In order to reduce home equity fraud, the Home Equity Theft Prevention Act (HETPA, NY RPL §265-a) was passed on July 26, 2006 and it provides homeowners of residential property with information and disclosures in order to make informed decisions when approached by persons seeking a sale or transfer of the homeowner's property, particularly when homeowners are in default on their mortgage payments or the property is in foreclosure.
HETPA also affects the Banking Law (prohibiting banks from participating in home equity theft) and the Real Property Actions and Proceedings Law (requiring notice and information on foreclosure actions).
See DFS Industry Letter Home Equity Theft Prevention Act