What's happening
This bill removes the exemption for reverse mortgage transactions from the definition of "home loan" in foreclosure notice requirements.
Why it matters
Expands foreclosure notice protections to reverse mortgage borrowers. , meaning seniors and others who use reverse mortgages must now receive the same pre-foreclosure warning notices as traditional mortgage holders.
May reduce the risk of abrupt or confusing foreclosure actions. for vulnerable homeowners who previously weren’t entitled to advance notice, giving them more time to seek help or remedy the situation.
Could impact the reverse mortgage industry. by increasing compliance costs and possibly affecting loan servicing practices, as lenders must now follow the same notification protocols as for standard home loans.
Addresses concerns about fairness and transparency. in the foreclosure process, ensuring that all homeowners, regardless of mortgage type, are informed of potential loss of their homes and are given a chance to respond.
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Who cares
Headline styles
Expand Foreclosure Notice Rules
Plain English, a few words. Used as the page title.
Sponsors
24 Co-sponsors
- David Buchwald
- Erik Dilan
- Walter T. Mosley
- Ellen C. Jaffee
- Peter Abbate
- William Colton
- Luis R. Sepúlveda
- Sandy Galef
- Kenneth Zebrowski
- Latoya Joyner
- Felix Ortiz
- James Skoufis
- Jose Rivera
- Michael Blake
- Deborah Glick
- Jeffrey Dinowitz
- Robert C. Carroll
- Anthony D'Urso
- Phil Steck
- Alicia Hyndman
- Diana Richardson
- Maritza Davila
- Steven Otis
- Kevin Cahill
History
- Enacting clause stricken
- Recommitted to judiciary
- Ordered to third reading cal.85
- Starred on calendar
- Advanced to third reading cal.8
- Reported
- Referred to judiciary
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1266
2017-2018 Regular Sessions
IN ASSEMBLY
January 11, 2017
Introduced by M. of A. WEINSTEIN -- read once and referred to the Committee on Judiciary
AN ACT to amend the real property actions and proceedings law, in relation to required prior notices
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph (a) of subdivision 6 of section 1304 of the real property actions and proceedings law, as amended by section 6 of part Q of chapter 73 of the laws of 2016, is amended to read as follows:
(a) "Home loan" means a loan, including an open-end credit plan, [other than a reverse mortgage transaction,] in which:
(i) The borrower is a natural person;
(ii) The debt is incurred by the borrower primarily for personal, family, or household purposes;
(iii) The loan is secured by a mortgage or deed of trust on real estate improved by a one to four family dwelling, or a condominium unit, in either case, used or occupied, or intended to be used or occupied wholly or partly, as the home or residence of one or more persons and which is or will be occupied by the borrower as the borrower's principal dwelling; and
(iv) The property is located in this state.
§ 2. Paragraph (b) of subdivision 6 of section 1304 of the real property actions and proceedings law, as amended by section 7 of part Q of chapter 73 of the laws of 2016, is amended to read as follows:
(b) "Home loan" means a home loan, including an open-end credit plan, [other than a reverse mortgage transaction,] in which:
(i) The principal amount of the loan at origination did not exceed the conforming loan size that was in existence at the time of origination for a comparable dwelling as established by the federal national mortgage association;
(ii) The borrower is a natural person;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00004-02-7
A. 1266 2
(iii) The debt is incurred by the borrower primarily for personal, family, or household purposes;
(iv) The loan is secured by a mortgage or deed of trust on real estate upon which there is located or there is to be located a structure or structures intended principally for occupancy of from one to four families which is or will be occupied by the borrower as the borrower's principal dwelling; and
(v) The property is located in this state.
§ 3. This act shall take effect immediately; provided, however, that the amendments to subdivision 6 of section 1304 of the real property actions and proceedings law made by section one of this act shall be subject to the expiration and reversion of such subdivision pursuant to subdivision a of section 25 of chapter 507 of the laws of 2009, as amended, when upon such date the provisions of section two of this act shall take effect.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
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