Makes certain changes applicable to the foreclosure of reverse mortgages, made by chapter 55 of the laws of 2017, take effect immediately and continue past the expiration of certain provisions of law.
STATE OF NEW YORK
________________________________________________________________________
1992--A
2017-2018 Regular Sessions
IN SENATE
January 11, 2017
___________
Introduced by Sen. KLEIN -- read twice and ordered printed, and when
printed to be committed to the Committee on Housing, Construction and
Community Development -- recommitted to the Committee on Housing,
Construction and Community Development in accordance with Senate Rule
6, sec. 8 -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee
AN ACT to amend the real property actions and proceedings law and the
civil practice law and rules, in relation to foreclosure upon a
reverse mortgage
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph (a) of subdivision 6 of section 1304 of the real
2 property actions and proceedings law, as amended by section 6 of part Q
3 of chapter 73 of the laws of 2016, is amended to read as follows:
4 (a) (1) "Home loan" means a loan, including an open-end credit plan,
5 [other than a reverse mortgage transaction,] in which:
6 (i) The borrower is a natural person;
7 (ii) The debt is incurred by the borrower primarily for personal,
8 family, or household purposes;
9 (iii) The loan is secured by a mortgage or deed of trust on real
10 estate improved by a one to four family dwelling, or a condominium unit,
11 in either case, used or occupied, or intended to be used or occupied
12 wholly or partly, as the home or residence of one or more persons and
13 which is or will be occupied by the borrower as the borrower's principal
14 dwelling; and
15 (iv) The property is located in this state.
16 (2) A home loan shall include a loan secured by a reverse mortgage
17 that meets the requirements of clauses (i) through (iv) of subparagraph
18 one of this paragraph.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00004-03-8
S. 1992--A 2
1 § 2. Subdivision (a) of rule 3408 of the civil practice law and rules,
2 as amended by section 3 of part Q of chapter 73 of the laws of 2016, is
3 amended to read as follows:
4 (a) [In] 1. Except as provided in paragraph two of this subdivision,
5 in any residential foreclosure action involving a high-cost home loan
6 consummated between January first, two thousand three and September
7 first, two thousand eight, or a subprime or nontraditional home loan, as
8 those terms are defined under section thirteen hundred four of the real
9 property actions and proceedings law, in which the defendant is a resi-
10 dent of the property subject to foreclosure, the court shall hold a
11 mandatory conference within sixty days after the date when proof of
12 service is filed with the county clerk, or on such adjourned date as has
13 been agreed to by the parties, for the purpose of holding settlement
14 discussions pertaining to the relative rights and obligations of the
15 parties under the mortgage loan documents, including, but not limited
16 to: [1.] (i) determining whether the parties can reach a mutually agree-
17 able resolution to help the defendant avoid losing his or her home, and
18 evaluating the potential for a resolution in which payment schedules or
19 amounts may be modified or other workout options may be agreed to
20 including, but not limited to, a loan modification, short sale, deed in
21 lieu of foreclosure, or any other loss mitigation option; or [2.] (ii)
22 whatever other purposes the court deems appropriate.
23 2. (i) Paragraph one of this subdivision shall not apply to a home
24 loan secured by a reverse mortgage where the default was triggered by
25 the death of the last surviving borrower unless:
26 (A) the last surviving borrower's spouse, if any, is a resident of the
27 property subject to foreclosure; or
28 (B) the last surviving borrower's successor in interest, who, by
29 bequest or through intestacy, owns, or has a claim to the ownership of
30 the property subject to foreclosure, and who was a resident of such
31 property at the time of the death of such last surviving borrower.
32 (ii) The superintendent of financial services may promulgate such
33 rules and regulations as he or she shall deem necessary to implement the
34 provisions of this paragraph.
35 § 3. This act shall take effect immediately and shall be deemed to
36 have been in full force and effect on and after April 20, 2017; provided
37 that:
38 (a) the amendments to subdivision 6 of section 1304 of the real prop-
39 erty actions and proceedings law, made by section one of this act, shall
40 not affect the expiration and reversion of such subdivision pursuant to
41 subdivision a of section 25 of chapter 507 of the laws of 2009, as
42 amended, and shall be deemed repealed therewith; and
43 (b) the amendments to subdivision (a) of rule 3408 of the civil prac-
44 tice law and rules, made by section two of this act, shall take effect
45 on the same date and in the same manner as section 3 of part Q of chap-
46 ter 73 of the laws of 2016 takes effect.