Provides that a mortgage investing institution that maintains a mortgage on any real property in the state of New York shall give ten days written notice prior to requiring payment of an increase in the amount of escrow if the dollar amount of such increase is more than five percent of the total monthly payment; provides that no service charge shall be imposed for the giving of such notice; defines that term "mortgage investing institutions" as any banking organization or other entity engaged in the business of offering mortgage financing to the public or investing in mortgages.
STATE OF NEW YORK
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4684
2023-2024 Regular Sessions
IN SENATE
February 13, 2023
___________
Introduced by Sen. PARKER -- read twice and ordered printed, and when
printed to be committed to the Committee on Judiciary
AN ACT to amend the general obligations law, in relation to increases in
mortgage escrow account requirements
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The general obligations law is amended by adding a new
2 section 5-603 to read as follows:
3 § 5-603. Increases in deposits in escrow with mortgage investing
4 institutions. Any mortgage investing institution that maintains an
5 escrow account pursuant to any agreement executed in connection with a
6 mortgage on any real property located in this state shall give at least
7 ten days written notice prior to requiring payment of any increase in
8 the amount of escrow if the dollar amount of such increase is more than
9 five percent of the dollar amount of the total monthly payment (which
10 includes principal, interest, and all escrow amounts) for the month
11 prior to the month for which the increase is effective. No service
12 charge shall be imposed for the giving of such notice. For the purposes
13 of this section, "mortgage investing institution" shall mean any banking
14 organization, as defined in section two of the banking law, or any other
15 entity engaged in the business of offering mortgage financing to the
16 public or investing in mortgages.
17 § 2. This act shall take effect on the ninetieth day after it shall
18 have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06018-01-3
