What's happening
This bill clarifies that reverse mortgage advertisements cannot falsely claim government insurance, sponsorship, or support.
Why it matters
Protects seniors from misleading advertising. By specifically targeting false claims about government backing in reverse mortgage ads, the bill aims to reduce confusion and prevent seniors from being misled into thinking these loans carry government guarantees or support.
Raises accountability for lenders and marketers. The amendment clarifies that it is not just the use of certain words, but using them "in a manner that falsely represents" government involvement that is prohibited, closing loopholes and making it easier to enforce against deceptive practices.
Supports informed financial decisions. Ensuring that advertisements accurately reflect the nature of reverse mortgage products helps consumers—particularly older adults—make better-informed choices about a significant financial commitment.
Aligns with broader consumer protection efforts. This change reinforces New York’s commitment to strong consumer protections in the financial products market, particularly for vulnerable populations such as seniors.
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Who cares
Headline styles
Ban False Reverse Mortgage Claims
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to judiciary
- Delivered to assembly
- Passed senateVote 59–2
- Ordered to third reading cal.108
- Referred to rules
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Stop Misleading Reverse Mortgages
Assembly Floor Calendar · Sponsor Helene Weinstein
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7184
IN SENATE
January 10, 2020
Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when printed to be committed to the Committee on Rules
AN ACT to amend the real property law, in relation to regulation of reverse mortgage loans issued under the federal home equity conversion mortgage for seniors program
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph (b) of subdivision 2 of section 280-b of the real property law, as added by a chapter of the laws of 2019, amending the real property law relating to regulation of reverse mortgages issued under the federal home equity conversion mortgage for seniors program, as proposed in legislative bills numbers S. 4407 and A. 5626, is amended to read as follows:
(b) use the words "government insured" or other similar language [representing] in a manner that falsely represents that reverse mortgage loans are insured, supported and sponsored by any governmental entity in any commercial, mailing, advertisement or writing relating thereto; or
§ 2. This act shall take effect on the same date and in the same manner as a chapter of the laws of 2019, amending the real property law relating to regulation of reverse mortgages issued under the federal home equity conversion mortgage for seniors program, as proposed in legislative bills numbers S. 4407 and A. 5626, takes effect.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00905-02-0
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the real property law, in relation to regulation of reverse mortgage loans issued under the federal home equity conversion mortgage for seniors program
Purpose
This is a chapter amendment that makes changes to provisions of L.2019, ch. 581.
Summary of provisions
This legislation amends the underlying chapter by adding the words "in a manner that falsely represents" to the section that prohibits the use of the term "government insured."
Justification
An amendment is needed to clarify that the term "government insured" is only prohibited where marketing falsely represents that the mortgage is government insured in order to distinguish between home equity conver- sion mortgages that are backed by the United States Department of Hous- ing and Urban Development and those that are not.
Legislative history
Chapter amendment to Chapter 581 of the Laws of 2019.
Fiscal implications
None.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.