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A08909 Summary:

BILL NOA08909
 
SAME ASSAME AS S06124
 
SPONSORJeffries (MS)
 
COSPNSRRobinson
 
MLTSPNSR
 
Amd S595-c, Bank L
 
Relates to the dealings of mortgage brokers and home improvement contractors; exempts from provisions relating to payment of mortgage proceeds to a borrower or third party, rather than directly to a home improvement contractor, those home improvement loans insured by the FHA under the National Housing Act or the Energy Policy Act of 1992.
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A08909 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          8909
 
                   IN ASSEMBLY
 
                                       (Prefiled)
 
                                     January 4, 2012
                                       ___________
 
        Introduced  by  M. of A. JEFFRIES, ROBINSON -- read once and referred to
          the Committee on Banks
 
        AN ACT to amend the banking law, in relation to the dealings of mortgage
          brokers and home improvement contractors
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 

     1    Section 1. Subdivision 2 of section 595-c of the banking law, as added
     2  by chapter 593 of the laws of 2011, is amended to read as follows:
     3    2. Where a mortgage broker has solicited, processed, placed or negoti-
     4  ated  a  mortgage  loan, a home improvement contractor shall not be paid
     5  directly but instead may receive payment from the  proceeds  of  a  home
     6  improvement  loan  payable solely to the borrower or, at the election of
     7  the borrower, through an independent third party escrow agent in accord-
     8  ance with the terms established in a written  agreement  signed  by  the
     9  borrower,  the  lender and the contractor prior to disbursement. A mort-
    10  gage broker shall not offer a homeowner different loan terms  contingent
    11  on the homeowner executing an agreement for payment through an independ-
    12  ent  third party as described in the preceding sentence. Any such agree-

    13  ment shall contain a clear  and  conspicuous  disclosure:  YOU  ARE  NOT
    14  REQUIRED  TO  EXECUTE  THIS  AGREEMENT.  YOU MAY INSTEAD RECEIVE PAYMENT
    15  DIRECTLY.  (NAME OF MORTGAGE BROKER) MAY NOT OFFER YOU  DIFFERENT  TERMS
    16  ON YOUR LOAN TO SIGN THIS AGREEMENT.  The provisions of this subdivision
    17  shall  not apply to a home improvement loan insured by the federal hous-
    18  ing administration under section 203(k) of the National Housing Act,  12
    19  U.S.C.  1709(k), or to amounts added to a federal housing administration
    20  insured mortgage under the energy efficiency mortgage program originally
    21  established under section 106 of the Energy Policy Act of 1992, as  from
    22  time to time amended.
    23    §  2.  This  act  shall  take  effect on the same date and in the same

    24  manner as section 1 of chapter 593 of the laws of 2011, takes effect.
 
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD12084-02-2
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