Relates to refinancing of an existing mortgage loan; provides for a separate disclosure which compares monthly payments under the previous mortgage with the combined monthly payments for the new mortgage loan, property tax and insurance.
STATE OF NEW YORK
________________________________________________________________________
5290
2019-2020 Regular Sessions
IN SENATE
April 23, 2019
___________
Introduced by Sen. THOMAS -- read twice and ordered printed, and when
printed to be committed to the Committee on Banks
AN ACT to amend the banking law, in relation to refinancing of an exist-
ing mortgage loan
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 3 of section 595-a of the banking law is
2 amended by adding a new paragraph (e) to read as follows:
3 (e) For any refinancing of an existing mortgage loan, where the mort-
4 gagor will no longer be paying property tax or insurance payments into
5 an escrow account, each mortgage broker, mortgage banker and exempt
6 organization shall, prior to closing, provide a separate disclosure
7 which compares the total monthly payments under the previous mortgage
8 with the combined monthly payments for the new mortgage loan, real prop-
9 erty taxes and insurance. The banking board may specify the form,
10 content and timing of such disclosure.
11 § 2. This act shall take effect on the one hundred eightieth day after
12 it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00595-01-9
