senate Bill S19

2013-2014 Legislative Session

Enacts the Home Equity Fraud Act to control improper activities by home improvement contractors and finance companies

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Sponsored By

Archive: Last Bill Status - In Committee

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

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view actions (2)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2014 referred to banks
Jan 09, 2013 referred to banks


S19 - Details

See Assembly Version of this Bill:
Current Committee:
Law Section:
Banking Law
Laws Affected:
Amd §§595-a, 347 & 592-a, Bank L; add §254-e, RP L; add §§1308 & 1309, RPAP L; amd §771, add §771-b, Gen Bus L; add §5-336, Gen Ob L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S7271, S7471, A2378
2009-2010: A3386

S19 - Summary

Enacts the "Home Equity Fraud Act" to control improper activities by home improvement contractors and finance companies; prohibits mortgage brokers or agents from acting as home improvement contractors; provides additional protections for mortgagors and home owners.

S19 - Sponsor Memo

S19 - Bill Text download pdf

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


                       2013-2014 Regular Sessions

                            I N  S E N A T E


                             January 9, 2013

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

AN ACT to amend the banking law, the real property law, the real proper-
  ty actions and proceedings law,  the  general  business  law  and  the
  general  obligations  law,  in  relation  to enacting the "Home Equity
  Fraud Act"


  Section  1.  Short  title. This act shall be known and may be cited as
the "Home Equity Fraud Act".
  S 2. Legislative findings. The  legislature  hereby  finds  that  many
senior  citizens  and minority homeowners in New York have been targeted
by unethical home improvement contractors, mortgage companies,  mortgage
brokers  and finance companies who induce these homeowners into entering
into high cost high interest rate mortgage agreements which the homeown-
er is often unable to afford with the intent of foreclosing on the  home
and stripping the equity.
  The  legislature  further  finds  that  in order to entice people into
entering into these agreements they are promised refinancing of  primary
mortgages,  consolidation  of  loans and outstanding bills and are given
cash but often are not told or do not understand that they are  securing
the  loan with a mortgage lien on their home which will lead to foreclo-
sure in the event of default. Often  these  loans  are  documented  with
false and misleading documentation provided by brokers which could easi-
ly  be determined to be false if checked by the lender. Despite prohibi-
tions contained in federal law many of these loans are based  on  equity
in  the  home  and  not  on the borrower's ability to pay. Since many of
these homeowners live on a fixed income, they are  unable  to  make  the
required  payments  and end up losing their homes. This practice appears

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


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