New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 79 - Reverse Mortgage Loans › Section 79.11 - Prohibited conduct and administrative penalties

Current through Register Vol. 46, No. 28, July 10, 2024
(a) A mortgagee or broker, as applicable, may
				not:
(1) make a R PL 280, R PL 280 -a or R PL
				280 -b loan in the State of New York without having a reverse mortgage program
				that has been approved by the superintendent;
(2) make a reverse mortgage loan to a
				mortgagor who has not been provided with the counseling acknowledgment prior to
				counseling or has not completed the counseling acknowledgment prior to
				commitment in accordance with sections
				79.5(e)
				 and
				79.9(a)(4) 
				of this Part;
(3) make any false
				promise to influence, persuade or induce a consumer to sign a reverse mortgage
				loan application or documents;
(4)
				pressure or coerce a consumer to sign a reverse mortgage loan application or
				reverse mortgage loan documents by misrepresenting or omitting material
				information about the terms of the reverse mortgage loan;
(5) discourage a consumer in a reverse
				mortgage loan transaction from seeking or obtaining independent legal counsel
				or legal advice or discouraging inclusion of family members from counseling
				sessions or from otherwise participating in the process;
(6) fail to make any disclosure to a consumer
				required by and at the time specified by any applicable state or federal law,
				regulation or directive;
(7) accept
				telephone applications;
(8) request
				or accept a confession of judgment; or
(9) steer, direct, recommend, or otherwise
				encourage a consumer to seek the services of any particular housing counselor,
				or encourage a consumer not to seek the services of any particular housing
				counselor.
(10) make any false or
				misleading statement or classification of a reverse mortgage product being
				offered including, but not limited to any statement that the product offered:
(a) is a government benefit or is not a
				loan;
(b) has been endorsed by
				Federal Housing Administration or Housing and Urban Development; and
(c) contains any features or limitations that
				are inconsistent with state or federal rules and requirements;
(11) make any false or misleading
				statement or classification of any advertisement, including, but not limited
				to, use of the words "public service announcement;"
(12) make any false or misleading statement
				about default or foreclosure including, but not limited to, any statement that
				a mortgagor can "never lose" their home or there is "no risk" to a mortgagor's
				home;
(13) make any false or
				misleading statement about "fixed" rates and payments including, but not
				limited to, using the word "fixed" in an advertisement for an adjustable rate
				reverse mortgage loan;
(14) make
				any false or misleading statement about monthly payments or the overall cost of
				the product including, but not limited, to any statement that a:
(a) mortgagor will "never make monthly
				payments" or not be required to repay a reverse mortgage loan "during your
				lifetime;"
(b) mortgagor will
				"never owe more than the value of your home;" and
(c) reverse mortgage loans provide payments
				"for life;"
(15) create
				a false sense of urgency by providing any misleading or inaccurate information
				about limits on the availability of a reverse mortgage product or any feature
				thereof;
(16) make any false or
				misleading use of the name of the consumer's current financial institution,
				including but not limited to, using such name in an advertisement that is not
				sent by or on behalf of the consumer's current financial institution;
(17) provide any information about material
				terms or required disclosures partially in a foreign language, while providing
				information about other material terms or required disclosures only in English;
				and
(18) make any false or
				misleading statement about government entitlements, sponsorships or insurance
				including, but not limited to, statements which may give a reverse mortgage
				applicant the impression that their financial interests are government insured
				or otherwise protected.