NY State Senate Bill S3221

Archive: Last Bill Status Via A5625 - Vetoed by Governor

Introduced
In Committee
On Floor Calendar
- Passed Senate
- Passed Assembly
Delivered to Governor
Vetoed by Governor

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Actions

view actions (12)

	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

view votes

Jun 14, 2019 - floor Vote

A5625A

floor

Aye

Nay

Absent

Excused

Abstained

Jun 14, 2019 - Rules committee Vote

S3221

committee

Aye

Nay

Aye with Reservations

Absent

Excused

Abstained

Apr 30, 2019 - Judiciary committee Vote

S3221

committee

Aye

Nay

Aye with Reservations

Absent

Excused

Abstained

Co-Sponsors

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

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.

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.

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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The New York State Senate

senate Bill S3221

Sponsored By

Archive: Last Bill Status Via A5625 - Vetoed by Governor

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Votes

Jun 14, 2019 - floor Vote

Floor Vote: Jun 14, 2019

Jun 14, 2019 - Rules committee Vote

Rules Committee Vote: Jun 14, 2019

Apr 30, 2019 - Judiciary committee Vote

Judiciary Committee Vote: Apr 30, 2019

Co-Sponsors

S3221 (ACTIVE) - Details

S3221 (ACTIVE) - Summary

S3221 (ACTIVE) - Sponsor Memo

S3221 (ACTIVE) - Bill Text download pdf

Comments

senate Bill S3221

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Sponsored By

James Sanders Jr.

Archive: Last Bill Status Via A5625 - Vetoed by Governor

Your Voice

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Votes

Jun 14, 2019 - floor Vote

Floor Vote: Jun 14, 2019

Jun 14, 2019 - Rules committee Vote

Rules Committee Vote: Jun 14, 2019

Apr 30, 2019 - Judiciary committee Vote

Judiciary Committee Vote: Apr 30, 2019

Co-Sponsors

Anna M. Kaplan

S3221 (ACTIVE) - Details

S3221 (ACTIVE) - Summary

S3221 (ACTIVE) - Sponsor Memo

S3221 (ACTIVE) - Bill Text download pdf

Comments