Assembly Bill A3386

2009-2010 Legislative Session

Enacts the Home Equity Fraud Act to control improper activities by home improvement contractors and finance companies

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Assembly 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

Do you support this bill?

Please enter your contact information

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.
Actions

2009-A3386 (ACTIVE) - Details

Current Committee:
Assembly Banks
Law Section:
Banking Law
Laws Affected:
Amd §§595-a, 347 & 592-a, Bank L; add §254-e, RP L; add §§1304 & 1305, RPAP L; amd §771, add §771-b, Gen Bus L; add §5-335, Gen Ob L
Versions Introduced in Other Legislative Sessions:
2011-2012: A2378
2013-2014: A2852
2015-2016: A4491

2009-A3386 (ACTIVE) - Summary

Enacts the "Home Equity Fraud Act" to control improper activities by home improvement contractors and finance companies; prohibits mortgage brokers or agents from acting as home improvement contractors; provides additional protections for mortgagors and home owners.

2009-A3386 (ACTIVE) - Bill Text download pdf

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

                                  3386

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 27, 2009
                               ___________

Introduced  by M. of A. CLARK, ESPAILLAT, HOOPER, ORTIZ, ALFANO, GABRYS-
  ZAK -- Multi-Sponsored by -- M. of  A.  BARRA,  BRENNAN,  CHRISTENSEN,
  COLTON,  COOK, DIAZ, GANTT, GIANARIS, JACOBS, MAGEE, MAYERSOHN, McENE-
  NY, MILLMAN, PERRY,  SCARBOROUGH,  TOWNS,  WRIGHT  --  read  once  and
  referred to the Committee on Banks

AN ACT to amend the banking law, the real property law, the real proper-
  ty  actions  and  proceedings  law,  the  general business law and the
  general obligations law, in relation  to  enacting  the  "Home  Equity
  Fraud Act"

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

  Section 1. Short title. This act shall be known and may  be  cited  as
the "Home Equity Fraud Act".
  S  2.  Legislative  findings.  The  legislature hereby finds that many
senior citizens and minority homeowners in New York have  been  targeted
by  unethical home improvement contractors, mortgage companies, mortgage
brokers and finance companies who induce these homeowners into  entering
into high cost high interest rate mortgage agreements which the homeown-
er  is often unable to afford with the intent of foreclosing on the home
and stripping the equity.
  The legislature further finds that in  order  to  entice  people  into
entering  into these agreements they are promised refinancing of primary
mortgages, consolidation of loans and outstanding bills  and  are  given
cash  but often are not told or do not understand that they are securing
the loan with a mortgage lien on their home which will lead to  foreclo-
sure  in  the  event  of  default. Often these loans are documented with
false and misleading documentation provided by brokers which could easi-
ly be determined to be false if checked by the lender. Despite  prohibi-
tions  contained  in federal law many of these loans are based on equity
in the home and not on the borrower's ability  to  pay.  Since  many  of
these  homeowners  live  on  a fixed income, they are unable to make the

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04979-01-9
              

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.