A10745 Summary:

BILL NOA10745
 
SAME ASSAME AS S08177
 
SPONSORWeinstein
 
COSPNSRBuchwald
 
MLTSPNSR
 
Amd §1304, RPAP L
 
Relates to required prior notices; includes reverse mortgage transactions in the definition of home loan.
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A10745 Actions:

BILL NOA10745
 
08/10/2016referred to judiciary
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A10745 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A10745
 
SPONSOR: Rules (Weinstein)
  TITLE OF BILL: An act to amend the real property actions and proceedings law, in relation to required prior notices   SUMMARY OF PROVISIONS: Section 1 amends paragraph (a) of subdivision 5 of section 1304 of the Real Property Actions and Proceedings Law (RPAPL), as amended via a prior chapter, to include reverse mortgage transactions in the defi- nition of Home loans for purposes of residential foreclosures and related notices. Sections 2 and 3 amend paragraphs (a) and (b) of subdivision 6 of section 1304 of RPAPL, as amended via prior chapters, to include reverse mortgage transactions in the definition of Home loans for purposes of residential foreclosures and related notices. Section 4: Sets an immediate effective date.   JUSTIFICATION: Reverse mortgages are not currently included in the protections afforded residential foreclosures, including receipt of pre-foreclosure notices and entitlement to mandatory foreclosure settlement conferences. Practitioners have been experiencing a rise in reverse mortgage foreclo- sures. Recent media coverage has confirmed this uptick in residential foreclosures against homeowners with reverse mortgages. The coverage also highlights the exploitation by lenders of the vulnerabilities of the elderly. See "Taking out a reverse mortgage ruined my life" New York Post, July 23, 2016; and "New York Launches Reverse Mortgage Probe" New York Post, July 29, 2016. Because reverse mortgages are taken out by senior citizens, without the equal protections of our laws, elderly, and largely vulnerable homeown- ers, have few protections when faced by foreclosures filed by well-re- sourced lenders. All homeowners should have the same protections of our foreclosure laws, including those that have reverse mortgages. This measure would fill the current gap in our laws.   LEGISLATIVE HISTORY: New Bill, 2016.   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None.   EFFECTIVE DATE: Immediately, with amendments to take effect on the same date as amend- ments to the related RPAPL subdivision take effect pursuant to section 6 of Part Q of chapter 73 of the laws of 2016.
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