New Law: Reverse Mortgages Regulated

On December 6, 2019, A5626 was signed into law to regulate reverse mortgages. The new law takes effect on March 5, 2020. 

A reverse mortgage means "[a] loan which is secured by a first mortgage on real property improved by a one- to four-family residence or condominium that is the residence of the mortgagor(s) the proceeds of which are advanced to the mortgagor(s) during the term of the loan in equal installments, in advances through a line of credit or otherwise, in lump sums, or through a combination thereof."

The new law has the following features at new Real Property Law section 280-b:

1. Marketing & offering of reverse mortgage loans are regulated to avoid unfair or deceptive practices;
2. Consumer protection materials are required to be included in marketing such loans & the Superintendent is authorized to promulgate rules & regulations to protect consumers;
3. Loans that pay taxes, mortgage insurance, homeowners insurance, or other property obligations must provide the borrower with periodic account statements & a required warning notice;
4. When the escrowed money for payments of obligations are depleted to 10% or less, the borrower will get a telephone & mailed notice about the borrowers obligations; 
5. Restricts lenders from paying borrowers obligations on the property (taxes, mortgage insurance, homeowners insurance, etc.) as advance payments & only permits lenders to pay when there are arrears;
6. Restricts foreclosures based on primary residence restrictions; 
7. Requires both the lender & the borrower to be represented by an attorney at the closing of the loan; 
8. Borrowers who are injured from a violation by a lender have a private right of action for treble damages & reasonable attorneys' fees; & 
9. Violating this statute by a lender works a complete defense for a borrower in a foreclosure action.

DOS Notice to Licensees in Real Estate Brokerage

Licensees just received this notice on Fair Housing. Remember - discriminating in real estate can result in fines, license revocation, and huge judgment awards in lawsuits.

Lieb School is committed to ending discrimination in housing by educating licensees about behaviors that constitute inadvertent discrimination. Lieb School - Where the Law is Followed.


Dear Licensee:

Please see attached Fair Housing Guidance Document. This email is a reminder notification of your obligation as a Real Estate Licensee to adhere to the laws prohibiting discriminatory practices.

If you have any questions pertaining to this topic, please contact us at eAccessNY@dos.ny.gov.

Division of Licensing Services
NYS Department of State

New Law: harassment of a rent regulated tenant

On December 3, 2019, the NY State crime of harassing a rent regulated tenant was expanded by way of the tenant protection act of 2019.

New Penal Law section 241.02 and amended Penal Law 241.05 have created the crimes of harassment of a rent regulated tenant in the first and second degree with the second degree being chargeable with a misdemeanor and the first degree with a felony.

These laws are effective on May 31, 2020.

Be very careful when evicting a regulated tenant - they have rights!

New Law: Discrimination Commissions

On November 25, 2019, General Municipal Law 239-o was amended to have local Commissions on Human Rights take into account all of the NYS protected classes when seeking to foster mutual respect and understanding in the community.

The protected classes are:

1. ages
2. races
3. sexual orientation
4. gender identity or expression
5. military status
6. sex
7. disability
8. predisposing genetic characteristics
9. familial status
10. marital status
11. domestic violence victim status 
12. creed
13. color
14. national origin

LIBOR / NYSAR - We just don't get it

On November 21 - we posted the blog Dear LIBOR - Lieb School has a question about your Fair Housing Courses where we advised that the statute requires that real estate licensees only be taught with "attorneys presenting legal subjects".

Now, Newsday is reporting a quote from NYSAR's CEO - "We are requiring all of our instructors that want to teach fair housing to go through a training course that will be run by an independent fair housing group before they can teach for us again,” MacKenzie said.

What?

You can't have them go through a training to become attorneys - they have to pass the Bar Exam.

Can't you all just follow the law?

Liebschool.com - where the law is followed

Pointless Legislation? RE Broker Discrimination = License Revocation

Newsday is reporting that "Sen. James Gaughran (D-Huntington) and Assemb. Kimberly Jean-Pierre (D-Babylon) introduced a bill that would expand the state’s authority to suspend or revoke a real estate agent’s license."

Did you know that a law already exists that provides for discrimination = license revocation?

19 NYCRR 175.17(b) states:
No real estate broker or salesperson shall engage in an unlawful discriminatory practice, as proscribed by any federal, state or local law applicable to the activities of real estate licensees in New York State. A finding by any federal, state or local agency or court of competent jurisdiction that a real estate broker or salesperson has engaged in unlawful discriminatory practice in the performance of licensed real estate activities shall be presumptive evidence of untrustworthiness and will subject such licensee to discipline, including a proceeding for revocation. Nothing herein shall limit or restrict the Department from otherwise exercising its authority pursuant to section 441-c of the Real Property Law.

Yes, codifying the law makes sense, but unless DOS prosecutes, what's the point?

Hey Brokers - should a license be lost if a broker is found to have discriminated? 

Just remember, not every charge of discrimination is legitimate.

Let us know your thoughts in comments.

Co-op Purchaser Application Fees Eliminated by Tenant Protection Act?

Co-ops sales may be subject to the Housing Stability and Tenant Protection Act. Forget what "our attorneys" have said - here is the go to analysis for prospective litigation on the issue. 

Read the full article by Andrew Lieb published in The Suffolk Lawyer here. 

Real Tips HR: The Timing of Terminating an Employee

Employers need to quickly fire an employee to reduce exposure. Employment experts Mordy Yankovich and Andrew Lieb share tips in this short clip.

Discrimination Victim?

NYS' new hotline is 844.862.8703

That being said, discrimination laws provide that the defendant pays your attorneys' fees - so just call any attorney who practices in the field and get representation now!!!

Dear LIBOR - Lieb School has a question about your Fair Housing Courses

Did you know that the statute, Real Property Law §441(3)(c), requires that fair housing courses be taught by attorneys only?

The statute states: It shall be taught by a qualified faculty with attorneys presenting legal subjects.

We are just wondering how Newsday's Long Island Divided reported on real estate licensees deficiencies in teaching fair housing when they aren't legally allowed to teach these courses in the first place.

Please let us know.

Liebschool.com - where the law is followed