- Summary
- Actions
- Committee Votes
- Floor Votes
- Memo
- Text
- LFIN
- Chamber Video/Transcript
A05626 Summary:
BILL NO | A05626 |
  | |
SAME AS | SAME AS S04407 |
  | |
SPONSOR | Weinstein (MS) |
  | |
COSPNSR | Mosley, Abbate, Colton, Cymbrowitz, Galef, Zebrowski, Joyner, Ortiz, Glick, Dinowitz, Carroll, D'Urso, Steck, Hyndman, Richardson, Aubry, Seawright, Abinanti, Wallace, Cahill, Lupardo, Burke, Taylor, Cruz, Gottfried |
  | |
MLTSPNSR | Cook, Englebright, Griffin, Nolan, Simon, Thiele |
  | |
Add §280-b, RP L | |
  | |
Provides for the regulation of reverse mortgages that are issued under the federal home equity conversion mortgage program; prohibits the deceptive advertising and issuance of such mortgages; requires that independent counseling be provided to applicants for such mortgages; requires lenders to provide notice of duty of mortgagor to pay certain property related expenses when equity in the real property is low or depleted; prohibits foreclosure on mortgaged property based on the failure of the mortgagor to live on the property, until an inspection has been made at the property; establishes a proved right of action with treble damages for violations of such provisions. |
A05626 Actions:
BILL NO | A05626 | |||||||||||||||||||||||||||||||||||||||||||||||||
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02/14/2019 | referred to judiciary | |||||||||||||||||||||||||||||||||||||||||||||||||
04/30/2019 | reported referred to codes | |||||||||||||||||||||||||||||||||||||||||||||||||
05/07/2019 | reported | |||||||||||||||||||||||||||||||||||||||||||||||||
05/09/2019 | advanced to third reading cal.301 | |||||||||||||||||||||||||||||||||||||||||||||||||
05/15/2019 | passed assembly | |||||||||||||||||||||||||||||||||||||||||||||||||
05/15/2019 | delivered to senate | |||||||||||||||||||||||||||||||||||||||||||||||||
05/15/2019 | REFERRED TO AGING | |||||||||||||||||||||||||||||||||||||||||||||||||
05/21/2019 | SUBSTITUTED FOR S4407 | |||||||||||||||||||||||||||||||||||||||||||||||||
05/21/2019 | 3RD READING CAL.741 | |||||||||||||||||||||||||||||||||||||||||||||||||
05/21/2019 | PASSED SENATE | |||||||||||||||||||||||||||||||||||||||||||||||||
05/21/2019 | RETURNED TO ASSEMBLY | |||||||||||||||||||||||||||||||||||||||||||||||||
11/26/2019 | delivered to governor | |||||||||||||||||||||||||||||||||||||||||||||||||
12/06/2019 | signed chap.581 | |||||||||||||||||||||||||||||||||||||||||||||||||
12/06/2019 | approval memo.27 |
A05626 Committee Votes:
Dinowitz | Aye | Palumbo | Aye | ||||||
Titus | Excused | Montesano | Aye | ||||||
Lavine | Aye | Goodell | Nay | ||||||
Zebrowski | Excused | Norris | Aye | ||||||
Weprin | Aye | Walsh | Aye | ||||||
Braunstein | Aye | Byrnes | Aye | ||||||
Simotas | Aye | ||||||||
Quart | Aye | ||||||||
Buchwald | Aye | ||||||||
Steck | Aye | ||||||||
Seawright | Aye | ||||||||
Joyner | Aye | ||||||||
Abinanti | Aye | ||||||||
Wright | Aye | ||||||||
Wallace | Aye | ||||||||
Lentol | Aye | Ra | Aye | ||||||
Schimminger | Aye | Giglio | Aye | ||||||
Pretlow | Aye | Montesano | Aye | ||||||
Cook | Aye | Morinello | Aye | ||||||
Cymbrowitz | Aye | Palumbo | Aye | ||||||
O'Donnell | Aye | Garbarino | Aye | ||||||
Lavine | Aye | ||||||||
Perry | Aye | ||||||||
Zebrowski | Aye | ||||||||
Abinanti | Aye | ||||||||
Weprin | Aye | ||||||||
Mosley | Absent | ||||||||
Hevesi | Excused | ||||||||
Fahy | Aye | ||||||||
Seawright | Aye | ||||||||
Rosenthal | Aye | ||||||||
Go to top
A05626 Floor Votes:
Yes
Abbate
Yes
Crespo
ER
Gantt
Yes
LiPetri
Yes
Perry
Yes
Simon
Yes
Abinanti
Yes
Crouch
Yes
Garbarino
Yes
Lupardo
Yes
Pheffer Amato
Yes
Simotas
ER
Arroyo
Yes
Cruz
Yes
Giglio
Yes
Magnarelli
Yes
Pichardo
Yes
Smith
Yes
Ashby
Yes
Cusick
Yes
Glick
Yes
Malliotakis
Yes
Pretlow
Yes
Smullen
Yes
Aubry
Yes
Cymbrowitz
Yes
Goodell
Yes
Manktelow
Yes
Quart
Yes
Solages
Yes
Barclay
ER
Davila
Yes
Gottfried
Yes
McDonald
Yes
Ra
Yes
Stec
Yes
Barnwell
Yes
De La Rosa
Yes
Griffin
Yes
McDonough
Yes
Raia
Yes
Steck
Yes
Barrett
Yes
DenDekker
Yes
Gunther
Yes
McMahon
Yes
Ramos
Yes
Stern
Yes
Barron
Yes
DeStefano
Yes
Hawley
Yes
Mikulin
Yes
Raynor
Yes
Stirpe
Yes
Benedetto
Yes
Dickens
Yes
Hevesi
Yes
Miller B
Yes
Reilly
Yes
Tague
ER
Bichotte
Yes
Dilan
Yes
Hunter
Yes
Miller MG
Yes
Reyes
Yes
Taylor
ER
Blake
Yes
Dinowitz
Yes
Hyndman
Yes
Miller ML
ER
Richardson
Yes
Thiele
Yes
Blankenbush
Yes
DiPietro
Yes
Jacobson
Yes
Montesano
Yes
Rivera
ER
Titus
Yes
Brabenec
Yes
D'Urso
Yes
Jaffee
Yes
Morinello
Yes
Rodriguez
ER
Vanel
Yes
Braunstein
Yes
Eichenstein
Yes
Jean-Pierre
Yes
Mosley
Yes
Romeo
Yes
Walczyk
Yes
Bronson
Yes
Englebright
Yes
Johns
Yes
Niou
Yes
Rosenthal D
Yes
Walker
Yes
Buchwald
Yes
Epstein
Yes
Jones
Yes
Nolan
Yes
Rosenthal L
Yes
Wallace
Yes
Burke
Yes
Fahy
Yes
Joyner
Yes
Norris
Yes
Rozic
Yes
Walsh
Yes
Buttenschon
Yes
Fall
Yes
Kim
ER
O'Donnell
Yes
Ryan
Yes
Weinstein
Yes
Byrne
Yes
Fernandez
Yes
Kolb
Yes
Ortiz
Yes
Salka
Yes
Weprin
Yes
Byrnes
Yes
Finch
Yes
Lalor
Yes
Otis
Yes
Santabarbara
Yes
Williams
Yes
Cahill
Yes
Fitzpatrick
Yes
Lavine
Yes
Palmesano
Yes
Sayegh
Yes
Woerner
Yes
Carroll
Yes
Friend
Yes
Lawrence
Yes
Palumbo
Yes
Schimminger
Yes
Wright
Yes
Colton
Yes
Frontus
Yes
Lentol
Yes
Paulin
Yes
Schmitt
Yes
Zebrowski
Yes
Cook
Yes
Galef
Yes
Lifton
Yes
Peoples-Stokes
Yes
Seawright
Yes
Mr. Speaker
‡ Indicates voting via videoconference
A05626 Text:
Go to top STATE OF NEW YORK ________________________________________________________________________ 5626 2019-2020 Regular Sessions IN ASSEMBLY February 14, 2019 ___________ Introduced by M. of A. WEINSTEIN, MOSLEY, ABBATE, COLTON, CYMBROWITZ, GALEF, ZEBROWSKI, JOYNER, ORTIZ, GLICK, DINOWITZ, CARROLL, D'URSO, STECK, HYNDMAN, RICHARDSON, AUBRY, SEAWRIGHT, ABINANTI, WALLACE, CAHILL, LUPARDO, BURKE, TAYLOR -- Multi-Sponsored by -- M. of A. COOK, ENGLEBRIGHT, NOLAN, SIMON, THIELE -- read once and referred to the Committee on Judiciary AN ACT to amend the real property law, in relation to regulation of reverse mortgages issued under the federal home equity conversion mortgage for seniors program The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The real property law is amended by adding a new section 2 280-b to read as follows: 3 § 280-b. Federal home equity conversion mortgage regulation. 1. For 4 the purposes of this section, the following terms shall have the follow- 5 ing meanings: 6 (a) Reverse mortgage loan. A reverse mortgage loan as defined in 7 section two hundred eighty of this article, which is issued in this 8 state pursuant to the home equity conversion mortgage for seniors 9 program operated by the federal Department of Housing and Urban Develop- 10 ment. 11 (b) Authorized lender. An authorized lender as defined in section two 12 hundred eighty of this article authorized to make reverse mortgage 13 loans, as defined in this section. 14 (c) Superintendent. The superintendent of financial services estab- 15 lished pursuant to section two hundred two of the financial services 16 law. 17 2. No authorized lender or any other party or entity shall in any 18 manner, in the marketing or offering of reverse mortgage loans, engage 19 in any unfair or deceptive practices in connection with the marketing or 20 offering of reverse mortgage loans, and, additionally, shall not: EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD00905-01-9A. 5626 2 1 (a) use the words "public service announcement" in any commercial, 2 mailing, advertisement or writing relating thereto; or 3 (b) use the words "government insured" or other similar language 4 representing that reverse mortgage loans are insured, supported and 5 sponsored by any governmental entity in any commercial, mailing, adver- 6 tisement or writing relating thereto; or 7 (c) represent that any such loan is other than a commercial product. 8 3. (a) Every authorized lender or its agent shall provide, with any 9 solicitation for reverse mortgage products mailed to a physical address 10 within the state, supplemental consumer protection materials the content 11 and form of which shall be specified by the superintendent or his or her 12 designee. 13 (b) Every authorized lender shall provide each applicant or potential 14 applicant for a reverse mortgage loan with the telephone number and 15 internet website address provided by the federal Department of Housing 16 and Urban Development for the purposes of acquiring home equity conver- 17 sion mortgage counseling. 18 (c) The superintendent is authorized to promulgate such rules and 19 regulations as he or she shall deem necessary to implement the 20 provisions of this subdivision. 21 4. (a) Reverse mortgages secured by residential real property within 22 the state shall be subject to the rules and regulations of the federal 23 Department of Housing and Urban Development relating to the home equity 24 conversion mortgage program. 25 (b) For all borrowers whose tax payments, mortgage insurance payments, 26 homeowners insurance payments, or payments stemming from any other prop- 27 erty obligation or obligations are administered by the authorized lend- 28 er, and where these payments are derived from the proceeds of the mort- 29 gage, the authorized lender shall provide on the borrower's periodic 30 account statement the current balance remaining in the borrower's line 31 of credit or lifetime expectancy set aside, the projected annual proper- 32 ty charges for that year, and a notice which reads in at least twelve 33 point type: "YOUR TAXES AND INSURANCE ARE CURRENTLY BEING PAID BY THE 34 PROCEEDS OF THIS MORTGAGE. THE FUNDS THAT HAVE BEEN SET ASIDE ARE 35 EXPECTED TO BE EXHAUSTED AFTER THE TAX AND INSURANCE PAYMENTS OF (SPECI- 36 FY EXPECTED MONTH AND YEAR). IF THE PROCEEDS OF THIS MORTGAGE CANNOT PAY 37 THE TAXES AND INSURANCE, YOU MUST PAY THESE OBLIGATIONS OR YOUR HOME MAY 38 BE LOST TO FORECLOSURE. PLEASE NOTE THAT AS TAX AND INSURANCE AMOUNTS 39 CAN VARY YOU SHOULD CONTINUE TO REVIEW THIS NOTICE FOR CHANGES." 40 (c) An authorized lender shall, by telephone and first class mail, 41 inform and provide notice to a mortgagor when his or her home equity 42 line of credit or life expectancy set aside is depleted to ten percent 43 or less of its value. Such notice shall inform the mortgagor of his or 44 her obligations relating to such real property including, but not limit- 45 ed to, mortgage insurance, homeowners insurance and real property taxes 46 previously paid by such line of credit or life expectancy set aside, and 47 that such obligations must continue to be paid when the home equity line 48 of credit or life expectancy set aside is depleted. Such notice shall 49 use plain language, written in a clear and coherent manner using words 50 with common and every day meanings, appropriately divided and captioned 51 by its various sections. 52 (d) Each authorized lender shall, by telephone and first class mail, 53 inform and provide notice to a mortgagor when his or her home equity 54 line of credit or life expectancy set aside is depleted. Such notice 55 shall inform the mortgagor of his or her obligations relating to the 56 mortgaged real property including, but not limited to, mortgage insur-A. 5626 3 1 ance, homeowners insurance and real property taxes, and that the home 2 equity line of credit or life expectancy set aside will no longer pay 3 these obligations. Such notice shall use plain language, written in a 4 clear and coherent manner using words with common and every day mean- 5 ings, appropriately divided and captioned by its various sections. 6 5. No authorized lender shall make an advance payment for any obli- 7 gation arising from mortgaged real property. Furthermore, in the event a 8 mortgagor defaults upon the payment of mortgage insurance premium, home- 9 owners' insurance premium or real property tax related to the mortgaged 10 property, the authorized lender may only pay those premiums and/or taxes 11 which are in arrears. 12 6. In the event that an authorized lender seeks to foreclose on a 13 reverse mortgage loan on the basis that the mortgaged real property is 14 no longer the primary residence of or occupied by the mortgagor, if 15 during the verification of the mortgagor's primary residence and/or 16 occupancy no responses are received in response to mailings relating 17 thereto, such lender shall cause a telephone call to be made to the 18 mortgagor, or if the mortgagor is unreachable by telephone, a designated 19 third-party specified by the mortgagor, and an in person visit to be 20 made to the mortgagor at the mortgaged real property to be made prior to 21 the commencement of any foreclosure proceeding. During such visit, the 22 authorized lender or its agent shall provide clear information as to who 23 they are, that the visit pertains to the reverse mortgage, the reason 24 for the home visit, and the telephone number to call for further infor- 25 mation. The authorized lender must wait at least thirty days following 26 such visit, in addition to any additional time or notice requirements 27 specified by any other provision of law, before initiating a foreclosure 28 action on the basis that the mortgaged real property is no longer the 29 primary residence of the mortgagor. If the mortgagor contacts the 30 authorized lender and provides proof of residence or occupancy after 31 such visit but before the commencement of a foreclosure action, the 32 authorized lender shall be barred from initiating such foreclosure 33 action. Furthermore, no authorized lender shall charge a mortgagor any 34 fee for any such visit and inspection. This prohibition on the imposi- 35 tion of fees shall include any and all inspections conducted by the 36 authorized lender to verify the status of the reverse mortgage, or any 37 suspected or actual default condition. 38 7. Both the authorized lender and the mortgagor shall be represented 39 by an attorney or attorneys at the time of the closing on the reverse 40 mortgage, and each such party shall have at least one attorney present 41 to conduct the closing. 42 8. Any person who has been injured by reason of any violation of this 43 section or any violation of the rules and regulations of the federal 44 Department of Housing and Urban Development relating to the home equity 45 conversion mortgage program may bring an action in his or her own name 46 to recover treble his or her actual damages, plus the prevailing 47 plaintiff's reasonable attorney's fees. 48 9. Compliance with the provisions of this section shall be conditions 49 precedent to commencing an action to foreclose upon a home equity 50 conversion mortgage which is subject to the provisions of this section, 51 and the failure to comply therewith shall be a complete defense to a 52 foreclosure action. 53 § 2. This act shall take effect on the ninetieth day after it shall 54 have become a law; provided, that, effective immediately the superinten- 55 dent of financial services is authorized and directed to amend, add 56 and/or repeal any rules and regulations necessary to implement theA. 5626 4 1 provision of this act within 180 days after this act shall have become a 2 law.