On May 21, 2019, the New York legislature passed a bill that, if signed into law by the Governor, will create a "mini-UDAAP" specific to reverse mortgages and impose additional consumer protection requirements on the reverse mortgage industry.
Key provisions of the bill:
- Prohibit unfair and deceptive practices in connection with marketing or offering reverse mortgages;
- Require lenders to provide notice to mortgagors of their duty to pay certain property related expenses when equity in the real property is low or depleted;
- Prohibit foreclosure on mortgaged property based on the failure of the mortgagor to live on the property, until an inspection has been made at the property; and
- Establish a right of action with treble damages and reasonable attorney's fees for violations of such provisions.
Click here to read more to prepare to comply with these requirements.
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