N.Y. Real Property Law Section 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 § 280 (Reverse mortgage loans for persons sixty years of age or older)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 § 280 (Reverse mortgage loans for persons sixty years of age or older)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 Financial Services Law § 102 (Department of financial services)section one hundred two of the financial services law.

2.

In addition to the requirements of Real Property Actions & Proceedings Law § 1304 (Required prior notices)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 Real Property Actions & Proceedings Law § 1304 (Required prior notices)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 Real Property Actions & Proceedings Law § 1306 (Filing with superintendent)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.

Source: Section 280-D — Federal home equity conversion mortgage default and foreclosure regulation, https://www.­nysenate.­gov/legislation/laws/RPP/280-D (updated Apr. 16, 2021; accessed Jun. 15, 2024).

240
Definitions and use of terms
240‑B
Certain conveyances authorized
240‑C
Joint tenancy severance
241
Ancient conveyances abolished
242
Disclosure prior to the sale of real property
243
Grant of fee or freehold
244
When grant takes effect
245
Estate which passes by grant or devise
246
Certain deeds declared grants
247
Conveyance by tenant for life or years of greater estate than possessed
248
Effect of conveyance where property is leased
249
Covenants in mortgages
251
Covenants not implied
252
Lineal and collateral warranties abolished
253
Construction of covenants in grants of freehold interests
254
Construction of clauses and covenants in mortgages and bonds or notes
254‑A
Right of election of mortgagee in certain cases
254‑B
Limitation on late charges
254‑C
Right to a copy of real property appraisals and consumer reports in certain cases
254‑D
Fees by mortgagee for direct payment of real property taxes by mortgagor prohibited
255
Construction of grant of appurtenances and of all the rights and estate of grantor
256
Construction of grant in executor’s or trustee’s deed of appurtenances, and of the estate of testator and grantor
257
Covenants bind representatives of grantor and mortgagor and inure to the benefit of whom
258
Short forms of deeds and mortgages
259‑C
Provision in lease of real property for waiver of trial by jury in actions for personal injury or property damage
260
Lands adversely held may be conveyed or mortgaged
261
Maintenance of telegraph or other electric wires raises no presumption of grant
265
Fraudulent intent, question of fact
265‑A
Home equity theft prevention
265‑B
Distressed property consulting contracts
266
Rights of purchaser or incumbrancer for valuable consideration protected
267
Conveyances with power to revoke, determine or alter
268
Disaffirmance of fraudulent act by executor and others
269
When remainderman may pay interest owed by life tenant
270
Powers of courts of equity not abridged
271
Construction of covenants in mortgages on leases of real property and bonds or notes
272
Construction of grant of appurtenances, and all of the rights and estate of the mortgagor
273
What form of mortgage on lease of real property
274
Transfers and mortgages of interest in decedents’ estates
274‑A
Certificate of principal amount unpaid on mortgages of real property
275
Certificate of discharge of mortgage required
276
Effect of certain easements on the right to invest in mortgages
277
Modification and extension of mortgage investment
277‑A
Powers of fiduciaries and others holding guaranteed mortgages or mortgage investments
278
Exchange of mortgage investment
278‑A
Sale or exchange of certain real property or mortgage investments therein authorized
279
Graduated payment mortgage
280
Reverse mortgage loans for persons sixty years of age or older
280‑A
Reverse mortgage loans for persons seventy years of age or older
280‑B
Federal home equity conversion mortgage regulation
280‑D
Federal home equity conversion mortgage default and foreclosure regulation
281
Credit line mortgage
282
Mortgagor’s right to recover attorneys’ fees in actions or proceedings arising out of foreclosures of residential property

Accessed:
Jun. 15, 2024

Last modified:
Apr. 16, 2021

§ 280-D’s source at nysenate​.gov

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