERSE
 MORTGAGE LOANS;
   (D) WHERE APPLICABLE, A DESCRIPTION OF THE PREPAYMENT AND  REFINANCING
 PROVISIONS OF THE REVERSE MORTGAGE LOAN;
   (E)  AN  EXPLANATION AND ITEMIZATION OF THE POTENTIAL COSTS OF REVERSE
 MORTGAGE LOANS, INCLUDING THE RATE OF INTEREST AND TOTAL INTEREST  PAYA-
 BLE ON SUCH LOAN;
   (F)  A SUMMARY OF ACTIONS OR CONDITIONS THAT WILL CONSTITUTE A DEFAULT
 OF THE REVERSE MORTGAGE LOAN;
   (G) A SUMMARY AND EXPLANATION  OF  ALTERNATIVES  TO  ENTERING  INTO  A
 REVERSE  MORTGAGE  LOAN ON THE BASIS OF ECONOMIC HARDSHIP INCLUDING, BUT
 NOT LIMITED  TO,  DIRECT  SALE  OF  THE  RESIDENCE,  SOCIAL  SAFETY  NET
 PROGRAMS, DEBT CONSOLIDATION OR ECONOMIC COUNSELING;
   (H) INFORMATION ON A MORTGAGOR'S BASIC RIGHTS IN THE FORECLOSURE PROC-
 ESS;
   (I)  A SUMMARY OF THE REAL PROPERTY TAX EXEMPTIONS WHICH ARE AVAILABLE
 TO THE MORTGAGOR IN ORDER TO REDUCE HIS OR HER COST OF LIVING;
   (J) INFORMATION ABOUT NEW YORK STATE-BASED ORGANIZATIONS THAT  PROVIDE
 FEDERAL  DEPARTMENT  OF  HOUSING AND URBAN DEVELOPMENT CERTIFIED REVERSE
 MORTGAGE COUNSELING;
   (K) INFORMATION ON LEGAL ASSISTANCE  AND  ADVOCACY  ORGANIZATIONS  AND
 SERVICES  WHICH  PROVIDE  ASSISTANCE  TO  MORTGAGORS  IN  THE EVENT THAT
 COMPLICATIONS OR ISSUES ARISE RELATING TO THE REVERSE MORTGAGE LOAN; AND
   (L) SUCH OTHER INFORMATION AS THE DEPARTMENT SHALL DEEM  NECESSARY  TO
 FULLY  INFORM  MORTGAGORS  OF  THEIR RIGHTS AND RESPONSIBILITIES UNDER A
 REVERSE MORTGAGE LOAN.
   3. NOT LESS THAN FIVE DAYS PRIOR TO THE CLOSING UPON A  REVERSE  MORT-
 GAGE  LOAN,  THE  AUTHORIZED  LENDER  SHALL PROVIDE THE MORTGAGOR WITH A
 COMPLETED NEW YORK STATE HOME EQUITY CONVERSION INFORMATION  SUMMARY  IN
 DUPLICATE.    EACH  MORTGAGOR  SHALL  SIGN  BOTH COPIES OF SUCH SUMMARY,
 ATTESTING THAT HE OR SHE HAS READ AND FULLY UNDERSTANDS THE SUMMARY. ONE
 COPY THEREOF SHALL BE RETAINED BY THE AUTHORIZED LENDER  AND  THE  OTHER
 SHALL BE RETAINED BY THE MORTGAGOR'S ATTORNEY.
   4.  THE  PROVISION  OF  THE  INFORMATION  SUMMARY  ESTABLISHED BY THIS
 SECTION IS INTEGRAL TO THE EXECUTION OF A REVERSE MORTGAGE LOAN, THUS IN
 THE ABSENCE OF SUCH A SUMMARY THE RELATED REVERSE MORTGAGE LOAN SHALL BE
 NULL AND VOID.
   5. ANY PERSON WHO HAS BEEN INJURED BY REASON OF ANY VIOLATION OF  THIS
 SECTION OR THE RULES AND REGULATIONS RELATED THERETO MAY BRING AN ACTION
 IN HIS OR HER OWN NAME TO RECOVER TREBLE HIS OR HER ACTUAL DAMAGES, PLUS
 THE PREVAILING PLAINTIFF'S REASONABLE ATTORNEYS FEE.
   6.  THE  SUPERINTENDENT OF FINANCIAL SERVICES IS AUTHORIZED TO PROMUL-
 GATE ANY RULES OR REGULATIONS HE OR SHE DEEMS NECESSARY TO IMPLEMENT THE
 PROVISIONS OF THIS SECTION.

 A. 5628--A                          3
 
   § 2. This act shall take effect on the one hundred twentieth day after
 it shall have become a law. Effective immediately, the addition,  amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation  of  this act on its effective date are authorized to be made and
 completed on or before such effective date.