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S07224 Summary:

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S07224 Floor Votes:

S07224 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          7224
 
                    IN SENATE
 
                                       May 6, 2014
                                       ___________
 
        Introduced  by  Sens.  FARLEY, GRIFFO -- 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 subprime home loans
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1. Paragraph (c) of subdivision 1 of section 6-m of the bank-

     2  ing law is amended by  adding  a  new  subparagraph  (iii)  to  read  as
     3  follows:
     4    (iii) Notwithstanding the thresholds set forth in this paragraph, if a
     5  home loan is insured by the federal housing administration, and if annu-
     6  al  mortgage  insurance  premiums  are  collected by the federal housing
     7  administration for the maximum duration permitted under federal statute,
     8  and if such loan is not a Title 1 home improvement loan nor a home equi-
     9  ty conversion mortgage, then the term "subprime home loan" means a  home
    10  loan  in  which  the  initial  interest  rate or the fully-indexed rate,
    11  whichever is higher, exceeds by more than  two  and  a  half  percentage
    12  points for a first-lien loan, or by more than four and a half percentage

    13  points  for  a  subordinate-lien  loan,  the average commitment rate for
    14  loans in the northeast region with a comparable duration to the duration
    15  of such home loan, as published by the Federal Home Loan Mortgage Corpo-
    16  ration (herein "Freddie Mac") in  its  weekly  Primary  Mortgage  Market
    17  Survey  (PMMS)  posted in the week prior to the week in which the lender
    18  provides the "good faith estimate" required under 12 USC §2601 et seq.
    19    § 2. This act shall take effect immediately.
 
 
 
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14882-01-4