senate Bill S3781A

2011-2012 Legislative Session

Relates to unauthorized entities, unregistered mortgage brokers and mortgage fraud

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Archive: Last Bill Status - Passed Senate


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

view actions (20)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 20, 2012 referred to banks
delivered to assembly
passed senate
Mar 13, 2012 advanced to third reading
Mar 12, 2012 2nd report cal.
Mar 07, 2012 1st report cal.315
Feb 29, 2012 print number 3781b
amend and recommit to banks
Jan 19, 2012 print number 3781a
amend and recommit to banks
Jan 04, 2012 referred to banks
returned to senate
died in assembly
Jun 07, 2011 referred to banks
delivered to assembly
passed senate
Jun 06, 2011 advanced to third reading
Jun 02, 2011 2nd report cal.
Jun 01, 2011 1st report cal.903
Mar 03, 2011 referred to banks

Bill Amendments

Original
A
B (Active)
Original
A
B (Active)

S3781 - Details

Current Committee:
Law Section:
Banking Law
Laws Affected:
Add §78-a, amd §§590 & 598, Bank L; amd Art 187 Art Head, amd §§187.00, 187.05, 187.10, 187.15, 187.20 & 187.25, Pen L
Versions Introduced in 2009-2010 Legislative Session:
S4871

S3781 - Summary

Relates to unauthorized entities, unregistered mortgage brokers and mortgage fraud; establishes additional penalties against unlicensed or unregistered persons or entities engaging in activities after receiving a cease and desist notice; relates to the crime of mortgage fraud.

S3781 - Sponsor Memo

S3781 - Bill Text download pdf

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

                                  3781

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              March 3, 2011
                               ___________

Introduced  by  Sen.  SMITH  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Banks

AN ACT to amend the banking law and the penal law, in relation to  unau-
  thorized entities, unregistered mortgage brokers and mortgage fraud

  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 78-a  to
read as follows:
  S  78-A.  UNAUTHORIZED  ENTITIES.  THE  CRIMINAL INVESTIGATIONS BUREAU
SHALL REFER ANY INSTANCES OF A PERSON, PARTNERSHIP, ASSOCIATION,  CORPO-
RATION  OR  OTHER  ENTITY  WHICH  IS  OPERATING WITHOUT BEING CHARTERED,
LICENSED OR REGISTERED AS REQUIRED UNDER THIS CHAPTER  TO  THE  ATTORNEY
GENERAL  AND  TO  ANY OTHER FEDERAL, STATE OR LOCAL AGENCY OR ENTITY FOR
APPROPRIATE ENFORCEMENT ACTION. AT LEAST EVERY SIX MONTHS, THE  ATTORNEY
GENERAL  SHALL PROVIDE THE BUREAU WITH A WRITTEN UPDATE OF THE STATUS OF
ANY ENFORCEMENT ACTIONS IT HAS TAKEN AGAINST SUCH PERSONS OR ENTITIES.
  S 2. Subdivision 5 of section 590 of the banking  law  is  amended  by
adding a new paragraph (f) to read as follows:
  (F)  NO  MORTGAGE BANKER, MORTGAGE BROKER OR EXEMPT ORGANIZATION SHALL
CONDUCT BUSINESS WITH ANY PERSON, PARTNERSHIP, ASSOCIATION,  CORPORATION
OR OTHER ENTITY WHICH IT KNOWS OR SHOULD HAVE KNOWN IS ACTING AS A MORT-
GAGE BANKER OR A MORTGAGE BROKER WITHOUT BEING LICENSED OR REGISTERED AS
REQUIRED  BY  THIS ARTICLE. A MORTGAGE BANKER, MORTGAGE BROKER OR EXEMPT
ORGANIZATION SHALL PROMPTLY NOTIFY THE DEPARTMENT OF ANY SUCH UNLICENSED
OR UNREGISTERED OPERATIONS.
  S 3. Subdivision 5 of section 598 of the  banking  law,  as  added  by
chapter 571 of the laws of 1986, is amended to read as follows:
  5.  Civil  penalties  assessable  against  unlicensed  or unregistered
persons or entities. If any non-exempt unlicensed or unregistered person
or entity engages in activities encompassed by this article, he shall be
liable to any person or entity affected by such activities for a sum  of

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09855-01-1

S3781A - Details

Current Committee:
Law Section:
Banking Law
Laws Affected:
Add §78-a, amd §§590 & 598, Bank L; amd Art 187 Art Head, amd §§187.00, 187.05, 187.10, 187.15, 187.20 & 187.25, Pen L
Versions Introduced in 2009-2010 Legislative Session:
S4871

S3781A - Summary

Relates to unauthorized entities, unregistered mortgage brokers and mortgage fraud; establishes additional penalties against unlicensed or unregistered persons or entities engaging in activities after receiving a cease and desist notice; relates to the crime of mortgage fraud.

S3781A - Sponsor Memo

S3781A - Bill Text download pdf

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

                                 3781--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              March 3, 2011
                               ___________

Introduced  by  Sen.  SMITH  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Banks  --  recommitted  to
  the  Committee  on  Banks  in accordance with Senate Rule 6, sec. 8 --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted to said committee

AN  ACT to amend the banking law and the penal law, in relation to unau-
  thorized entities, unregistered mortgage brokers and mortgage fraud

  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 78-a to
read as follows:
  S 78-A. UNAUTHORIZED  ENTITIES.  THE  CRIMINAL  INVESTIGATIONS  BUREAU
SHALL  REFER ANY INSTANCES OF A PERSON, PARTNERSHIP, ASSOCIATION, CORPO-
RATION OR OTHER ENTITY  WHICH  IS  OPERATING  WITHOUT  BEING  CHARTERED,
LICENSED  OR  REGISTERED  AS REQUIRED UNDER THIS CHAPTER TO THE ATTORNEY
GENERAL AND TO ANY OTHER FEDERAL, STATE OR LOCAL AGENCY  OR  ENTITY  FOR
APPROPRIATE  ENFORCEMENT ACTION. AT LEAST EVERY SIX MONTHS, THE ATTORNEY
GENERAL SHALL PROVIDE THE BUREAU WITH A WRITTEN UPDATE OF THE STATUS  OF
ANY ENFORCEMENT ACTIONS IT HAS TAKEN AGAINST SUCH PERSONS OR ENTITIES.
  S  2.  Subdivision  5  of section 590 of the banking law is amended by
adding a new paragraph (f) to read as follows:
  (F) NO MORTGAGE BANKER, MORTGAGE BROKER OR EXEMPT  ORGANIZATION  SHALL
CONDUCT  BUSINESS WITH ANY PERSON, PARTNERSHIP, ASSOCIATION, CORPORATION
OR OTHER ENTITY WHICH IT KNOWS OR SHOULD HAVE KNOWN IS ACTING AS A MORT-
GAGE BANKER OR A MORTGAGE BROKER WITHOUT BEING LICENSED OR REGISTERED AS
REQUIRED BY THIS ARTICLE. A MORTGAGE BANKER, MORTGAGE BROKER  OR  EXEMPT
ORGANIZATION SHALL PROMPTLY NOTIFY THE DEPARTMENT OF ANY SUCH UNLICENSED
OR UNREGISTERED OPERATIONS.
  S  3.  Subdivision  5  of  section 598 of the banking law, as added by
chapter 571 of the laws of 1986, is amended to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09855-02-2

S3781B (ACTIVE) - Details

Current Committee:
Law Section:
Banking Law
Laws Affected:
Add §78-a, amd §§590 & 598, Bank L; amd Art 187 Art Head, amd §§187.00, 187.05, 187.10, 187.15, 187.20 & 187.25, Pen L
Versions Introduced in 2009-2010 Legislative Session:
S4871

S3781B (ACTIVE) - Summary

Relates to unauthorized entities, unregistered mortgage brokers and mortgage fraud; establishes additional penalties against unlicensed or unregistered persons or entities engaging in activities after receiving a cease and desist notice; relates to the crime of mortgage fraud.

S3781B (ACTIVE) - Bill Text download pdf

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

                                 3781--B

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              March 3, 2011
                               ___________

Introduced  by  Sen.  SMITH  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Banks  --  recommitted  to
  the  Committee  on  Banks  in accordance with Senate Rule 6, sec. 8 --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted  to  said committee -- committee discharged, bill amended,
  ordered reprinted as amended and recommitted to said committee

AN ACT to amend the banking law and the penal law, in relation to  unau-
  thorized entities, unregistered mortgage brokers and mortgage fraud

  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 78-a  to
read as follows:
  S  78-A.  UNAUTHORIZED  ENTITIES.  THE  FINANCIAL  FRAUDS AND CONSUMER
PROTECTION UNIT OF THE DEPARTMENT OF FINANCIAL SERVICES SHALL REFER  ANY
INSTANCES  OF  A  PERSON, PARTNERSHIP, ASSOCIATION, CORPORATION OR OTHER
ENTITY WHICH IS OPERATING WITHOUT BEING CHARTERED,  LICENSED  OR  REGIS-
TERED  AS REQUIRED UNDER THIS CHAPTER TO THE ATTORNEY GENERAL AND TO ANY
OTHER FEDERAL, STATE OR LOCAL AGENCY OR ENTITY FOR APPROPRIATE  ENFORCE-
MENT  ACTION.  AT  LEAST  EVERY  SIX  MONTHS, THE ATTORNEY GENERAL SHALL
PROVIDE THE UNIT WITH A WRITTEN UPDATE OF THE STATUS OF ANY  ENFORCEMENT
ACTIONS IT HAS TAKEN AGAINST SUCH PERSONS OR ENTITIES.
  S  2. Paragraph (e) of subdivision 5 of section 590 of the banking law
is relettered paragraph (f) and a new paragraph (e) is added to read  as
follows:
  (E)  NO  MORTGAGE BANKER, MORTGAGE BROKER OR EXEMPT ORGANIZATION SHALL
CONDUCT BUSINESS WITH ANY PERSON, PARTNERSHIP, ASSOCIATION,  CORPORATION
OR OTHER ENTITY WHICH IT KNOWS OR SHOULD HAVE KNOWN IS ACTING AS A MORT-
GAGE BANKER OR A MORTGAGE BROKER WITHOUT BEING LICENSED OR REGISTERED AS
REQUIRED  BY  THIS ARTICLE. A MORTGAGE BANKER, MORTGAGE BROKER OR EXEMPT
ORGANIZATION SHALL PROMPTLY NOTIFY THE DEPARTMENT OF ANY SUCH UNLICENSED
OR UNREGISTERED OPERATIONS.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09855-03-2

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