N.Y. Real Property Law 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:
Terms Used In N.Y. Real Property Law 280-D
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgage loan: A loan made by a lender to a borrower for the financing of real property. Source: OCC
- Mortgagor: The person who pledges property to a creditor as collateral for a loan and who receives the money.
- Precedent: A court decision in an earlier case with facts and law similar to a dispute currently before a court. Precedent will ordinarily govern the decision of a later similar case, unless a party can show that it was wrongly decided or that it differed in some significant way.
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
(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 § 102 of the financial services law.
2. In addition to the requirements of § 1304 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 § 1304 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 § 1306 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.