The proposed bill seeks to create a state-level summary for FHA-backed Home Equity Conversion Mortgages, outlining borrowers' rights and responsibilities. It mandates lenders provide this summary before closing a loan. While NRMLA supports consumer awareness, they argue this bill duplicates existing disclosures in New York's regulations without adding clarity. Past legislation attempts faced similar issues, prompting NRMLA's continued opposition, emphasizing that while consumer protection is crucial, the potential risks of nullifying loans are unacceptable.
"The proposed bill duplicates existing disclosure requirements under New York's Code of Rules and Regulations, adding confusion rather than enhancing consumer protection."
"Our opposition to this legislation regarding the disclosure is not against consumer protections. We believe every reverse mortgage client should be fully aware of their obligations."
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