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Assembly Bill A1913A

Signed By Governor

2011-2012 Legislative Session

Prohibits home improvement contractors from acting on behalf of mortgage brokers

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Archive: Last Bill Status Via S4038 - Signed by Governor

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Bill Amendments

co-Sponsors

multi-Sponsors

2011-A1913 - Details

Law Section:
Banking Law
Laws Affected:
Add §595-c, Bank L
Versions Introduced in 2009-2010 Legislative Session:
A170

2011-A1913 - Summary

Prohibits home improvement contractors from also acting on behalf of mortgage brokers; prohibits a mortgage broker from paying a home improvement contractor directly unless they perform their own inspection of the completed work.

2011-A1913 - Bill Text download pdf 

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

                                  1913

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            January 12, 2011
                               ___________

Introduced  by  M. of A. JEFFRIES, DINOWITZ, PERRY -- Multi-Sponsored by
  -- M. of A. GLICK, WEINSTEIN -- read once and referred to the  Commit-
  tee on Banks

AN ACT to amend the banking law, in relation to the dealings of mortgage
  brokers and home improvement contractors

  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 595-c to
read as follows:
  S 595-C. REGULATION OF DEALINGS OF MORTGAGE BROKERS AND HOME  IMPROVE-
MENT CONTRACTORS. 1. A HOME IMPROVEMENT CONTRACTOR SHALL NOT REPRESENT A
MORTGAGE  BROKER  WHILE SOLICITING HOME IMPROVEMENT CONTRACTS. THE STAFF
OF A HOME IMPROVEMENT CONTRACTOR SHALL NOT ACT ON BEHALF OF  A  MORTGAGE
BROKER IN ANY TRANSACTION.
  2.  A  MORTGAGE  BROKER  SHALL  NOT  PAY A HOME IMPROVEMENT CONTRACTOR
DIRECTLY UNLESS THEY PERFORM THEIR OWN INSPECTION OF THE COMPLETED WORK.
  3. FOR THE PURPOSE OF  THIS  SECTION,  "HOME  IMPROVEMENT  CONTRACTOR"
MEANS  A  PERSON,  FIRM  OR  CORPORATION  WHICH  OWNS OR OPERATES A HOME
IMPROVEMENT BUSINESS OR WHO UNDERTAKES, OFFERS TO UNDERTAKE OR AGREES TO
PERFORM ANY HOME IMPROVEMENT FOR A FEE AND FOR WHOM THE TOTAL CASH PRICE
OF ALL OF HIS HOME IMPROVEMENT CONTRACTS WITH ALL HIS CUSTOMERS  EXCEEDS
ONE  THOUSAND  FIVE  HUNDRED DOLLARS DURING ANY PERIOD OF TWELVE CONSEC-
UTIVE MONTHS. HOME IMPROVEMENT CONTRACTOR DOES  NOT  INCLUDE  A  PERSON,
FIRM,  CORPORATION, LANDLORD, COOPERATIVE CORPORATION, CONDOMINIUM BOARD
OF MANAGERS, JOINT TENANT OR CO-TENANT THAT OWNS, IN WHOLE OR  IN  PART,
THE PROPERTY TO BE IMPROVED.
  S  2.  This  act shall take effect on the ninetieth day after it shall
have become a law.


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04664-01-1

co-Sponsors

multi-Sponsors

2011-A1913A - Details

Law Section:
Banking Law
Laws Affected:
Add §595-c, Bank L
Versions Introduced in 2009-2010 Legislative Session:
A170

2011-A1913A - Summary

Prohibits home improvement contractors from also acting on behalf of mortgage brokers; prohibits a mortgage broker from paying a home improvement contractor directly unless they perform their own inspection of the completed work.

2011-A1913A - Bill Text download pdf 

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

                                 1913--A
                                                        Cal. No. 102

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            January 12, 2011
                               ___________

Introduced  by  M. of A. JEFFRIES, DINOWITZ, PERRY -- Multi-Sponsored by
  -- M. of A.  GLICK, WEINSTEIN -- read once and referred to the Commit-
  tee on Banks -- passed  by  Assembly  and  delivered  to  the  Senate,
  recalled  from  the  Senate,  vote reconsidered, bill amended, ordered
  reprinted, retaining its place on the order of third reading

AN ACT to amend the banking law, in relation to the dealings of mortgage
  brokers and home improvement contractors

  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 595-c to
read as follows:
  S  595-C. REGULATION OF DEALINGS OF MORTGAGE BROKERS AND HOME IMPROVE-
MENT CONTRACTORS. 1. NO HOME IMPROVEMENT CONTRACTOR NOR  ANY  AGENTS  OR
SALESPERSONS THEREOF SHALL REPRESENT, ACT AS AN AGENT FOR, OR ADVERTISE,
PROMOTE  OR  ARRANGE FOR THE SERVICES OF A MORTGAGE BROKER OR ITS AFFIL-
IATE WHILE SOLICITING HOME IMPROVEMENT CONTRACTS NOR RECEIVE ANYTHING OF
VALUE FROM A MORTGAGE BROKER OR ITS AFFILIATE  FOR  THE  REFERRAL  OF  A
BORROWER  TO A MORTGAGE BROKER. THE STAFF OF A HOME IMPROVEMENT CONTRAC-
TOR SHALL NOT ACT ON BEHALF OF A MORTGAGE BROKER IN ANY TRANSACTION.
  2. A MORTGAGE BROKER SHALL  NOT  PAY  A  HOME  IMPROVEMENT  CONTRACTOR
DIRECTLY.  A  HOME  IMPROVEMENT  CONTRACTOR MAY RECEIVE PAYMENT FROM THE
PROCEEDS OF A HOME IMPROVEMENT LOAN PAYABLE SOLELY TO THE  BORROWER  OR,
AT  THE  ELECTION  OF  THE  BORROWER, THROUGH AN INDEPENDENT THIRD PARTY
ESCROW AGENT IN ACCORDANCE WITH  THE  TERMS  ESTABLISHED  IN  A  WRITTEN
AGREEMENT SIGNED BY THE BORROWER, THE LENDER AND THE CONTRACTOR PRIOR TO
DISBURSEMENT.  A  MORTGAGE  BROKER SHALL NOT OFFER A HOMEOWNER DIFFERENT
LOAN TERMS CONTINGENT  ON  THE  HOMEOWNER  EXECUTING  AN  AGREEMENT  FOR
PAYMENT THROUGH AN INDEPENDENT THIRD PARTY AS DESCRIBED IN THE PRECEDING
SENTENCE.  ANY  SUCH  AGREEMENT  SHALL  CONTAIN  A CLEAR AND CONSPICUOUS
DISCLOSURE: YOU ARE NOT REQUIRED TO  EXECUTE  THIS  AGREEMENT.  YOU  MAY
INSTEAD  RECEIVE PAYMENT DIRECTLY FROM (NAME OF MORTGAGE BROKER).  (NAME

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

co-Sponsors

multi-Sponsors

2011-A1913B (ACTIVE) - Details

Law Section:
Banking Law
Laws Affected:
Add §595-c, Bank L
Versions Introduced in 2009-2010 Legislative Session:
A170

2011-A1913B (ACTIVE) - Summary

Prohibits home improvement contractors from also acting on behalf of mortgage brokers; prohibits a mortgage broker from paying a home improvement contractor directly unless they perform their own inspection of the completed work.

2011-A1913B (ACTIVE) - Bill Text download pdf 

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

                                 1913--B
                                                        Cal. No. 102

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            January 12, 2011
                               ___________

Introduced  by  M. of A. JEFFRIES, DINOWITZ, PERRY -- Multi-Sponsored by
  -- M. of A.  GLICK, WEINSTEIN -- read once and referred to the Commit-
  tee on Banks -- passed  by  Assembly  and  delivered  to  the  Senate,
  recalled  from  the  Senate,  vote reconsidered, bill amended, ordered
  reprinted, retaining its place on the order of third reading -- passed
  by Assembly and delivered to the Senate,  recalled  from  the  Senate,
  vote  reconsidered,  bill  amended,  ordered  reprinted, retaining its
  place on the order of third reading

AN ACT to amend the banking law, in relation to the dealings of mortgage
  brokers and home improvement contractors

  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 595-c to
read as follows:
  S  595-C. REGULATION OF DEALINGS OF MORTGAGE BROKERS AND HOME IMPROVE-
MENT CONTRACTORS. 1. NO HOME IMPROVEMENT CONTRACTOR NOR  ANY  AGENTS  OR
SALESPERSONS THEREOF SHALL REPRESENT, ACT AS AN AGENT FOR, OR ADVERTISE,
PROMOTE  OR  ARRANGE FOR THE SERVICES OF A MORTGAGE BROKER OR ITS AFFIL-
IATE WHILE SOLICITING HOME IMPROVEMENT CONTRACTS NOR RECEIVE ANYTHING OF
VALUE FROM A MORTGAGE BROKER OR ITS AFFILIATE  FOR  THE  REFERRAL  OF  A
BORROWER  TO A MORTGAGE BROKER. THE STAFF OF A HOME IMPROVEMENT CONTRAC-
TOR SHALL NOT ACT ON BEHALF OF A MORTGAGE BROKER IN ANY TRANSACTION.
  2. WHERE A MORTGAGE BROKER HAS SOLICITED, PROCESSED, PLACED OR NEGOTI-
ATED A MORTGAGE LOAN, A HOME IMPROVEMENT CONTRACTOR SHALL  NOT  BE  PAID
DIRECTLY  BUT  INSTEAD  MAY  RECEIVE PAYMENT FROM THE PROCEEDS OF A HOME
IMPROVEMENT LOAN PAYABLE SOLELY TO THE BORROWER OR, AT THE  ELECTION  OF
THE BORROWER, THROUGH AN INDEPENDENT THIRD PARTY ESCROW AGENT IN ACCORD-
ANCE  WITH  THE  TERMS  ESTABLISHED IN A WRITTEN AGREEMENT SIGNED BY THE
BORROWER, THE LENDER AND THE CONTRACTOR PRIOR TO DISBURSEMENT.  A  MORT-
GAGE  BROKER SHALL NOT OFFER A HOMEOWNER DIFFERENT LOAN TERMS CONTINGENT
ON THE HOMEOWNER EXECUTING AN AGREEMENT FOR PAYMENT THROUGH AN INDEPEND-

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

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