senate Bill S886

Signed By Governor
2011-2012 Legislative Session

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

download bill text pdf

Sponsored By

Archive: Last Bill Status - Signed by Governor


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

do you support this bill?

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Mar 06, 2012 notice of committee consideration - withdrawn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

Votes

view votes

Co-Sponsors

S886 - Bill 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 - Bill Texts

view summary

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

view sponsor memo
BILL NUMBER:S886

TITLE OF BILL:
CONCURRENT RESOLUTION OF THE SENATE AND ASSEMBLY
proposing an amendment to
section 2 of article 6 of the constitution, in relation to persons
appointed to the court of appeals, and proposing an amendment to
section 25 of article 6 of the constitution,
in relation to service by retired justices and requiring judges
of the court of appeals to retire at age 80

PURPOSE OF BILL:
To raise from 76 to 80 the maximum age that retired judges may be
certified to continue to serve, and to raise the retirement age for
judges of the Court of Appeals.

SUMMARY OF PROVISIONS OF BILL:
Amends subdivision (e) of section 2 of Article 6 and subdivision (b)
of section 25 of Article 6 of the New York State Constitution to
increase the maximum age for which a judge, justice or retired
justice can serve.

JUSTIFICATION:
The State Constitution requires judges to retire at the end of the
calendar year in which they turn 70. It also authorizes judges to be
certified to continue to serve up to three times in two year
increments, until age 76. The certification must find that that his
or her services are necessary to expedite the business of the Court,
and that he or she is physically and mentally competent to fully
perform the duties of the office.

This constitutional amendment would raise the age through which
retired judges can continue to serve from 76 to 80, allowing the
State to retain experienced and able judges who are willing to work.
In addition, this measure would change the retirement age for judges
of the Court of Appeals from 70 to 80, provided that no judge could
be appointed to the Court of Appeals after they have reached the last
day of December of the year in which they turn 70, consistent with
the existing constitutional provision.

In 1999, The Office of Court Administration's Task Force on Mandatory
Retirement of Judges concluded that "it is in the best interests of
the judiciary and the people of the State of New York to amend the
laws governing mandatory retirement of judges." The two
recommendations made in that, report - creation of a "senior status"
and expansion of the certification process to judges not covered by
it - were not acted upon.

This measure takes a different approach - amending the Constitution to
increase the age until which judges can be certified from 76 to 80.
Raising the age that retired judges can serve from 76 to 80 will

enable the state judiciary to continue to benefit from the service of
many dedicated, experienced and productive judges currently being lost.

In addition, this bill provides that Court of Appeals judges would be
able to serve out the end of their fourteen years terms without being
required to retire at age 70, although appointment past the age of 70
would not be possible.

LEGISLATIVE HISTORY:
S.5827 of 2011: Passed Senate and Assembly. Delivered to Secretary of
State

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None anticipated.

EFFECTIVE DATE:
RESOLVED (if the Assembly concur), That the foregoing be referred to the
first regular legislative session convening after the next succeeding
general election of members of the assembly, and, in conformity with
section 1 of article 19 of the constitution, be published for 3 months
previous to the time of such election.

view full 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.
                                                           LBD03866-01-1

S. 886                              2

broker from accepting a lesser amount of  compensation.]  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 INDIRECT-
LY,  ANY COMPENSATION THAT IS BASED ON, OR VARIES WITH, THE TERMS OF ANY
HOME LOAN. THIS PARAGRAPH SHALL NOT PROHIBIT COMPENSATION BASED  ON  THE
PRINCIPAL BALANCE OF THE LOAN.
  S 3. Paragraph (n) of subdivision 2 of section 6-m of the banking law,
as  amended  by  chapter  507 of the laws of 2009, is amended to read as
follows:
  (n) No [abusive] yield spread premiums. [In arranging a subprime  home
loan,  the  mortgage broker shall, within three days after receipt of an
application, disclose the exact amount and methodology  for  determining
the  total compensation 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
upfront costs by accepting a higher interest rate if permitted by appli-
cable law. If the borrower chooses this option,  any  compensation  from
the  lender  that exceeds the exact 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 paragraph shall
not  restrict  a broker from accepting a lesser amount of compensation.]
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 PARAGRAPH SHALL NOT PROHIBIT COMPENSATION
BASED ON THE PRINCIPAL BALANCE OF THE LOAN.
  S 4. This act shall take effect immediately.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.