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:

(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.