Relates to penalties for violations of article fifteen of the executive law committed by mortgage bankers and mortgage brokers; includes such violations as grounds for suspension or revocation of license or registration.
STATE OF NEW YORK
________________________________________________________________________
4829
2025-2026 Regular Sessions
IN ASSEMBLY
February 6, 2025
___________
Introduced by M. of A. O'PHARROW -- read once and referred to the
Committee on Banks
AN ACT to amend the banking law, in relation to penalties for certain
violations committed by mortgage bankers and mortgage brokers
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph (a) of subdivision 1 of section 595 of the bank-
2 ing law, as amended by chapter 291 of the laws of 2014, is amended to
3 read as follows:
4 (a) Through a course of conduct, the licensee or registrant has
5 violated any provisions of this article, or article fifteen of the exec-
6 utive law committed in their capacity as a mortgage banker or mortgage
7 broker, or any rule or regulation promulgated by the superintendent of
8 financial services under and within the authority of this article or of
9 any other law, rule or regulation of this state or the federal govern-
10 ment;
11 § 2. Paragraphs (g) and (h) of subdivision 1 of section 595-a of the
12 banking law, paragraph (g) as amended and paragraph (h) as added by
13 chapter 308 of the laws of 2006, are amended and a new paragraph (i) is
14 added to read as follows:
15 (g) Violation of section six-j of this chapter; [and]
16 (h) Making a mortgage loan, or indirectly or directly providing for
17 the making of a mortgage loan, to an equity purchaser, as defined in
18 section two hundred sixty-five-a of the real property law, if the mort-
19 gage banker, mortgage broker or exempt organization had knowledge that
20 the equity purchaser was not complying with the provisions of section
21 two hundred sixty-five-a of the real property law with respect to such
22 transaction[.]; and
23 (i) Violation of article fifteen of the executive law committed in
24 their capacity as a mortgage banker or mortgage broker.
25 § 3. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08808-01-5
