Bill Text: NY S01992 | 2017-2018 | General Assembly | Amended

Bill Title: 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.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2018-01-26 - PRINT NUMBER 1992A [S01992 Detail]

Download: New_York-2017-S01992-Amended.html

                STATE OF NEW YORK
                               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.

        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.