The Foreclosure Prevention, Tenant Protection and Property Maintenance Act of 2009
Chapter 507 of the Laws of New York, 2009

January 16, 2010

On December 15, 2009, Governor Paterson signed into law comprehensive legislation that the New York State Legislature had passed in November, referred to as the Foreclosure Prevention, Tenant Protection and Property Maintenance Act of 2009.  The law extends protections previously in law for homeowners with subprime and nontraditional loans to all homeowners in danger of losing their homes. 1  The law also guarantees notification and rights for tenants in foreclosed properties, adds a requirement that lenders maintain abandoned properties, and allows for shared appreciation, among other things.  Provisions of the new law are effective December 15, 2009, unless otherwise noted below. 2

Provisions to Help Home, Condo and Cooperative Owners in Default and Foreclosure

Ninety-day notice for homes and condominiums (amends RPAPL § 1304)

The new law expands the requirement under RPAPL § 1304, providing that as of January 14, 2010, 3 a lender,4 assignee or a mortgage loan servicer must send a notice to all borrowers with a home loan 5 at least 90 days prior to the commencement of a legal action.  (Previously, only borrowers with “high-cost,” “subprime” and “nontraditional” home loans had to be sent this notice. 6)  A new provision requires the notice to be sent in a separate envelope from any other mailing or notice. The notice is the same as set forth in the Foreclosure Prevention and Responsible Lending Act of 2008 (“2008 Act”) and must be sent to the borrower by registered or certified mail, as well as by first-class mail, to the last known address of the borrower and if different, to the residence that is subject to the mortgage. The date the notice is mailed is the date that the notice is considered to be given.  

Specific and personalized information required:  The exact language required for the notice is set forth in the law. 7  The notice must be in fourteen-point font and must state that as of a specific date, the home loan is “X” number of days in default and that the homeowner is at risk of losing their home.  The notice must also state that the homeowner can save their home by making a payment of “X” amount of dollars by a specific date, or may consider another option if they are having financial difficulty. The notice must set forth the telephone number of the lender or mortgage servicer, where the homeowner can contact them directly.  The notice also must inform the borrower that it will be more beneficial to take immediate action as it is probable that there will be fewer options available the longer the homeowner waits.  If the matter is not resolved in 90 days the lender or mortgage servicer can take action against the homeowner, or sooner, if the property is no longer the mortgagor’s primary residence.

Referrals to specified counseling services:  One of the primary purposes of the notice is to refer borrowers to agencies that assist homeowners in doing work-outs with lenders, whether it be a loan modification, an easier payment plan, or a period of loan forbearance. The Division of Housing and Community Renewal and the Banking Department must make available on their websites the listing by region of such agencies.  The lender or mortgage servicer must attach a list of at least five government approved housing counseling agencies in the homeowner’s geographic region that provide free or low-cost counseling. 8  The notice must also direct the homeowner to call the Banking Department’s Toll-Free Helpline or go to their website for more information. 

Exemptions from the notice requirement: The 90-day period does not apply to mortgagors in bankruptcy, or if the borrower does not occupy that residence as their principal dwelling. The notice and the ninety-day period must be provided only once per year to the same borrower for the same loan.

Remedies: A defendant may raise a violation of this section as a defense to a foreclosure action. 

Ninety-day notice and special provision for coops

Ninety-day notice (adds UCC § 9-611(f)):Cooperative interests were not specifically addressed in the 2008 Act.  Disposition of a secured interest of a coop is set forth in the Uniform Commercial Code (UCC).  The law adds a requirement that as of January 14, 2010, a secured party of a residential cooperative interest 9 must send the debtor a notice not less than 90 days prior to the date of the disposition of the cooperative interest, similar to the notice requirement to homeowners pursuant to RPAPL § 1304. The notice must be on different colored paper and include language and format set forth in the law, directing borrowers to non-profit service providers, and the Banking Department for information. 10  The Banking Department must post on its website or otherwise make readily available, the name and contact information of government or non-profit agencies who may be able to provide assistance, and must maintain a toll-free helpline. 

Accepting a cooperative interest in full satisfaction of debt (amends UCC 9-620(a) and adds 9-620(h)): Special provisions are added for cooperative interests to allow a secured party to accept a cooperative interest in full satisfaction of the debtor’s obligation. 11  Any proposal sent by a secured party to do so must be accompanied by the 90 day notice (as set forth in UCC § 9-611(f)), unless such notice was previously sent.  The debtor may also make such a proposal.  Acceptance of a proposal by either the debtor or secured party must be an authenticated record.  This provision is effective as of January 14, 2010. 

Filing with the Superintendent of the Banking Department (adds RPAPL § 1306)

Filing requirement:  Starting February 13, 2010, lenders, assignees and servicers are required to electronically file with the superintendent of the New York State Banking Department all 90 day notices sent to home, condo and coop owners (pursuant to RPAPL § 1304 and UCC § 9-611(f)) within 3 business days of mailing. Complaints served pursuant to RPAPL must contain an affirmation by the plaintiff that the filing was timely made. 

Form:  The superintendent shall prescribe the form on which the notice shall be filed, which must also include at a minimum, the name, address, last known telephone number of the borrower, and the amount claimed due and owing on the mortgage, and other information to enable the superintendent to ascertain the type of loan at issue. The superintendent may request additional information to figure out whether a borrower may benefit from foreclosure prevention services.  The Banking Department, with the assistance of the commissioner of DHCR, has 180 days from enactment to develop the electronic database to receive filings.  

Purpose and use: The purpose of this filing is to allow the superintendent to monitor the extent of foreclosure filings on a statewide basis, to analyze loan types that are subject to the 90 day notice, and to direct government and non-profit foreclosure assistance to at-risk borrowers.  To that end, the law allows the superintendent to share information contained in their database with housing counseling agencies designated by DHCR, as well as with other state agencies, “for the purpose of coordinating or securing help for borrowers at risk of foreclosure.” 12  The superintendent also is authorized to set rules and regulations as necessary to implement the purposes of this section.  

Mandatory Settlement Conferences

Conferences extended to all (amends CPLR 3408(a)):  Effective February 13, 2010,13 the law extends the requirement for courts to hold a mandatory settlement conference to all borrowers with home loans 14 in which the defendant resides in the property (not just those with “high-cost,” “subprime” or “nontraditional” home loans as initially established in the 2008 Act).  The conference must be held within 60 days from the date when proof of service is filed with the clerk, or on such adjourned date as agreed to by the parties.

Pending foreclosure actions: In pending foreclosure actions on home loans (that are not “high-cost,” or “subprime,” already subject to a mandatory settlement conference requirement) where the final order of judgment has not been rendered as of effective date of the conferences, the court shall notify the defendant that they have a right to request a settlement conference.

New requirements (adds CPLR 3408(d), (e), (f), (g), and (h)):  Though the stated purpose of holding settlement discussions remains the same, 15 a requirement has been added that the parties “shall negotiate in good faith to reach a mutually agreeable resolution, including a loan modification, if possible.” 16  Another new provision prohibits either party from charging the other for any cost, including attorneys’ fees, for participation in the settlement conferences. 17  Plaintiffs are also newly required to file a notice of discontinuance and vacatur of lis pendens within 150 days after a settlement agreement or loan modification is executed. 18 

Two additional requirements pertain to the courts.  First, the court must “promptly” send a notice to both parties advising them of the time, place and purpose of the conference, and advising them of the documents they should bring. 19  The notice should be in a form prescribed by the Office of Court Administration (OCA), or by the administrative judge of the judicial district (at OCA’s discretion). Second, the court must send either a copy of the request for judicial intervention (RJI) or contact information for the defendant to housing counseling agencies designated by DHCR in the judicial district so that they may inform the homeowner of foreclosure prevention services and options available to them. 20

These provisions also are effective February 13, 2010.

OCA rulemaking and reporting:  Within 90 days of the enactment of this legislation, OCA must promulgate rules to ensure the “just and expeditious processing of settlement conferences.”  21  Such rules shall provide those overseeing conferences the necessary authority to make sure the law is followed and the parties negotiate in good faith, including allowing OCA the ability to grant additional authority to courts to sanction egregious behavior.  OCA is required to make annual reports (on November 1) to the governor and prescribed members of the legislature regarding the effectiveness of the settlement conferences.22

Other provisions remain the same: The ability of the court to appoint counsel in a case in which a defendant appears at the conference pro se, and the requirement that the plaintiff appear in person or by a representative with authority to settle the case either in person or by phone, remain the same. 23

Provisions to Help Tenants in Foreclosed Properties

Notice to tenants within 10 days of serving foreclosure on mortgagor (amends RPAPL §1303):  Effective January 14, 2010, the foreclosing party must deliver a notice, prescribed by the law, to tenants within ten (10) days of the service of the summons and complaint to the mortgagor. 24  The notice must be on colored paper and on its own page, and informs the tenant that the building where their apartment is located is subject to a foreclosure proceeding, and that they may have the right to stay in occupancy for the remainder of their lease term, of if they have no written lease, for ninety days after they are informed of the name and contact information for the new owner by the person or entity who takes title (the “successor in interest”), and advised of their rights under the new RPAPL §1305. Tenants in 1 to 4 unit buildings must be sent the notice individually by first-class mail to the tenant’s address at the property if the tenant’s identity is known to the plaintiff, or to “occupant” if the identity is not known. For buildings with five or more dwelling units, the notice must be posted outside each exit and entrance. 

Limited right of continued occupancy and notice thereof (adds RPAPL § 1305):  Tenants 25 in properties in foreclosure are granted the right to remain in the property for ninety (90) days from the date they receive a notice from a successor in interest in the property, or until the end of their lease, whichever is greater.  An exception exists that limits a tenant’s right of occupancy to ninety (90) days (for a single unit) if the successor in interest who acquires title intends to occupy a single unit as his or her primary residence and if the unit is not subject to a federal or state statutory system of subsidy or other federal or state statutory scheme.  An owner of the residential real property is specifically excluded from the protections of this section.  Tenancy continues under same terms and conditions of lease as were in effect at time of entry of judgment, or transfer of ownership including the obligation to pay “fair market rent,” defined as “rent for a unit of residential real property of similar size, location and condition.” 26

Any successor in interest must send a written notice to all tenants informing them of their rights, as well as the name and address of the new owner.  Anyone who becomes a successor in interest subsequent to the sending of the 90 day notice must provide tenants with its name and address.  The provision does not affect the successor’s right to evict a tenant, as provided for in law (after the greater of the expiration of the 90 day time period or at the end of the lease term), or earlier if the tenant does not pay rent pursuant to the lease.

The law specifically states that these rights are in addition to any other rights of a tenant under law, including rights of tenants not named in foreclosure actions, rights of tenants whose tenancy is subsidized by a government entity, or the rights of tenants whose tenancy is subject to rent control, rent stabilization or federal statutory schemes. 

This section applies to actions in which the judgment of foreclosure and sale (under RPAPL §1351) is issued on or after January 14, 2009.

Corresponding amendments to RPAPL §§ 221 and 713(5):  Critical corresponding amendments are made to the two alternative RPAPL procedures that authorize a court to issue an order to dispossess a tenant residing in a property in foreclosure or that has been foreclosed.  These parallel amendments provide that under either of the two mechanisms, the dispossess order may only be issued by the court “subject to the rights and obligations” (namely the limited right for continued occupancy) contained in the new § 1305.  This section applies to actions in which the judgment of foreclosure and sale (under RPAPL §1351) is issued on or after January 13, 2010.   

Duty to Maintain Foreclosed Properties (adds RPAPL § 1307)

Duty and rights: Effective April 14, 2010, a plaintiff who obtains a judgment of foreclosure and sale involving residential real property that is vacant, or becomes vacant post-judgment, or is abandoned by the mortgagor but occupied by a tenant, 27 must maintain the property until ownership is transferred (either through the closing of title in foreclosure, or otherwise) and the deed is recorded.  “Maintain” means keeping the property in compliance with specified provisions of Chapter 3 of Property Maintenance Code of New York State, 28 and if occupied by a tenant, in a safe and habitable condition.

The prevailing plaintiff in the foreclosure has the right under this section to peaceably enter the property for the purposes of inspections, repairs and maintenance, or as otherwise provided by court.  If a tenant occupies the property, the plaintiff must give the tenant seven days notice unless emergency repairs are needed.   

The requirements do not apply if the mortgagor is in bankruptcy, unless an order lifting or removing the automatic stay of the foreclosure sale has been issued, or if a receiver of such property is serving.  This section also does not apply to municipal and governmental agencies if they hold a mortgage subordinate to one or more mortgages on the property. 

Remedies:  The law specifically gives the municipality in which the property is located, a tenant lawfully in possession, and a condominium board of managers or homeowners association (if such premise is subject to rules and regulations of an association), a right of action to enforce this duty in court, after seven days notice to the plaintiff.  Damages can include costs incurred to maintain the property.  Nothing in this section extinguishes or diminishes in any way existing obligations to maintain, or liabilities for failure to do so, of the mortgagor, or a receiver of rents and profits appointed in an action to foreclose a mortgage, to maintain the property. 29

Shared Appreciation (amends Banking Law § 6-f(1))

Banking Law § 6-f(1) is amended to allow a lender or holder of a residential mortgage loan or cooperative apartment who reduces principal balance in order to assist a borrower to avoid foreclosure, to share in the appreciation of the market value of the property or cooperative shares, by way of a written agreement (a “shared appreciation agreement”).  The appreciated value shall run from the date of the reduction to the time the property is sold, and shall be measured as the difference between the gross sales proceeds (net of any reasonable real estate commission) of the sale of the property and the value of the property at the time the closing of the shared appreciation agreement. 30  The current value of the property must be determined by a NY licensed real estate appraiser.  In such conditional agreements, the lender shall receive the lesser of the amount of such reduction in principal plus interest at the rate set forth in the note for the balance, or 50% of the appreciation. 

Notice requirements:  Shared appreciation agreements must include a legend at the top, indicating that the borrower is giving away some of any future increase in the value of the home. 31  A separate notice must be given to the homeowner along with the shared appreciation agreement.  Apart from the heading, 32 notice language is not specifically prescribed in the law but the content must include a statement that the lender is entitled to a share of future appreciation, a recommendation that the borrower seek counseling from a lawyer, housing counseling or tax advisor regarding tax and other potential implications, a statement regarding potential impact on refinancing and any other information required by the Banking Department board.  A list of at least five HUD-certified mortgage counselors in the county where the property is located must be provided to the homeowner, as well. 33

Amendments to “High-cost” and “Subprime” Lending Provisions (amends Banking Law §§ 6-l and 6-m)

Limited sections of Banking Law §§ 6-l and 6-m are amended.  No substantive provisions were added or deleted.  Technical changes also were made throughout the laws such as adding titles to certain provisions.  All changes are effective immediately, unless other stated below.

“Home loan” definition amended:  The definition of “home loan” which appears in both Banking Law §§ 6-l and 6-m, applying to “high-cost” and “subprime” home loans, is amended to exclude loans made or fully or partially guaranteed by the State of New York Mortgage Agency (SONYMA), and to include 1 to 4 family dwellings, condominium units, and cooperative units 34 that are or will be occupied by the borrower as their principal dwelling.  The principal amount of loans covered under the definition are the limits set by the federal national mortgage association but include applicable special limits for jumbo mortgages.  

“Subprime” definition amended:  The definition of “subprime home loan” is slightly revised to include loans in which the initial interest rate or the fully-indexed rate at the time of the good faith estimate is provided (rather than at time of application, as previously provided), whichever is higher, exceeds the threshold limits, as set forth already in law.  Construction loans and home equity lines of credit are still excluded from the definition unless the loan is converted into a permanent loan.  

Change to yield spread premium provision:  A minor change is made to the limitation on yield spread premiums under Banking Law §§ 6-l and 6-m to require mortgage brokers to disclose their compensation within three days of application, rather than at the time of application, as previously provided. 

“Fully indexed rate” definition: The definition of “fully indexed rate” under Banking Law § 6-m is changed for adjustable rate loans to equal the annual percentage rate (APR) on the date the good faith estimate is provided plus the margin to be added after the expiration of any introductory period or periods.  For fixed rate loans, the “fully indexed rate” is the APR on the loan calculated at the time the lender issues its commitment (disregarding any introductory rates and interest rate caps that limit how quickly the contractual rate may be reached).  

Ability to repay:  The standard lenders must apply when determining whether a borrower has the ability to repay a “subprime” home loan is amended to require the lender to evaluate the payment based on the higher of the initial interest rate or the fully indexed rate, without considering any initial discounted rate.

Banking Law § 590 and Manufactured Homes

Definition of “mortgage loan” (amends Banking Law § 590(1)(a)):  Banking Law § 590 regards the licensing of mortgage loan originators.  Effective February 13, 2009, the definition of “mortgage loan” is amended slightly to add loans secured by a deed of trust (as well as by a mortgage, certificate of stock or other evidence of ownership in, and proprietary lease from a corporation or partnership formed for the purpose of cooperative ownership, as previously existed in law).  The amendment also allows the banking board to determine by regulation, whether a loan secured by a security interest in a manufactured home should be included.

Rules and regulations (adds Banking Law § 590(3)(c) and re-letters paras. (c) and (d):  The banking department is given authority to promulgate rules and regulations under this article regarding the origination, sale or servicing of manufactured home loans.

Distressed Property Consultants

Upfront payment prohibited (adds Banking Law § 595-a(5)):  Prohibits a “distressed property consultant” (defined in RPL § 265-b) from charging or accepting any payment for real property consulting services before the full completion of such service.

Attorneys, brokers and loan officers (amends RPL § 265-b):  The 2008 Act created regulations for “distressed property consultants.”  Attorneys were excluded from the definition of “distressed property consultants.”  The definition is amended to exclude attorneys only “when the attorney is directly providing consulting services to a homeowner in the course of his or her regular legal practice.” 35  The 2008 Act also excluded mortgage brokers and loan services (as defined in Banking Law 12-D), however, the new law prohibits mortgage brokers and loan officers from taking any upfront fees in conjunction with activities constituting the business of a distressed property consultant. 36

Mortgage loan servicers (amends Banking Law § 590(2)(b) and (b-1)) 

A technical amendment is made, to comport with the 2008 Act, to include mortgage loan servicers in the list of entities that must be registered with the Banking Department.  A provision also is added to allow the superintendent of the Banking Department to require registration and notifications to be made through Nationwide Mortgage Licensing System and Registry and describing how registration fees for mortgage loan servicers are to be collected and considered. 

Residential Mortgage Fraud

Definition amended (amends Penal Law Article § 187.00):  The 2008 Act codified “residential mortgage fraud.”  The definition of “residential mortgage loan” is amended to include a loan modification (in addition to loan, agreement to extend credit and refinancing), and in the case of cooperative ownership, to include a proprietary lease from a corporation or partnership.  Minor technical changes (wording) are made, as well. 

Limitation on prosecution (adds Penal Law Article § 187.01):  A new section is added to prohibit prosecution of anyone who applies for a residential mortgage loan who intends to occupy the residential property unless the individual acts as an accessory to the residential mortgage fraud. Minor technical amendments are made, as well. 

General provisions

A final section states:  “Nothing in this act shall be construed as restricting any rights or causes of action the parties to a mortgage, lease or other agreement concerning real property may otherwise have under New York Law.” 37  A severability clause is included, as well. 38

For more information, contact Kirsten Keefe in the Empire Justice Center Albany office at kkeefe@empirejustice.org

Footnotes

1  This law was passed in addition to the allocation of $25 million from federal stimulus dollars to assist homeowners, though reduced 12.5% ($3,125,000) to $21,875,000 by the Deficit Reduction Plan in December 2009.  The funding will go to non-profit agencies, including housing counselors and legal services, to provide direct assistance to homeowners.  The Department of Housing and Community Renewal (DHCR) is charged with dispersing the funds.  
2  The full text of the legislation can be downloaded off of the Assembly or Senate websites by searching for “S66007” or “A40007,” or by going to <http://public.leginfo.state.ny.us/menugetf.cgi> and searching for Chapter 507 of the Laws of New York, 2009.
3  The 90 day notice provision sunsets five years from the effective date.
4  “Lender” means a mortgage banker as defined in Banking Law § 590.1(f) or an exempt organization as defined is Banking Law § 590.1(e).  Private lenders who make under five mortgage loans in a year are not obligated to obtain a license under Banking Law  § 590.1 to be a mortgage banker.
5  “Home loan” is defined as a loan, including an open-end credit plan in which the borrower is a natural person, the debt is incurred primarily for personal family, or household purposes, and the loan is secured by a mortgage or deed of trust on real estate improved by a one to four family dwelling, or a condominium unit, to be used or intended to be used or occupied wholly or partly, as the home or residence of one or more persons and which is or will be occupied by the borrower as their principal dwelling, but does not include a reverse mortgage transaction. RPAPL § 1304(5)(a).
6  Definitions for “subprime” and “nontraditional” home loans were removed from this section.  The 2008 Act referenced the definition of “high-cost” home loans as set forth in Banking Law § 6-l for purposes of this section and therefore, the definition of “high-cost” home loan was not removed.
7  The notice is available on Empire Justice Center’s website at <www.empirejustice.org>.
8  Agencies will include U.S. Dept of Housing and Urban Dev. Approved Housing Counseling Agencies or other such agencies as designated by the division of Housing and Community Renewal (DHCR).  The list is provided to lenders by the NYS Banking Department and DHCR, available at <http://www.dhcr.state.ny.us/Programs/ForeclosurePrevention/CounselListing.htm>.
9  The law specifically states this section applies to a “secured party of a residential cooperative interest used by the debtor and whose security interest in such collateral secures an obligation incurred in connection with financing or refinancing of the acquisition of such cooperative interest and who proposes to dispose of such collateral after a default with respect to such obligation...”  UCC § 9-611(f).
10  The notice is available on Empire Justice Center’s website at <www.empirejustice.org>.
11  This provision applies to secured parties “whose collateral consists of a residential cooperative interest used by the debtor and whose security interest in such collateral secures an obligation incurred in connection with financing or refinancing of the acquisition of such cooperative interest…” UCC  § 9-620(h).
12  RPAPL § 1306(4).
13  The mandatory settlement conference provision sunsets five years from the effective date.
14  See footnote 5 for definition of “home loan” (RPAPL § 1304).
15  Settlement conference shall be held “for the purpose of holding settlement discussions pertaining to the relative rights and obligations of the parties under the mortgage loan documents, including, but not limited to determining whether the parties can reach a mutually agreeable resolution to help the defendant avoid losing his or her home, and evaluating the potential for a resolution in which payment schedules or amounts may be modified or other workout options may be agree to, and for whatever other purposes the court deems appropriate.” CPLR 3408(a).
16  CPLR 3408(f).
17  CPLR 3408(h).
18  CPLR 3408(g).
19  For plaintiff, such documents should include at least the payment history, an itemization of the cure and payoff amounts, the mortgage and the note; the defendant should be instructed to bring at least proof of income including most recent pay stubs, tax return, and property tax statements.  The law also states that “If the plaintiff is not the owner of the mortgage and note, the plaintiff shall provide the name, address and telephone number of the legal owner of the mortgage and note.” CPLR 3408(e).  This does not change any requirement already provided under law that the plaintiff be the legal owner and holder of the mortgage and note. 
20  CPLR 3408(d).
21  Chapter 507 of the Laws of New York, 2009, sec.10-a(1). 
22  Information to be collected by OCA and reported on includes “the number of adjournments, defaults, discontinuances, dismissals, conferences held, and defendants appearing with and without counsel.”  Id. at sec.10-a(2).
23  See CPLR 3408
24  The notice is available on Empire Justice Center’s website at <www.empirejustice.org>.
25  “Tenant” is defined as any person who at the time the notice required by RPAPL § 1303(4) appears as a lessee on a lease of one or more dwelling units of a residential real property that is subordinate to the mortgage on such residential real property; or who at such time is a party to an oral or implied rental agreement with the mortgagor and obligated to pay rent to the mortgagor or such mortgagor’s representative, for the use or occupancy of one or more dwelling units of a residential real property.  RPAPL § 1305(1)(c).  The lease must also require payment of rent that is not substantially less than the fair market rent for the unit, unless the unit is subject to federal or state statutory system of subsidy or other federal or state statutory scheme.  A tenant may not be the owner of the residential real property.  RPAPL § 1305(2). 
26  RPAPL § 1305(2).
27  See footnote 25 for definition of “tenant.”  RPAPL § 1305.
28  Specifically, the law requires the property be maintained pursuant to NY property maintenance Code Chapter 3, sections 301, 302 (excluding 302.2, 302.6 and 302.8), 304.1, 304.3, 304.7, 304.10, 304.12, 304.13, 304.15, 304.16, 307.1, and 308.1.  RPAPL § 1307(5).
29  Id. at § 1307(3).
30  “Recovery of such reduction in the principal amount shall not be deemed to be interest for any purpose of the laws of this state.” Banking Law § 6-f(1).
31  The legend must be in at least 14-point type and state: “In this agreement, you are giving away some of any future increase in value of your home.  Please read carefully.”  Banking Law § 6-f(1).
32  The heading of the notice must be in bold, 14-point type and state: “Important disclosures about the contract in which you agree to give away a part of any future increase in value of your home.  Please read carefully.” Id.
33  If there are not five agencies located in the county of the mortgagor, the list shall include agencies in neighboring counties.  A list of HUD-certified mortgage counseling agencies in New York can be found at <http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?&webListAction=search&searchstate=NY>.
34  As to cooperative interests, the law states: “by any certificate of stock or other evidence of ownership in, and a proprietary lease from, a corporation, partnership or other entity formed for the purpose of cooperative ownership of real estate…” Banking Law § 6-l(1)(e).
35  Real Property Law § 265-b(2)(b)(1)(e)(i).
36  Real Property Law § 265-b(2)(b)(1)(e)(vii).
37  Chapter 507, sec. 23.
38  Id. at sec. 24.