NY State Senate Bill 2009-S134

Senate Bill S134

2009-2010 Legislative Session

Requires a loan counseling disclosure as part of contract of sale for the transfer of property

download bill text pdf

Archive: Last Bill Status - In Senate Committee Judiciary Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to judiciary returned to senate died in assembly
May 13, 2009	referred to judiciary delivered to assembly passed senate
Mar 09, 2009	amended on third reading 134b
Feb 09, 2009	amended on third reading 134a
Feb 03, 2009	advanced to third reading
Feb 02, 2009	2nd report cal.
Jan 27, 2009	1st report cal.4
Jan 07, 2009	referred to judiciary

Votes

- May 13, 2009 - Floor Vote
  S134
  
  38
  
  Aye
  
  22
  
  Nay
  
  1
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: May 13, 2009
      
      aye (38)
      
      Adams
      
      Addabbo Jr.
      
      Aubertine
      
      Bonacic
      
      Breslin
      
      Dilan
      
      Duane
      
      Espada
      
      Farley
      
      Foley
      
      Fuschillo
      
      Hassell-Thompson
      
      Huntley
      
      Johnson
      
      Klein
      
      Krueger
      
      Kruger
      
      McDonald
      
      Monserrate
      
      Montgomery
      
      Morahan
      
      Onorato
      
      Oppenheimer
      
      Padavan
      
      Parker
      
      Perkins
      
      Sampson
      
      Savino
      
      Schneiderman
      
      Serrano
      
      Smith
      
      Squadron
      
      Stachowski
      
      Stavisky
      
      Stewart-Cousins
      
      Thompson
      
      Valesky
      
      Volker
      
      nay (22)
      
      DeFrancisco
      
      Flanagan
      
      Golden
      
      Griffo
      
      Hannon
      
      Johnson
      
      LaValle
      
      Lanza
      
      Larkin
      
      Leibell
      
      Libous
      
      Little
      
      Marcellino
      
      Maziarz
      
      Nozzolio
      
      Ranzenhofer
      
      Robach
      
      Saland
      
      Seward
      
      Skelos
      
      Winner
      
      Young
      
      absent (1)
      
      Diaz
      
      excused (1)
      
      Alesi

Bill Amendments

Original

B (Active)

2009-S134 - Details

Current Committee:: Senate Judiciary

2009-S134 - Summary

Requires a loan counseling disclosure as part of contract of sale for the transfer of property; provides that such form shall be signed at the time of contract and attached to the contract of sale.

2009-S134 - Sponsor Memo

                                 BILL NUMBER:  S134

 TITLE OF BILL :
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


 PURPOSE :
Requires a loan counseling disclosure rider to be attached and signed
at the time a real estate contract is signed.

 SUMMARY OF PROVISIONS :
The real property law is amended by adding a new section 242-a to
require a loan counseling disclosure rider for all real estate
contracts.

Section 2(a) requires attorneys to update their lists of approved
counselors every 180 days.

Section 2(b) contains the form to be used for the rider.

 JUSTIFICATION :
There is currently a mortgage crisis in the United States and the
State of New York. Rising interest rates are dramatically increasing
the amounts of required monthly mortgage payments for home owners who

financed their property by using Adjustable Rate Mortgages. In some
cases consumers are required to pay double what their former payments
were under their old rates.  In addition, "Interest Only" payment
plans,"No Money Down" and 40-year mortgage loans are also leading
consumers to greater hardship and financial difficulty. Inability to
pay mortgages leads more consumers to bankruptcy or foreclosure.
Buyers should know that there are financial professionals available
that will advise them on the perils and pitfalls of the various
mortgages available in the market.  Consulting with a home loan
counselor early in the buying process can save New York consumers
timer money, frustration and legal peril.

 EXISTING LAW :
There is currently no requirement for a loan counseling disclosure
form to be attached to contracts of sale of property.

 LEGISLATIVE HISTORY :
S.5135 of 2007

 FISCAL IMPLICATIONS :
None.

 LOCAL FISCAL IMPLICATIONS :
None.

 EFFECTIVE DATE :
This act shall take effect on the 180th day after it shall have become
law; provided, however, that effective immediately, 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.

2009-S134 - Bill Text download pdf

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

                                   134

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 7, 2009
                               ___________

Introduced  by  Sen. SAMPSON -- read twice and ordered printed, and when
  printed to be committed 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

S. 134                              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.

2009-S134A - Details

Current Committee:: Senate Judiciary

2009-S134A - Summary

Requires a loan counseling disclosure as part of contract of sale for the transfer of property; provides that such form shall be signed at the time of contract and attached to the contract of sale.

2009-S134A - Sponsor Memo

                                 BILL NUMBER:  S134A

 TITLE OF BILL :
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


 PURPOSE :
Requires a loan counseling disclosure rider to be attached and signed
at the time a real estate contract is signed.

 SUMMARY OF PROVISIONS :
The real property law is amended by adding a new section 242-a to
require a loan counseling disclosure rider for all real estate
contracts.

Section 2(a) requires attorneys to update their lists of approved
counselors every 180 days.

Section 2(b) contains the form to be used for the rider.

 JUSTIFICATION :
There is currently a mortgage crisis in the United States and the
State of New York. Rising interest rates are dramatically increasing
the amounts of required monthly mortgage payments for home owners who

financed their property by using Adjustable Rate Mortgages. In some
cases consumers are required to pay double what their former payments
were under their old rates. In addition, "Interest Only" payment
plans,"No Money Down" and 40-year mortgage loans are also leading
consumers to greater hardship and financial difficulty.  Inability to
pay mortgages leads more consumers to bankruptcy or foreclosure.
Buyers should know that there are financial professionals available
that will advise them on the perils and pitfalls of the various
mortgages available in the market. Consulting with a home loan
counselor early in the buying process can save New York consumers
time, money, frustration and legal peril.

 EXISTING LAW :
There is currently no requirement for a loan counseling disclosure
form to be attached to contracts of sale of property.

 LEGISLATIVE HISTORY :
S.5135 of 2007

 FISCAL IMPLICATIONS :
None.

 LOCAL FISCAL IMPLICATIONS :
None.

 EFFECTIVE DATE :
This act shall take effect on the 180th day after it shall have become
law; provided, however, that effective immediately, 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.

2009-S134A - Bill Text download pdf

2009-S134B (ACTIVE) - Details

Current Committee:: Senate Judiciary

2009-S134B (ACTIVE) - Summary

Requires a loan counseling disclosure as part of contract of sale for the transfer of property; provides that such form shall be signed at the time of contract and attached to the contract of sale.

2009-S134B (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S134B

 TITLE OF BILL :
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


 PURPOSE :
Requires a loan counseling disclosure rider to be attached and signed
at the time a real estate contract is generated.

 SUMMARY OF PROVISIONS :
The real property law is amended by adding a new section 242-a to
require a loan counseling disclosure rider for all residential real
property contracts of sale.

Section 242(a) subsections a-f define the terms "list", "residence",
"mortgagor", "division", "loan counselor" and "residential real
property".  Section 242(2) requires a loan counseling disclosure rider
for all residential real property contracts of sale.  Section 242
(3)indicates that the form shall be provided by the attorney and/or
broker responsible for generating the contract of sale.  Section 242
(4) indicates the required language of the form.  Section 242 (5)
provides that failure to comply with the provisions of this measure
shall not create a cause of action nor invalidate a contract of sale.

However, the Banking Department or Attorney General may investigate
the repeated failure of an attorney or broker to comply with this
legislation and may publicly disclose same.

 JUSTIFICATION :
There is currently a mortgage crisis in the United States and the
State of New York. Rising interest rates are dramatically increasing
the amounts of required monthly mortgage payments for home owners who
financed their property by using Adjustable Rate Mortgages. In some
cases consumers are required to pay double what their former payments
were under their old rates.  In addition, "Interest Only" payment
plans, "No Money Down" and 40-year mortgage loans are also leading
consumers to greater hardship and financial difficulty. Inability to
pay mortgages leads more consumers to bankruptcy or foreclosure.
Buyers should know that there are financial professionals available
that will advise them on the perils and pitfalls of the various
mortgages available in the market.  Consulting with a home loan
counselor early in the buying process can save New York consumers
time, money, frustration and legal peril.

 EXISTING LAW :
There is currently no requirement for a loan counseling disclosure
form to be attached to contracts of sale of property.

 LEGISLATIVE HISTORY :
S.5135 of 2007

 FISCAL IMPLICATIONS :
None.

 LOCAL FISCAL IMPLICATIONS :
None.

 EFFECTIVE DATE :
This act shall take effect immediately.

2009-S134B (ACTIVE) - Bill Text download pdf

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

                                 134--B
    Cal. No. 4

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 7, 2009
                               ___________

Introduced  by  Sen. SAMPSON -- read twice and ordered printed, and when
  printed to be committed to the  Committee  on  Judiciary  --  reported
  favorably  from  said  committee,  ordered to first and second report,
  ordered to a third reading, amended and ordered  reprinted,  retaining
  its  place  in the order of third reading -- again amended and ordered
  reprinted, retaining its place in the order of third reading

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.
FOR  THE  PURPOSES  OF  THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE
FOLLOWING MEANINGS:
  (A) "RESIDENCE" SHALL MEAN THE HOUSING THAT A PERSON, WHENEVER ABSENT,
INTENDS TO RETURN TO.
  (B) "MORTGAGOR" SHALL MEAN THE PERSON WHO IS RESPONSIBLE FOR REPAYMENT
OF A LOAN WHICH IS SECURED BY RESIDENTIAL  REAL  PROPERTY  THEY  OWN  OR
OCCUPY.
  (C)  "DIVISION"  SHALL  MEAN  THE  DIVISION  OF  HOUSING AND COMMUNITY
RENEWAL.
  (D) "LOAN COUNSELOR" SHALL MEAN A PERSON OR PERSONS OR AN ENTITY WHICH
EMPLOYS OR SUPERVISES SUCH PERSON OR PERSONS WHO ARE TRAINED IN OR  HAVE
SPECIALIZED  KNOWLEDGE  OF  THE  TYPES  OF MORTGAGES AVAILABLE, TYPES OF
INTEREST RATES, REFINANCING PROCESS AND COSTS,  HOME  EQUITY  LOANS  AND
ASSUMPTION OF MORTGAGES AND WHO PROVIDE SERVICES IN THIS STATE.
  (E) "LIST" SHALL MEAN A LIST TO BE DEVELOPED BY THE DIVISION AND WHICH
SHALL  BE  UPDATED ANNUALLY NOT LATER THAN NOVEMBER FIFTEENTH. THE LIST,
ONCE UPDATED, SHALL BE POSTED ON THE INTERNET WEBSITE  OF  THE  DIVISION
NOT  LATER  THAN  DECEMBER  FIRST  OF  EACH  YEAR AND SHALL APPLY TO THE

FOLLOWING CALENDAR YEAR. IT SHALL CONTAIN THE NAMES OF EVERY LOAN  COUN-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02017-04-9

S. 134--B                           2

SELOR  APPROVED  BY THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL BY
COUNTY AND THEREAFTER EACH COUNTY SHALL BE ASSIGNED TO A REGION AND  THE
DIVISION  WEBSITE  SHALL  INCLUDE  A LIST OF APPROVED LOAN COUNSELORS BY
REGION  THROUGHOUT THE STATE. SUCH COMMISSIONER SHALL NOT BE REQUIRED TO
UNDERTAKE A PARTICULAR APPROVAL PROCESS TO DETERMINE IF  SOMEONE  OR  AN
ENTITY  IS  AN APPROVED LOAN COUNSELOR AND MAY UTILIZE ANY OTHER LIST OF
LOAN COUNSELORS PROVIDED BY ANOTHER AGENCY SUCH COMMISSIONER APPROVES OF
BUT SHALL, IN ANY EVENT, BE RESPONSIBLE FOR LISTING LOAN  COUNSELORS  BY
REGION ON THE DIVISION'S WEBSITE.
  (F) "RESIDENTIAL REAL PROPERTY" SHALL INCLUDE RESIDENTIAL PROPERTY AND
ANY  PROPERTY  OR  BUILDING  CONTAINING  BOTH RESIDENTIAL AND COMMERCIAL
SPACE.
  2. LOAN COUNSELING DISCLOSURE AS PART OF A CONTRACT OF  SALE.  A  LOAN
COUNSELING  DISCLOSURE  NOTICE  AS DESCRIBED IN SUBDIVISION FOUR OF THIS
SECTION SHALL BE ATTACHED TO ALL CONTRACTS OF SALE OF  RESIDENTIAL  REAL
PROPERTY.
  3.  THE  FORM  SHALL BE PROVIDED BY THE ATTORNEY AND/OR BROKER THAT IS
RESPONSIBLE FOR GENERATING THE CONTRACT OF SALE AT THE TIME THE CONTRACT
OF SALE IS GENERATED. MODIFICATIONS  AND  EXTENSIONS  OF  MORTGAGES  ARE
EXCLUDED  FROM  SUCH REQUIREMENT. THE FORM AND LIST PROVIDED PURSUANT TO
THIS SECTION SHALL BE IN AT LEAST TWELVE-POINT TYPE.
  4. THE FOLLOWING FORM SHALL BE SIGNED AT THE TIME OF EXECUTION OF  THE
CONTRACT OF SALE AND ATTACHED THERETO.

                       "LOAN COUNSELING DISCLOSURE

  I  HEREBY  CERTIFY  THAT ON ____________________________ (DATE) I HAVE
RECEIVED A LIST OF APPROVED HOME LOAN COUNSELORS. I  UNDERSTAND  THAT  I
HAVE  THE  RIGHT TO CONSULT WITH A HOME LOAN COUNSELOR PRIOR TO THE TIME
OF EXECUTING A MORTGAGE. SUCH COUNSELOR MAY  ADVISE  ME  OF  MY  RIGHTS,
RESPONSIBILITIES  AND  CURRENT AND FUTURE OBLIGATIONS AS A HOME BUYER. 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_________________________"

  5. THE FAILURE TO COMPLY WITH THE PROVISIONS OF THIS SECTION SHALL NOT
CREATE A CAUSE OF ACTION OR INVALIDATE A CONTRACT OF SALE.  THE  BANKING
DEPARTMENT  OR ATTORNEY GENERAL MAY, HOWEVER, IN ITS DISCRETION INVESTI-
GATE THE REPEATED FAILURE OR  ALLEGED  FAILURE  OF  AN  ATTORNEY  AND/OR
BROKER  TO  PROVIDE  THE  REQUIRED INFORMATION AND DISCLOSE PUBLICLY THE
FAILURE OF THAT ATTORNEY AND/OR BROKER TO PROVIDE THE REQUIRED  INFORMA-
TION.    COUNSELING WHICH TAKES PLACE AFTER THE MORTGAGOR SIGNS THE FORM
PROVIDED FOR IN SUBDIVISION FOUR OF THIS SECTION SHALL  NOT  CREATE  THE
RIGHT  OF  A  MORTGAGOR WHO CHOOSES TO WITHDRAW FROM A MORTGAGE PRIOR TO
THE EXECUTION OF LOAN DOCUMENTS TO REFUSE PAYMENT OF ANY REASONABLE LOAN
REVIEW AND PROCESSING FEES HE OR SHE HAS AGREED TO PAY WHEN  HE  OR  SHE
APPLIES FOR THE MORTGAGE.
  S 2. This act shall take effect immediately.

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Senate Bill S134

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Sponsored By

John L. Sampson

Archive: Last Bill Status - In Senate Committee Judiciary Committee

Bill Amendments

2009-S134 - Details

2009-S134 - Summary

2009-S134 - Sponsor Memo

2009-S134 - Bill Text download pdf

2009-S134A - Details

2009-S134A - Summary

2009-S134A - Sponsor Memo

2009-S134A - Bill Text download pdf

2009-S134B (ACTIVE) - Details

2009-S134B (ACTIVE) - Summary

2009-S134B (ACTIVE) - Sponsor Memo

2009-S134B (ACTIVE) - Bill Text download pdf

Comments