Senate Bill S2944

2021-2022 Legislative Session

Relates to enacting additional conditions on authorized lenders of reverse mortgages

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Senate Committee Aging 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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2021-S2944 (ACTIVE) - Details

Current Committee:
Senate Aging
Law Section:
Real Property Law
Laws Affected:
Amd §§280 & 280-a, RP L
Versions Introduced in Other Legislative Sessions:
2017-2018: S2758
2019-2020: S1246

2021-S2944 (ACTIVE) - Summary

Adds new conditions on authorized lenders of reverse mortgages including: delivery of a plain language notice, providing the borrower with a reverse mortgage worksheet guide and counseling, and a lapse of seven days between the reverse mortgage counseling and acceptance of the borrower's final application.

2021-S2944 (ACTIVE) - Sponsor Memo

2021-S2944 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2944
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 26, 2021
                                ___________
 
 Introduced  by  Sen.  SERINO -- 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  conditions  on
   lenders who extend reverse mortgages to persons over sixty and seventy
   years old

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraphs (g), (h) and (i) of subdivision 2 of section 280
 of the real property law, as added by chapter 613 of the laws  of  1993,
 paragraph  (i) as further amended by section 104 of part A of chapter 62
 of the laws of 2011, are amended to read as follows:
   (g) an authorized lender must deliver to the applicant, upon  applica-
 tion[,  if available,] a PLAIN LANGUAGE statement prepared by the [local
 or county] DEPARTMENT OF FINANCIAL SERVICES WHO MAY CONSULT WITH THE NEW
 YORK STATE office for the aging, WHERE APPROPRIATE, on the  advisability
 and  availability of independent counseling and information services. IN
 ADDITION TO THE PLAIN LANGUAGE NOTICE, NO REVERSE MORTGAGE LOAN APPLICA-
 TION SHALL BE TAKEN BY A LENDER UNLESS THE LENDER PROVIDES THE  PROSPEC-
 TIVE  BORROWER,  PRIOR TO HIS OR HER MEETING WITH A COUNSELING AGENCY ON
 REVERSE MORTGAGES,  WITH  A  REVERSE  MORTGAGE  WORKSHEET  GUIDE  TO  BE
 PREPARED  BY  THE  DEPARTMENT OF FINANCIAL SERVICES WHO MAY CONSULT WITH
 THE NEW YORK STATE OFFICE FOR THE AGING WHERE APPROPRIATE.  Further,  no
 reverse  mortgage  commitment  shall  be  issued by an authorized lender
 until the applicant presents, in writing, a statement that the terms  of
 the  reverse mortgage loan have been explained by an attorney, a housing
 and urban  development  certified  counselor  or  any  other  counseling
 service  as  indicated on the statement supplied by the [county or local
 office for the aging] DEPARTMENT OF FINANCIAL SERVICES or a signed affi-
 davit indicating that the applicant, although made aware of  the  impor-
 tance  of counseling and its local availability through the provision of
 such information by the authorized lender, chooses not to utilize any of
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

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