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Assembly Bill A5302

2011-2012 Legislative Session

Requires mortgagee banks to provide notice to mortgagors when personal mortgage insurance is no longer required

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Archive: Last Bill Status - In Assembly Committee

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2011-A5302 (ACTIVE) - Details

Current Committee:
Assembly Banks
Law Section:
Banking Law
Laws Affected:
Add ยง6-n, Bank L
Versions Introduced in Other Legislative Sessions:
2009-2010: A1430
2013-2014: A2801
2015-2016: A3894

2011-A5302 (ACTIVE) - Summary

Requires mortgagee banks to provide written notice to mortgagor when such mortgagor is no longer required to maintain personal mortgage insurance coverage; provides such notice shall be delivered to the mortgagor within thirty days of the date upon which the mortgagor shall have acquired sufficient equity in real property subject to the mortgage so as to eliminate the necessity for personal mortgage insurance.

2011-A5302 (ACTIVE) - Bill Text download pdf 

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

                                  5302

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            February 15, 2011
                               ___________

Introduced by M. of A. WRIGHT -- read once and referred to the Committee
  on Banks

AN  ACT  to  amend  the  banking  law, in relation to requiring mortgage
  investing institutions to provide notice when personal mortgage insur-
  ance is no longer required

  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 6-n to
read as follows:
  S 6-N. PERSONAL MORTGAGE INSURANCE. 1. DEFINITIONS. AS  USED  IN  THIS
SECTION:
  (A)  "MORTGAGE  INVESTING  INSTITUTION" MEANS ANY BANK, TRUST COMPANY,
NATIONAL BANK, SAVINGS  BANK,  SAVINGS  AND  LOAN  ASSOCIATION,  FEDERAL
SAVINGS  BANK,  FEDERAL  SAVINGS  AND  LOAN ASSOCIATION, PRIVATE BANKER,
CREDIT UNION, FEDERAL CREDIT UNION, INVESTMENT  COMPANY,  PENSION  FUND,
LICENSED  MORTGAGE BANKER OR ANY OTHER ENTITY WHICH REQUIRES A MORTGAGOR
TO MAINTAIN PERSONAL MORTGAGE INSURANCE.
  (B) "MORTGAGOR" MEANS A PERSON OR PERSONS HAVING TITLE TO AND  OCCUPY-
ING  A  ONE  TO FOUR FAMILY RESIDENCE LOCATED IN THIS STATE AND WHICH IS
SUBJECT TO A MORTGAGE.
  (C) "PERSONAL MORTGAGE INSURANCE" MEANS A  POLICY  OF  INSURANCE,  THE
PREMIUMS  FOR WHICH ARE PAID BY A MORTGAGOR, WHICH PROVIDES COVERAGE FOR
THE DIFFERENCE BETWEEN THE PRINCIPAL OWED ON A MORTGAGE AND  THE  AMOUNT
WHICH  WOULD  BE  DERIVED  AT  A  FORECLOSURE  SALE OF THE REAL PROPERTY
SUBJECT TO SUCH MORTGAGE.
  2. NOTICE. EVERY MORTGAGE INVESTING INSTITUTION SHALL PROVIDE  WRITTEN
NOTICE TO A MORTGAGOR WHEN SUCH MORTGAGOR IS NO LONGER REQUIRED TO MAIN-
TAIN  PERSONAL  MORTGAGE INSURANCE COVERAGE. SUCH NOTICE SHALL BE DELIV-
ERED TO THE MORTGAGOR WITHIN THIRTY DAYS OF  THE  DATE  UPON  WHICH  THE
MORTGAGOR  SHALL  HAVE  ACQUIRED  SUFFICIENT EQUITY IN THE REAL PROPERTY

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03325-01-1

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