Assembly Bill A8909

Signed By Governor
2011-2012 Legislative Session

Relates to the dealings of mortgage brokers and home improvement contractors

download bill text pdf

Sponsored By

Archive: Last Bill Status - Signed by Governor

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

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2011-A8909 (ACTIVE) - Details

See Senate Version of this Bill:
S6124
Law Section:
Banking Law
Laws Affected:
Amd §595-c, Bank L

2011-A8909 (ACTIVE) - Summary

Relates to the dealings of mortgage brokers and home improvement contractors; exempts from provisions relating to payment of mortgage proceeds to a borrower or third party, rather than directly to a home improvement contractor, those home improvement loans insured by the FHA under the National Housing Act or the Energy Policy Act of 1992.

2011-A8909 (ACTIVE) - Bill Text download pdf 

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

                                  8909

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 4, 2012
                               ___________

Introduced  by  M. of A. JEFFRIES, ROBINSON -- read once and referred to
  the Committee 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. Subdivision 2 of section 595-c of the banking law, as added
by chapter 593 of the laws of 2011, is amended to read as follows:
  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-
ent  third party as described in the preceding sentence. Any such agree-
ment shall contain a clear  and  conspicuous  disclosure:  YOU  ARE  NOT
REQUIRED  TO  EXECUTE  THIS  AGREEMENT.  YOU MAY INSTEAD RECEIVE PAYMENT
DIRECTLY.  (NAME OF MORTGAGE BROKER) MAY NOT OFFER YOU  DIFFERENT  TERMS
ON YOUR LOAN TO SIGN THIS AGREEMENT.  THE PROVISIONS OF THIS SUBDIVISION
SHALL  NOT APPLY TO A HOME IMPROVEMENT LOAN INSURED BY THE FEDERAL HOUS-
ING ADMINISTRATION UNDER SECTION 203(K) OF THE NATIONAL HOUSING ACT,  12
U.S.C.  1709(K), OR TO AMOUNTS ADDED TO A FEDERAL HOUSING ADMINISTRATION
INSURED MORTGAGE UNDER THE ENERGY EFFICIENCY MORTGAGE PROGRAM ORIGINALLY
ESTABLISHED UNDER SECTION 106 OF THE ENERGY POLICY ACT OF 1992, AS  FROM
TIME TO TIME AMENDED.
  S  2.  This  act  shall  take  effect on the same date and in the same
manner as section 1 of chapter 593 of the laws of 2011, takes effect.


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD12084-02-2

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