senate Bill S4408

2019-2020 Legislative Session

Requires lenders foreclosing upon home equity conversion reverse mortgages to provide notice to the department of financial services and the mortgagors

download bill text pdf

Sponsored By

Current Bill Status - Passed Senate


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

view actions (7)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
May 21, 2019 referred to judiciary
delivered to assembly
passed senate
May 20, 2019 advanced to third reading
May 15, 2019 2nd report cal.
May 14, 2019 1st report cal.742
Mar 11, 2019 referred to aging

Votes

view votes

May 14, 2019 - Aging committee Vote

S4408
6
0
committee
6
Aye
0
Nay
1
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Aging committee vote details

Aging Committee Vote: May 14, 2019

aye wr (1)

Co-Sponsors

S4408 (ACTIVE) - Details

See Assembly Version of this Bill:
A5627
Current Committee:
Assembly Judiciary
Law Section:
Real Property Law
Laws Affected:
Add §280-d, RP L
Versions Introduced in 2017-2018 Legislative Session:
A5821

S4408 (ACTIVE) - Summary

Requires an authorized lender which seeks to foreclose upon a reverse mortgage issued under the federal home equity conversion mortgage program to provide notice thereof to the department of financial services and to the mortgagor; directs such department to provide notice to the mortgagor of legal service organizations which may assist them with the default or foreclosure; prohibits authorized lenders from making advance payment of debts upon the mortgaged real property.

S4408 (ACTIVE) - Sponsor Memo

S4408 (ACTIVE) - Bill Text download pdf


                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4408

                       2019-2020 Regular Sessions

                            I N  S E N A T E

                             March 11, 2019
                               ___________

Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
  printed to be committed to the Committee on Aging

AN  ACT to amend the real property law, in relation to the regulation of
  default and foreclosure 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-d to read as follows:
  §  280-D. FEDERAL HOME EQUITY CONVERSION MORTGAGE DEFAULT AND FORECLO-
SURE REGULATION. 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) DEPARTMENT.  THE  DEPARTMENT  OF  FINANCIAL  SERVICES  ESTABLISHED
PURSUANT TO SECTION ONE HUNDRED TWO OF THE FINANCIAL SERVICES LAW.
  2.  IN  THE  EVENT OF A DEFAULT OR FORECLOSURE UPON A REVERSE MORTGAGE
LOAN, THE AUTHORIZED LENDER, UPON THE COMMENCEMENT  OF  THE  FORECLOSURE
PROCEEDING,  SHALL  TRANSMIT  TO  THE  DEPARTMENT PROOF THAT THE FEDERAL
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT HAS GRANTED  PRIOR  APPROVAL
TO ACCELERATE THE LOAN, PROOF OF THE DEFAULT NOTICE TO THE MORTGAGOR AND
ANY  SUCH  INFORMATION  RELATING  TO  THE LOANS AND THE MORTGAGOR AS THE
DEPARTMENT SHALL DETERMINE TO BE NECESSARY. UPON RECEIPT OF SUCH  INFOR-
MATION,  THE DEPARTMENT SHALL PROVIDE NOTICE OF AND INFORMATION RELATING
TO THE FORECLOSURE TO THE MORTGAGOR. SUCH NOTICE SHALL INCLUDE A  NOTICE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

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