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Can you summarize NYCL BNK 6-H?
Short Title; Definitions; Miscellaneous Provisions > Reverse mortgage loans authorized
Short Summary
This legal document authorizes authorized lenders, as defined by section two hundred eighty or two hundred eighty-a of the real property law, to offer reverse mortgage loans. The reverse mortgage loans must conform to the provisions of section two hundred eighty or two hundred eighty-a of the real property law and the rules and regulations promulgated by the superintendent of financial services. Alternatively, the loans can also conform to the requirements of the federal housing administration’s home equity conversion mortgage insurance demonstration program. The document defines ‘reverse mortgage’ as the mortgage, deed of trust, or other security instrument relating to a particular reverse mortgage loan transaction. It specifies that the proceeds of a reverse mortgage are not considered as income for the purposes of section four hundred sixty-seven of the real property tax law. However, monies used to repay a reverse mortgage may not be deducted from income, and any interest or dividends realized from the investment of reverse mortgage proceeds shall be considered income.
Whom does it apply to?
Authorized lenders
What does it govern?
Reverse mortgage loans
What are exemptions?
None mentioned
What are the Penalties?
None mentioned
Jurisdiction
New York