2023 New York Laws › RPP - Real Property › Article 8 - Conveyances and Mortgages › 280-D - Federal Home Equity Conversion Mortgage Default and Foreclosure Regulation.

§   280-d.   Federal  home  equity  conversion  mortgage  default  and
foreclosure regulation.  1.  For  the  purposes  of  this  section,  the
following terms shall have the following meanings:
(a)  Reverse  mortgage  loan.  A  reverse  mortgage loan as defined in
section two hundred eighty of this article,  which  is  issued  in  this
state  pursuant  to  the  home  equity  conversion  mortgage for seniors
program  operated  by  the  federal  Department  of  Housing  and  Urban
Development.
(b)  Authorized lender. An authorized lender as defined in section two
hundred eighty of this  article  authorized  to  make  reverse  mortgage
loans, as defined in this section.
(c)  Department.  The  department  of  financial  services established
pursuant to section one hundred two of the financial services law.
2. In addition to the  requirements  of  section  one  thousand  three
hundred  four  of  the  real  property  actions  and proceedings law, an
authorized lender shall include in the notice required by  such  section
any additional information required by the department. The department is
hereby  authorized  to promulgate rules and regulations requiring that a
notice issued pursuant to subdivision  one-a  of  section  one  thousand
three  hundred  four  of  the  real property actions and proceedings law
include additional information  necessary  to  explain  the  mortgagor's
rights in a foreclosure process.
3.  In  addition  to  the  requirements  of section one thousand three
hundred six of the real  property  actions  and  proceedings  law,  each
filing with the department that relates to a reverse mortgage loan shall
include  an  affirmative statement that the lender, assignee or mortgage
loan servicer either received final approval from the federal Department
of Housing and Urban Development to accelerate the reverse mortgage loan
that is the subject of the filing or that  no  such  approval  from  the
federal Department of Housing and Urban Development is required.
4.   Authorized   lenders  shall  comply  with  all  applicable  laws,
regulations and any guidelines  issued  by  the  federal  Department  of
Housing  and  Urban Development on loss mitigation for reverse mortgages
and shall maintain policies on loss mitigation  that  shall  be  updated
when  necessary  to  ensure  compliance  with all applicable rules. Each
authorized lender shall maintain loan level  data  and  loss  mitigation
data  for  all loans associated with a repayment plan including, but not
limited to:
(a) monthly surplus income;
(b) term of repayment plan;
(c) amount of monthly repayment plan;
(d) due date of each monthly payment;
(e) when a mortgagor experiences a hardship; and
(f) the nature of the hardship.
5. Any person who has been injured by reason of any violation of  this
section may bring an action in his or her own name to recover treble his
or  her  actual  damages,  plus  the  prevailing  plaintiff's reasonable
attorney's fees.
6. The requirements of this section shall be conditions  precedent  to
commencing an action to foreclose upon a home equity conversion mortgage
which  is  subject  to  the  provisions  of this section, and failure to
comply therewith shall be a complete defense to a foreclosure action.