Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|
---|---|
Apr 15, 2010 |
referred to local government |
Senate Bill S7489
2009-2010 Legislative Session
Sponsored By
(R) Senate District
Archive: Last Bill Status - In Senate Committee Local Government 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-S7489 (ACTIVE) - Details
- Current Committee:
- Senate Local Government
- Law Section:
- Real Property Tax Law
- Laws Affected:
- Amd §953, RPT L; amd §6-k, Bank L
- Versions Introduced in 2011-2012 Legislative Session:
-
S144
2009-S7489 (ACTIVE) - Sponsor Memo
BILL NUMBER: S7489 TITLE OF BILL : An act to amend the real property tax law and the banking law, in relation to the amounts held in mortgage escrow accounts PURPOSE OR GENERAL IDEA OF BILL : Currently, mortgage servicers are allowed to collect a two month reserve from a mortgagor, over and above the annual tax and insurance amounts. This bill would change the law to allow mortgage servicers to collect a one-month reserve. SUMMARY OF SPECIFIC PROVISIONS : Section one would amend subdivision 1 section 953 of the real property tax law to allow that the amount held in escrow be no more than one-twelfth the amount of the estimated taxes. Section two would amend paragraph (a) of subdivision 2 of section 6-k of the banking law to allow that the amount held in escrow be no more than one twelfth the amount of the estimated taxes. JUSTIFICATION : An escrow reserve is intended to allow a mortgagor to meet increased taxes or insurance costs without having to advance its own funds to cover a shortfall. Although servicers are required to pay interest on
2009-S7489 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 7489 I N S E N A T E April 15, 2010 ___________ Introduced by Sen. MAZIARZ -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government AN ACT to amend the real property tax law and the banking law, in relation to the amounts held in mortgage escrow accounts THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 1 of section 953 of the real property tax law, as added by chapter 440 of the laws of 1989, is amended to read as follows: 1. Every mortgage investing institution shall make all payments for taxes for which they hold real property tax escrow accounts, in a timely manner. NOTWITHSTANDING FEDERAL LAW, THE AMOUNT HELD IN SUCH ACCOUNTS MAY NOT EXCEED THE ESTIMATED ANNUAL AMOUNT OF THE TAXES THAT WILL BE PAID BY MORE THAN ONE-TWELFTH OF SUCH AMOUNT. S 2. Paragraph (a) of subdivision 2 of section 6-k of the banking law, as added by chapter 563 of the laws of 1992, is amended to read as follows: (a) Every mortgage investing institution shall make all payments for insurance for which they hold real property insurance escrow accounts in a timely manner. NOTWITHSTANDING FEDERAL LAW, THE AMOUNT HELD IN SUCH ACCOUNTS MAY NOT EXCEED THE ESTIMATED ANNUAL AMOUNT OF THE INSURANCE PREMIUMS THAT WILL BE PAID BY MORE THAN ONE-TWELFTH OF SUCH AMOUNT. S 3. This act shall take effect immediately. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD16870-01-0
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