Skip to main content

NY Attorney General Leads Coalition To Help Protect Seniors During COVID-19

Navi Persaud
May 04, 2020
While the rest of the state remains on pause due to contain the spread of COVID-19, New York’s real estate industry has been given the green light to return to limited activity

New York Attorney General Letitia James led a bi-partisan coalition of 26 attorneys general, calling for the U.S. Department of Housing & Urban Development to help protect senior citizens from homelessness as a result of the COVID-19 pandemic. A letter to HUD Secretary Ben Carson featured a number of recommended actions that can specifically help prevent seniors with reverse mortgages from losing their homes to foreclosure, as a result of the pandemic.
 
"This pandemic is harming all Americans, but our senior citizens are especially at risk," said Attorney General James. "While HUD has taken critical first steps to pause reverse mortgage defaults and foreclosures, we must do more to anticipate and counter the long-term economic effects of this pandemic, especially since our older neighbors will remain vulnerable to COVID-19 after HUD’s immediate relief ceases. This is about ensuring seniors have access to permanent housing and don’t have to stare down the barrel of homelessness in the future."
 
HUD has taken steps to help limit reverse mortgage related foreclosures, Attorney General James and the coalition believes that there are additional steps necessary to bolster existing actions that would ensure seniors with reverse mortgages won't lose their homes due to the inability to pay for recurring charges as the crisis continues. 
 
Some of these suggestions include:
 
►Require that servicers educate their customers about available relief, so that no senior citizen slips through the cracks and loses their home.
 
►Grant servicers additional flexibility to allow reverse mortgage borrowers who need property tax assistance to seek relief from local taxing authorities. Currently, reverse mortgage holders cannot take advantage of most local tax relief programs because such programs usually create a property lien that protects the local government’s ability to collect any past-due tax revenues.
 
►Grant automatic renewals to homeowners with “at-risk” extensions. This existing HUD program prevents foreclosure for homeowners who have defaulted on their reverse mortgage, are over 80 years old, and have a critical medical condition. But unless HUD takes action, these borrowers will need an annual medical certification in order to extend that relief for another year.

►Allow servicers to add missed property tax and insurance payments to the end of a reverse mortgage loan balance, so that homeowners do not need to make up these missed payments as soon as a forbearance period ends.
 
►Prepare now to extend relief beyond 12 months, if needed, to protect senior homeowners affected by COVID-19.
 
Click here to read more about Attorney General James' coalition and their push to protect seniors during the COVID-19 pandemic.

 


 

Published
May 04, 2020
Embrace Home Loans Hires Castiglioni As VP Of Market Growth

Former Wells Fargo exec also will manage growing national condo program

Industry News
Sep 23, 2021
Guaranteed Rate Opens New Branch In Southwestern Michigan

Guaranteed Rate expanded its presence in Southwester Michigan, after opening a new branch in St. Joseph

Industry News
Sep 22, 2021
Chinese Property Giant Evergrande Falters, Threatening U.S. Investors

On Monday, investors across three continents dumped their stocks, mainly out of fear that the world’s two largest governments — the United States and China — would undercut the beginnings of a global economic recovery. 

Industry News
Sep 22, 2021
Compass Mortgage Expands In Four Additional States

Compass Mortgage is now licensed in Virginia, Washington, North Carolina and South Carolina.

Industry News
Sep 22, 2021
Enact Holdings Completes IPO

Genworth Financial Inc. announced the completion of the initial public offering for its subsidiary Enact Holdings Inc.

Industry News
Sep 21, 2021
Offerpad Expands Into Kansas City, St. Louis

Tech-Enabled Platform For Real Estate Transactions Now In 20 Markets

Industry News
Sep 20, 2021