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A02124 Summary:

BILL NOA02124
 
SAME ASNo Same As
 
SPONSORJean-Pierre
 
COSPNSR
 
MLTSPNSR
 
Amd §§595 & 595-a, Bank L
 
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.
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A02124 Actions:

BILL NOA02124
 
01/23/2023referred to banks
01/03/2024referred to banks
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A02124 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A2124
 
SPONSOR: Jean-Pierre
  TITLE OF BILL: An act to amend the banking law, in relation to penalties for certain violations committed by mortgage bankers and mortgage brokers   PURPOSE OR GENERAL IDEA OF BILL: This bill provides the superintendent of the Department of Financial Services with greater discretion in disciplining mortgage bankers or brokers found to violate provisions of New York State Human Rights Law.   SUMMARY OF PROVISIONS: Section one amends paragraph (a) of subdivision 1 of section 595 of the banking law by including a violation of state human rights law as a reason to suspend or revoke the license of a mortgage banker or broker. Section two amends paragraphs (g) and (h) of subdivision 1 of section 595-a of the banking law and adds a new paragraph (i) to include a violation of the state human right law as a reason for imposing a fine or penalty on a mortgage banker or broker. Section three sets the effective date.   DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE): N/A.   JUSTIFICATION: Article 15 of the Executive Law, known as the New York State Human Rights Law, prohibits discrimination on the basis of a protected charac- teristic, including race, creed, national origin, sex, age, disability, marital status, military status, family status, sexual orientation or gender identity. Mortgage lenders are bound by this law, but recent data from the Home Mortgage Disclosure Act reveals that black mortgage appli- cants are denied at a rate that is 80% higher than that of white appli- cants. Black applicants are also more likely to be denied when they live in predominately black zip codes. Mortgage lenders play an extremely important role in the homeownership process, serving as the financial gateway to owning a home. An individ- ual's race, creed, national origin, sex, age, disability, marital status, military status, family status, sexual orientation or gender identity should not play a part in the mortgage lending process. The Department of Financial Services currently has the power to fine, suspend, or revoke the license of a mortgage banker or broker for a long list of offenses. However, the Department does not specifically have the ability to fine, suspend, or ,revoke the license of a mortgage banker or broker for discriminating in their official capacity. This legislation builds on recently chaptered legislation (chapter 131 of 2020) by extending additional authority to the Department to deter and help elim- inate discrimination in the homeownership process, specifically the mortgage lending process.   PRIOR LEGISLATIVE HISTORY: 2019-20: A10980 2021-22: A2131   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None.   EFFECTIVE DATE: This act shall take effect immediately.
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A02124 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          2124
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 23, 2023
                                       ___________
 
        Introduced  by  M.  of  A.  JEAN-PIERRE -- 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 his or her capacity as a mortgage banker or mort-
     7  gage broker, or any rule or regulation promulgated by the superintendent
     8  of  financial services under and within the authority of this article or
     9  of any other law, rule or  regulation  of  this  state  or  the  federal
    10  government;
    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 his
    24  or her 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.
                                                                   LBD02934-01-3
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