§ 280-b. Federal home equity conversion mortgage regulation. 1. For\nthe purposes of this section, the following terms shall have the\nfollowing meanings:\n (a) Reverse mortgage loan. A reverse mortgage loan as defined in\nsection two hundred eighty of this article, which is issued in this\nstate pursuant to the home equity conversion mortgage for seniors\nprogram operated by the federal Department of Housing and Urban\nDevelopment.\n (b) Authorized lender. An authorized lender as defined in section two\nhundred eighty of this article authorized to make reverse mortgage\nloans, as defined in this section.\n (c) Superintendent. The superintendent of financial services\nestablished pursuant to section two hundred two of the financial\nservices law.\n 2. No authorized lender or any other party or entity shall in any\nmanner, in the marketing or offering of reverse mortgage loans, engage\nin any unfair or deceptive practices in connection with the marketing or\noffering of reverse mortgage loans, and, additionally, shall not:\n (a) use the words "public service announcement" in any commercial,\nmailing, advertisement or writing relating thereto; or\n (b) use the words "government insured" or other similar language in a\nmanner that falsely represents that reverse mortgage loans are insured,\nsupported and sponsored by any governmental entity in any commercial,\nmailing, advertisement or writing relating thereto; or\n (c) represent that any such loan is other than a commercial product.\n 3. (a) Every authorized lender or its agent shall provide, with any\nsolicitation for reverse mortgage products mailed to a physical address\nwithin the state, supplemental consumer protection materials the content\nand form of which shall be specified by the superintendent or his or her\ndesignee.\n (b) Every authorized lender shall provide each applicant or potential\napplicant for a reverse mortgage loan with the telephone number and\ninternet website address provided by the federal Department of Housing\nand Urban Development for the purposes of acquiring home equity\nconversion mortgage counseling.\n (c) The superintendent is authorized to promulgate such rules and\nregulations as he or she shall deem necessary to implement the\nprovisions of this subdivision.\n 4. (a) Reverse mortgages secured by residential real property within\nthe state shall be subject to the rules and regulations of the federal\nDepartment of Housing and Urban Development relating to the home equity\nconversion mortgage program.\n (b) For all borrowers whose tax payments, mortgage insurance payments,\nhomeowners insurance payments, or payments stemming from any other\nproperty obligation or obligations are administered by the authorized\nlender, and where these payments are derived from the proceeds of the\nmortgage, the authorized lender shall provide on the borrower's periodic\naccount statement the current balance remaining in the borrower's line\nof credit or lifetime expectancy set aside, the projected annual\nproperty charges for that year, and a notice which reads in at least\ntwelve point type: "YOUR TAXES AND INSURANCE ARE CURRENTLY BEING PAID BY\nTHE PROCEEDS OF THIS MORTGAGE. THE FUNDS THAT HAVE BEEN SET ASIDE ARE\nEXPECTED TO BE EXHAUSTED AFTER THE TAX AND INSURANCE PAYMENTS OF\n(SPECIFY EXPECTED MONTH AND YEAR). IF THE PROCEEDS OF THIS MORTGAGE\nCANNOT PAY THE TAXES AND INSURANCE, YOU MUST PAY THESE OBLIGATIONS OR\nYOUR HOME MAY BE LOST TO FORECLOSURE. PLEASE NOTE THAT AS TAX AND\nINSURANCE AMOUNTS CAN VARY YOU SHOULD CONTINUE TO REVIEW THIS NOTICE FOR\nCHANGES."\n (c) An authorized lender shall, by telephone and first class mail,\ninform and provide notice to a mortgagor when his or her home equity\nline of credit or life expectancy set aside is depleted to ten percent\nor less of its value. Such notice shall inform the mortgagor of his or\nher obligations relating to such real property including, but not\nlimited to, mortgage insurance, homeow
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