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 Oct. 26, 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
Green check means up to date. Up to date

Accessed:
Oct. 26, 2024

Last modified:
Apr. 16, 2021

§ 280-D’s source at nysenate​.gov

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