Bill > A01508

This bill authorizes the creation of reverse cooperative apartment unit loans for persons 62 years of age or older. The key provisions include: - Defining the terms and types of reverse cooperative apartment unit loans, such as term payment, tenure payment, line of credit, and lump sum options. - Establishing requirements for authorized lenders, including obtaining a surety bond and maintaining a standby letter of credit and minimum capital. - Mandating lender disclosures, counseling requirements, and consumer protections, such as prohibiting mandatory binding arbitration and restricting marketing practices. - Outlining procedures for when the loan becomes due and payable, including requirements for lender notification and a face-to-face meeting process before foreclosure. - Providing for additional enforcement mechanisms, including treble damages and a complete defense to foreclosure actions for non-compliance. - Requiring the superintendent to convene a working group to study the availability of reverse mortgage counselors in New York. The overall intent of the bill is to authorize and regulate reverse cooperative apartment unit loans to provide additional options and protections for older New York residents.

Budget and Finance, Business and Industry, Housing and Urban Affairs

https://www.nysenate.gov/legislation/bills/2021/A1508