Working to Prevent HECM Foreclosures

first_img About Author: David Wharton Data Provider Black Knight to Acquire Top of Mind 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago July 27, 2020 1,394 Views Foreclosures HECM Reverse Mortgage 2020-07-27 David Wharton in Daily Dose, Featured, Foreclosure, Government, Journal, News The Best Markets For Residential Property Investors 2 days ago  Print This Post Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Home / Daily Dose / Working to Prevent HECM Foreclosures David Wharton, Managing Editor at the Five Star Institute, is a graduate of the University of Texas at Arlington, where he received his B.A. in English and minored in Journalism. Wharton has over 16 years’ experience in journalism and previously worked at Thomson Reuters, a multinational mass media and information firm, as Associate Content Editor, focusing on producing media content related to tax and accounting principles and government rules and regulations for accounting professionals. Wharton has an extensive and diversified portfolio of freelance material, with published contributions in both online and print media publications. Wharton and his family currently reside in Arlington, Texas. He can be reached at [email protected] Working to Prevent HECM Foreclosures Demand Propels Home Prices Upward 2 days agocenter_img Share Save Previous: DS5: Staying Engaged With Employees During COVID-19 Next: Black Knight Pays $1.8B for Optimal Blue The New York legislature has passed a bill that will require lenders to notify the state’s Department of Financial Services (DFS) and mortgagors of impending foreclosure actions against homeowners with reverse mortgages.The bill—which cleared the State House as A5627 and the State Senate as S4408—will add a new layer of DHS regulation to reverse mortgages issued under the Home Equity Conversion Mortgage (HECM) program sponsored by the Federal Housing Administration (FHA) and the Department of Housing and Urban Development (HUD).The bill will also mandate that lenders operating in New York engage in loss mitigation as defined by DFS prior to foreclosure and also prevents lenders from making advance payments on mortgage insurance or tax liabilities.“Lenders must now notify the Department of Financial Services when engaging in foreclosure proceedings against a borrower, and must also provide proof to the department that HUD has granted prior approval to accelerate the loan, proof of the default and notice to the borrower, and any other information required by the department,” the bill stated.Furthermore, the bill requires lenders operating within the state to engage in loss mitigation as defined by DFS before foreclosing, and “prevents lenders from making advance payments on mortgage insurance or tax liabilities,” the bill reads.These new requirements will be conditions that must be observed prior to the institution of a foreclosure action on a HECM loan, and will be enforceable by, “providing treble damages and attorney’s fees to prevailing plaintiffs,” the bill reads.The bill will now be passed to Gov. Andrew Cuomo, who has not publicly stated whether he will sign or veto the legislation. The governor has previously sent mixed signals on reverse mortgage-related bills: last December, he vetoed legislation that would have opened the state’s cooperate apartment market to reverse mortgages, but he also signed a bill that required reverse mortgage lenders to provide supplemental consumer protection materials to prospective borrowers while added new restrictions on lenders regarding their payment of insurance premiums and property taxes. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Tagged with: Foreclosures HECM Reverse Mortgage Demand Propels Home Prices Upward 2 days ago Subscribe Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Related Articles Sign up for DS News Daily The Week Ahead: Nearing the Forbearance Exit 2 days agolast_img

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