New York Codes, Rules and Regulations
Title 3 - BANKING
Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT
Part 79 - Reverse Mortgage Loans
Section 79.7 - Termination of reverse mortgage loans
Current through Register Vol. 46, No. 12, March 20, 2024
(a) Reverse mortgage loans may be terminated by the mortgagee solely in the event of any of the following:
(b) The mortgagor, his or her authorized designee or estate shall notify the mortgagee, in writing, immediately upon learning of the occurrence of any event listed in subdivision (a) of this section.
(c) Within 30 business days of learning of the occurrence of any event listed in subdivision (a) of this section, the mortgagee shall notify the mortgagor and their authorized designee, in writing, of such occurrence, along with information on the right to cure. The mortgagee must then allow the mortgagor 45 calendar days to cure. A mortgagee may only terminate a reverse mortgage loan if the mortgagor fails to cure any termination event within such 45-calendar day period.
(d) All lenders must prepare a form entitled "Lender's Limited Waiver of the Right of Foreclosure." This document shall, clearly and conspicuously, identify every event, as provided for in this section that would give the mortgagee authority to terminate the loan, and shall be provided to and signed by the mortgagor at the closing of every loan. The lender shall furnish a copy of the executed form to every mortgagor at closing and shall keep the original form on file for the life of the loan, and thereafter in accordance with applicable statutes.
(e) A mortgagor may designate no more than two persons or entities to whom the mortgagee shall send copies of all notices that this section requires the mortgagee to send to the mortgagor. It shall be the obligation of the mortgagor and any authorized designee to provide the mortgagee with current mailing information for any person designated to receive such additional notice.
(f) In the event that a mortgagee seeks to foreclose on a reverse mortgage loan solely on the basis of any event listed in subdivisions (a)(3) or (a)(4) of this section, the mortgagee shall make efforts to verify the mortgagor' principal place of residence and, if, during the verification process, no responses are received in response to mailings relating thereto, such mortgagee shall cause a telephone call to be made to the mortgagor, or, if the mortgagor is unreachable by telephone, either an authorized designee (s) or, in the event that the mortgagor has no authorized designee, then the local or county office for the aging and an in person visit to be made to the mortgagor at the mortgaged real property. During such visit, the mortgagee or its agent shall provide clear information as to who they are, that the visit pertains to the reverse mortgage loan, the reason for the home visit, and the telephone number to call for further information. The mortgagee must wait at least 30-days following such visit, in addition to any additional time or notice requirements specified by any other provision of law, before initiating a foreclosure action on the basis of any event listed in subdivisions (a)(3) and (a)(4) of this section. If any mortgagor contacts the mortgagee and provides proof of compliance with the relevant residency requirements after such visit but before the commencement of a foreclosure action, the mortgagee shall be barred from initiating such foreclosure action unless and until such time as a new event, as outlined in subdivision (a) of this section, occurs.