NY State Senate Bill 2019-S3221

Senate Bill S3221

Vetoed By Governor

2019-2020 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 Via A5625 - Vetoed by Governor

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

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Dec 06, 2019	tabled vetoed memo.173
Nov 26, 2019	delivered to governor
Jun 14, 2019	returned to assembly passed senate 3rd reading cal.1380 substituted for s3221
Jun 14, 2019	substituted by a5625a ordered to third reading cal.1380 committee discharged and committed to rules
Apr 30, 2019	reported and committed to finance
Feb 04, 2019	referred to judiciary

Votes

- Jun 14, 2019 - Floor Vote
  A5625
  
  62
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 14, 2019
      
      aye (62)
      
      Addabbo Jr.
      
      Akshar
      
      Amedore
      
      Antonacci
      
      Bailey
      
      Benjamin
      
      Biaggi
      
      Boyle
      
      Breslin
      
      Brooks
      
      Carlucci
      
      Comrie
      
      Felder
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Gaughran
      
      Gianaris
      
      Gounardes
      
      Griffo
      
      Harckham
      
      Helming
      
      Hoylman-Sigal
      
      Jackson
      
      Jacobs
      
      Jordan
      
      Kaminsky
      
      Kaplan
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      LaValle
      
      Lanza
      
      Little
      
      Liu
      
      Martinez
      
      May
      
      Mayer
      
      Metzger
      
      Montgomery
      
      Myrie
      
      O'Mara
      
      Ortt
      
      Parker
      
      Persaud
      
      Ramos
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Salazar
      
      Sanders Jr.
      
      Savino
      
      Sepúlveda
      
      Serino
      
      Serrano
      
      Seward
      
      Skoufis
      
      Stavisky
      
      Stewart-Cousins
      
      Tedisco
      
      Thomas
  Jun 14, 2019 - Rules Committee Vote
  S3221
  
  19
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 14, 2019
      
      aye (19)
      
      Benjamin
      
      Breslin
      
      Comrie
      
      Flanagan
      
      Gianaris
      
      Griffo
      
      Hoylman-Sigal
      
      Kennedy
      
      Krueger
      
      LaValle
      
      Lanza
      
      Little
      
      Liu
      
      Martinez
      
      Parker
      
      Robach
      
      Savino
      
      Seward
      
      Stewart-Cousins
  Apr 30, 2019 - Judiciary Committee Vote
  S3221
  
  13
  
  Aye
  
  1
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Judiciary Committee Vote: Apr 30, 2019
      
      aye (13)
      
      Bailey
      
      Boyle
      
      Breslin
      
      Gounardes
      
      Hoylman-Sigal
      
      Kaplan
      
      Lanza
      
      Myrie
      
      Ranzenhofer
      
      Savino
      
      Sepúlveda
      
      Stavisky
      
      Thomas
      
      nay (1)
      
      LaValle
      
      aye wr (1)
      
      O'Mara

co-Sponsors

2019-S3221 (ACTIVE) - Details

See Assembly Version of this Bill:: A5625
Law Section:: Real Property Law
Laws Affected:: Add §280-b, RP L
Versions Introduced in 2017-2018 Legislative Session:: S4483, A5819

2019-S3221 (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.

2019-S3221 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S3221

SPONSOR: SANDERS
 
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 comprehen-
sive 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 longterm
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.

2019-S3221 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3221
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             February 4, 2019
                                ___________
 
 Introduced  by  Sen. SANDERS -- 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-b to read as follows:
   § 280-B. 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.
                                                            LBD00900-02-9

 S. 3221                             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. 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.

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Senate Bill S3221

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Sponsored By

James Sanders Jr.