Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|
---|---|
Jan 06, 2010 |
referred to banks |
Apr 27, 2009 |
referred to banks |
Senate Bill S5102
2009-2010 Legislative Session
Sponsored By
(D, IP) Senate District
Archive: Last Bill Status - In Senate Committee Banks 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
Actions
2009-S5102 (ACTIVE) - Details
- See Assembly Version of this Bill:
- A170
- Current Committee:
- Senate Banks
- Law Section:
- Banking Law
- Laws Affected:
- Add §595-c, Bank L
- Versions Introduced in 2011-2012 Legislative Session:
-
S4038, A1913
2009-S5102 (ACTIVE) - Sponsor Memo
BILL NUMBER: S5102 TITLE OF BILL : An act to amend the banking law, in relation to the dealings of mortgage brokers and home improvement contractors PURPOSE OR GENERAL IDEA OF BILL : This legislation prohibits home improvement contractors from acting on behalf of mortgage brokers. JUSTIFICATION : A conflict exists when home improvement contractors act on behalf of mortgage brokers, unscrupulously using high-pressure sales so that people will obtain loans for what are often unnecessary repairs. Frequently, these contractors target low-income neighborhoods to solicit high interest second mortgages in order to finance construction work that is usually careless or unfinished. The result is thousands of African-American, Puerto Rican/Latino and elderly homeowners facing eviction. High-pressure sales, the lack of accessible credit and banking services has made these groups especially susceptible to these deceptions. At 20% interest, some monthly payments have reached as high as $1600, excessive for homeowners risking foreclosure. The purpose of this legislation is to stop these unjust selling practices,
2009-S5102 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 5102 2009-2010 Regular Sessions I N S E N A T E April 27, 2009 ___________ Introduced by Sen. SAVINO -- read twice and ordered printed, and when printed to be committed 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: Section 1. The banking law is amended by adding a new section 595-c to read as follows: S 595-C. REGULATION OF DEALINGS OF MORTGAGE BROKERS AND HOME IMPROVE- MENT CONTRACTORS. 1. A HOME IMPROVEMENT CONTRACTOR SHALL NOT REPRESENT A MORTGAGE BROKER WHILE SOLICITING HOME IMPROVEMENT CONTRACTS. THE STAFF OF A HOME IMPROVEMENT CONTRACTOR SHALL NOT ACT ON BEHALF OF A MORTGAGE BROKER IN ANY TRANSACTION. 2. A MORTGAGE BROKER SHALL NOT PAY A HOME IMPROVEMENT CONTRACTOR DIRECTLY UNLESS THEY PERFORM THEIR OWN INSPECTION OF THE COMPLETED WORK. 3. FOR THE PURPOSE OF THIS SECTION, "HOME IMPROVEMENT CONTRACTOR" MEANS A PERSON, FIRM OR CORPORATION WHICH OWNS OR OPERATES A HOME IMPROVEMENT BUSINESS OR WHO UNDERTAKES, OFFERS TO UNDERTAKE OR AGREES TO PERFORM ANY HOME IMPROVEMENT FOR A FEE AND FOR WHOM THE TOTAL CASH PRICE OF ALL OF HIS HOME IMPROVEMENT CONTRACTS WITH ALL HIS CUSTOMERS EXCEEDS ONE THOUSAND FIVE HUNDRED DOLLARS DURING ANY PERIOD OF TWELVE CONSEC- UTIVE MONTHS. HOME IMPROVEMENT CONTRACTOR DOES NOT INCLUDE A PERSON, FIRM, CORPORATION, LANDLORD, COOPERATIVE CORPORATION, CONDOMINIUM BOARD OF MANAGERS, JOINT TENANT OR CO-TENANT THAT OWNS, IN WHOLE OR IN PART, THE PROPERTY TO BE IMPROVED. S 2. This act shall take effect on the ninetieth day after it shall have become a law. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD00322-01-9
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