Provides for reverse mortgage loans on co-op apartments

2 Co-sponsors

• William J. Larkin Jr.
• Catharine Young

BILL NUMBER:S1743

Title of bill

An act to amend the real property law, in relation to reverse mortgage loans

Purpose or general idea of bill

To increase the minimum age allowed for reverse mortgage loans from age sixty to age sixty-two, permit a reverse mortgage on a cooperative apartment and delete term reverse mortgage loans.

Summary of specific provisions

This bill will amend the Real Property Law to increase the minimum age allowed for reverse mortgage loans from age sixty to age sixty-two, permit a reverse mortgage on a cooperative apartment and delete term reverse mortgage loans.

Justification

Since the FHA reverse mortgage program and the reverse mortgage industry have evolved since the original bill was drafted in the early 1980s and amended in 1994, a number of aspects of the original and amended statute no longer apply, have become outdated and have caused inconsistent interpretations by the New York Title Insurance industry and by the Department of Taxation and Finance. The changes reflect realistic practices that exist in New York and across the country. The bill will reduce the costs to seniors that wish to obtain a reverse mortgage. It will no longer discriminate against the many seniors that live in cooperative apartments, as it permits such seniors to obtain a reverse mortgage

Prior legislative history

S.4061A 2007-08 -- Referred to Aging. S.2035 2009-10 -- Referred to Aging, Advanced to Third Reading

Fiscal implications

Minimal.

Effective date

This act shall take effect immediately.