New York passed a bill repealing certain exemptions for reverse mortgages under the state’s foreclosure laws. Under existing law, reverse mortgage transactions are exempt from New York’s foreclosure provisions pertaining to notices of default, mandatory settlement conferences and certificates of merit. Under the bill, reverse mortgages are no longer exempt from these provisions and lenders and servicers must comply with the notice of default, mandatory settlement conference and certificate of merit provisions in connection with the foreclosure of a reverse mortgage. The bill also mandates the form of the notice of default provided to borrowers of a reverse mortgage. The bill went into effect April 16, 2018.
See New York State Assembly website for the full text of the Statute:
http://assembly.state.ny.us/leg/?default_fld=&leg_video=&bn=A09508&term=&Summary=Y&Text=Y
