Bill Text: NY S08177 | 2015-2016 | General Assembly | Introduced

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Bill Title: Relates to required prior notices; includes reverse mortgage transactions in the definition of home loan.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2016-08-12 - REFERRED TO RULES [S08177 Detail]

Download: New_York-2015-S08177-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          8177
                    IN SENATE
                                     August 12, 2016
                                       ___________
        Introduced  by  Sen.  KLEIN  -- read twice and ordered printed, and when
          printed to be committed to the Committee on Rules
        AN ACT to amend the  real  property  actions  and  proceedings  law,  in
          relation to required prior notices
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Paragraph (a) of subdivision 5 of section 1304 of the  real
     2  property  actions  and proceedings law, as amended by chapter 507 of the
     3  laws of 2009, is amended to read as follows:
     4    (a) "Home loan" means a  loan,  including  an  open-end  credit  plan,
     5  [other than a reverse mortgage transaction,] in which:
     6    (i) The borrower is a natural person;
     7    (ii)  The  debt  is  incurred  by the borrower primarily for personal,
     8  family, or household purposes;
     9    (iii) The loan is secured by a mortgage  or  deed  of  trust  on  real
    10  estate improved by a one to four family dwelling, or a condominium unit,
    11  in  either  case,  used  or occupied, or intended to be used or occupied
    12  wholly or partly, as the home or residence of one or  more  persons  and
    13  which is or will be occupied by the borrower as the borrower's principal
    14  dwelling; and
    15    (iv) The property is located in this state.
    16    §  2. Paragraph (a) of subdivision 6 of section 1304 of the real prop-
    17  erty actions and proceedings law, as amended by section 6 of part  Q  of
    18  chapter 73 of the laws of 2016, is amended to read as follows:
    19    (a)  "Home  loan"  means  a  loan,  including an open-end credit plan,
    20  [other than a reverse mortgage transaction,] in which:
    21    (i) The borrower is a natural person;
    22    (ii) The debt is incurred by  the  borrower  primarily  for  personal,
    23  family, or household purposes;
    24    (iii)  The  loan  is  secured  by  a mortgage or deed of trust on real
    25  estate improved by a one to four family dwelling, or a condominium unit,
    26  in either case, used or occupied, or intended to  be  used  or  occupied
    27  wholly  or  partly,  as the home or residence of one or more persons and
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15978-01-6
        S. 8177                             2
     1  which is or will be occupied by the borrower as the borrower's principal
     2  dwelling; and
     3    (iv) The property is located in this state.
     4    §  3. Paragraph (b) of subdivision 6 of section 1304 of the real prop-
     5  erty actions and proceedings law, as amended by section 7 of part  Q  of
     6  chapter 73 of the laws of 2016, is amended to read as follows:
     7    (b)  "Home loan" means a home loan, including an open-end credit plan,
     8  [other than a reverse mortgage transaction,] in which:
     9    (i) The principal amount of the loan at origination did not exceed the
    10  conforming loan size that was in existence at the  time  of  origination
    11  for  a  comparable dwelling as established by the federal national mort-
    12  gage association;
    13    (ii) The borrower is a natural person;
    14    (iii) The debt is incurred by the  borrower  primarily  for  personal,
    15  family, or household purposes;
    16    (iv) The loan is secured by a mortgage or deed of trust on real estate
    17  upon  which  there  is  located or there is to be located a structure or
    18  structures intended principally for occupancy of from one to four  fami-
    19  lies  which  is  or  will  be occupied by the borrower as the borrower's
    20  principal dwelling; and
    21    (v) The property is located in this state.
    22    § 4. This act shall take effect immediately; provided, however, that
    23    (a) the amendments to subdivision 6 of section 1304 of the real  prop-
    24  erty  actions  and proceedings law made by section two of this act shall
    25  take effect on the same date and in the same manner as section 6 of part
    26  Q of chapter 73 of the laws of 2016 takes effect; and
    27    (b) the amendments to subdivision 6 of section 1304 of the real  prop-
    28  erty  actions  and proceedings law made by section two of this act shall
    29  be subject to the expiration and reversion of such subdivision  pursuant
    30  to  subdivision  a  of section 25 of chapter 507 of the laws of 2009, as
    31  amended, when upon such date the provisions of section three of this act
    32  shall take effect.