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This entry was published on 2014-09-22
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SECTION 6-H
Reverse mortgage loans authorized
Banking (BNK) CHAPTER 2, ARTICLE 1
§ 6-h. Reverse mortgage loans authorized. Notwithstanding any
inconsistent provision of law, in addition to any other power exercised
by it, every authorized lender, as defined by section two hundred eighty
or two hundred eighty-a of the real property law, shall have the power
to offer reverse mortgage loans (1) which conform to the provisions of
section two hundred eighty or two hundred eighty-a of the real property
law and the rules and regulations promulgated by the superintendent of
financial services; or (2) which conform to the requirements of the
federal housing administration's home equity conversion mortgage
insurance demonstration program for as long as such program exists as
provided for in section 1715Z-20 of title 12 of the United States Code.
"Reverse mortgage" shall mean the mortgage, deed of trust or other
security instrument relating to a particular reverse mortgage loan
transaction.

The proceeds of a reverse mortgage shall not be considered as income
for the purposes of section four hundred sixty-seven of the real
property tax law; provided, however, that monies used to repay a reverse
mortgage may not be deducted from income, and provided additionally that
any interest or dividends realized from the investment of reverse
mortgage proceeds shall be considered income.