Assembly Bill A3192

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  3192

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 23, 2009
                               ___________

Introduced  by M. of A. TOWNS -- read once and referred to the Committee
  on Judiciary

AN ACT to amend the real property law, in relation to requiring  a  loan
  counseling  disclosure as part of contract of sale for the transfer of
  property

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The  real property law is amended by adding a new section
242-a to read as follows:
  S 242-A. LOAN COUNSELING DISCLOSURE AS PART OF CONTRACT OF SALE.  1. A
LOAN COUNSELING DISCLOSURE NOTICE SHALL BE ATTACHED TO ALL CONTRACTS  OF
COMMERCIAL  OR  RESIDENTIAL  SALE  OF  REAL  PROPERTY  IDENTIFYING BASIC
HOMEOWNERSHIP INFORMATION, INCLUDING, BUT NOT LIMITED TO, THE  TYPES  OF
MORTGAGES,  DANGERS OF RATES, REFINANCING, HOME EQUITY LOANS AND ASSUMP-
TION  OF  MORTGAGES.  MODIFICATIONS  AND  EXTENSIONS  OF  MORTGAGES  ARE
EXCLUDED FROM SUCH REQUIREMENT.
  2.  (A) SUCH FORM SHALL BE SIGNED AT THE TIME OF CONTRACT AND ATTACHED
TO THE CONTRACT OF SALE. ATTORNEYS SHALL UPDATE THEIR LIST  OF  APPROVED
COUNSELORS  VIA HUD OR THE DEPARTMENT OF HOUSING PRESERVATION & DEVELOP-
MENT EVERY ONE HUNDRED EIGHTY DAYS. THEY MAY DO SO  BY  DOWNLOADING  THE
LATEST  LIST  OF  APPROVED  COUNSELORS  FROM  THE  HUD  OR HPD WEBSITES.
BORROWERS CAN RECEIVE COUNSELING IN PERSON OR IN WHOLE  OR  IN  PART  BY
TELEPHONIC  MEANS. THE COUNSELOR MAY ALSO REFER A BORROWER TO THE INTER-
NET FOR FURTHER INFORMATION.
  (B) THE FOLLOWING FORM SHALL BE PROVIDED TO  EVERY  BORROWER  ENTERING
INTO  A  CONTRACT  OF  SALE FOR COMMERCIAL OR RESIDENTIAL REAL PROPERTY.
SUCH FORM SHALL BE IN AT LEAST 12-POINT TYPE.
                       LOAN COUNSELING DISCLOSURE
1. I HEREBY CERTIFY THAT ON __________ (DATE) I HAVE RECEIVED  THE  LIST
OF APPROVED HOME LOAN COUNSELORS DOING BUSINESS WITHIN ONE HUNDRED (100)

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02017-01-9

              

A. 3192                             2

MILES  OF  THE  CITY, TOWN, VILLAGE OF ________________ IN THE COUNTY OF
____________
2.  I UNDERSTAND THAT I HAVE THE RIGHT TO CONSULT WITH A HOME LOAN COUN-
SELOR AT ANY TIME BEFORE OR AFTER  EXECUTION  OF  LOAN  DOCUMENTS.  SUCH
COUNSELOR  MAY  ADVISE  ME  REGARDING  MY  RIGHTS,  RESPONSIBILITIES AND
CURRENT & FUTURE OBLIGATIONS AS A HOME BUYER.
3. I FURTHER UNDERSTAND THAT IF I  CHOOSE  TO  ENTER  INTO  ANY  OF  THE
FOLLOWING  MORTGAGE ARRANGEMENTS, I MAY BE SUBJECT TO INCREASED INTEREST
RATES AND HIGHER MONTHLY PAYMENTS AT A FUTURE TIME:
  A) OPEN ARM (ADJUSTABLE RATE MORTGAGE)
  B) INTEREST ONLY MORTGAGE
  C) NEGATIVE AMORTIZATION LOAN
  D) PIGGYBACK MORTGAGE
  E) ADJUSTABLE RATE MORTGAGE
  F) LONG-TERM (40 YEAR) FIXED RATE MORTGAGE
  SIGNED _____________
  S 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law; provided, however, that effective immediate-
ly, the addition, amendment and/or repeal  of  any  rule  or  regulation
necessary  for  the implementation of this act on its effective date are
authorized and directed to be made  and  completed  on  or  before  such
effective date.