On behalf of its members, NRMLA submitted a letter to the sponsor of New York Senate Bill 2559 (SB 2559), opposing the bill as drafted.
Why it matters: New York Senate Bill 2559 creates a new disclosure that provides notice of a borrower’s rights and responsibilities under the HECM program.
- NRMLA notes that seniors already receive numerous required disclosures under federal and state law, which can overwhelm and confuse many consumers.
- One more state-mandated disclosure is not needed and would only serve to add to that confusion, says NRMLA.
Go deeper: NRMLA also opposes SB 2559 because the absence of the summary sheet would render the related HECM null and void, no exceptions.
- “As a result, if the summary sheet is inadvertently lost or misplaced, the underlying loan would be null and void. In our view, this penalty for a potentially minor infraction is both unnecessary and draconian,” says NRMLA.
What’s next: NRMLA will continue to monitor the bill’s progress and report any noteworthy updates in future issues of Weekly Report. Members can view NRMLA’s comment letter by logging into NRMLAonline.org.
