senate Bill S886

Signed By Governor
2011-2012 Legislative Session

Prohibits compensation based on home loan terms by a mortgage broker or mortgage lender

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Archive: Last Bill Status - Signed by Governor


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

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Actions

view actions (16)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Aug 17, 2012 signed chap.404
Aug 06, 2012 delivered to governor
Jun 19, 2012 returned to senate
passed assembly
ordered to third reading rules cal.381
substituted for a7329
Mar 21, 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.314
Mar 06, 2012 notice of committee consideration - withdrawn
Feb 21, 2012 notice of committee consideration - requested
Jan 04, 2012 referred to banks
Jan 05, 2011 referred to banks

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Co-Sponsors

S886 - Details

See Assembly Version of this Bill:
A7329
Law Section:
Banking Law
Laws Affected:
Amd ยงยง590-b, 6-l & 6-m, Bank L
Versions Introduced in 2009-2010 Legislative Session:
S7669, A10977

S886 - Summary

Prohibits compensation based on home loan terms by mortgage brokers or mortgage lenders.

S886 - Sponsor Memo

S886 - Bill Text download pdf

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

                                   886

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced  by  Sen. KRUEGER -- 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 prohibiting compensation
  based on the terms of a home loan by  mortgage  brokers  and  mortgage
  lenders

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

  Section 1. Section 590-b of the banking law is amended by adding a new
subdivision 3-a to read as follows:
  3-A. IN CONNECTION WITH THE MAKING OR BROKERING OF  A  HOME  LOAN,  NO
PERSON  MAY  PROVIDE,  AND  NO  MORTGAGE  BROKER  OR MORTGAGE LENDER MAY
RECEIVE, DIRECTLY OR INDIRECTLY, ANY COMPENSATION THAT IS BASED  ON,  OR
VARIES  WITH,  THE  TERMS  OF  ANY HOME LOAN. THIS SUBDIVISION SHALL NOT
PROHIBIT COMPENSATION BASED ON THE PRINCIPAL BALANCE OF THE LOAN.
  S 2. Paragraph (s) of subdivision 2 of section 6-l of the banking law,
as amended by chapter 507 of the laws of 2009, is  amended  to  read  as
follows:
  (s) No [abusive] yield spread premiums. [In arranging a high-cost home
loan,  the  mortgage broker shall, within three days after receipt of an
application, disclose the exact amount and methodology of total  compen-
sation  that  the broker will receive. Such amount may be paid as direct
compensation from the lender, direct compensation from the borrower,  or
a combination of the two if permitted by applicable law.  The provisions
of  this  paragraph  shall  not  restrict  the  ability of a borrower to
utilize a yield spread premium in order to offset any up front costs  by
accepting  a higher interest rate if permitted by applicable law. If the
borrower chooses this option, any  compensation  from  the  lender  that
exceeds  the  amount  of  total  compensation owed to the broker must be
credited to the borrower. The superintendent shall  prescribe  the  form
that  such  disclosure  shall  take. This provision shall not restrict a

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

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