|Assembly Actions - Lowercase
Senate Actions - UPPERCASE
|Jan 08, 2014||referred to banks|
|Jan 24, 2013||referred to banks|
senate Bill S2867
Archive: Last Bill Status - In Committee
- In Committee
- On Floor Calendar
- Passed Senate
- Passed Assembly
- Delivered to Governor
- Signed/Vetoed by Governor
S2867 - Details
S2867 - Summary
Relates to refinancing of an existing mortgage loan; provides for a separate disclosure which compares monthly payments under the previous mortgage with the combined monthly payments for the new mortgage loan, property tax and insurance.
S2867 - Sponsor Memo
BILL NUMBER:S2867 TITLE OF BILL: An act to amend the banking law, in relation to refi- nancing of an existing mortgage loan PURPOSE: To ensure that consumers are appropriately informed when refi- nancing a mortgage and have the ability to compare the total monthly costs of the previous loan with the total monthly costs of the new loan. SUMMARY OF PROVISIONS: Section 595-a(3) of the Banking Law is amended to require mortgage brokers, mortgage bankers or exempt organizations to provide a special disclosure for any mortgage refinancing where the mortgagor will no longer be paying property tax or insurance premiums into an escrow account. In those cases, the disclosure must compare the total monthly payments under the previous loan with the combined monthly payments for the new loan, real property taxes and insurance. JUSTIFICATION: Consumers may refinance a mortgage loan for numerous reasons. An important consideration is the monthly cost of the new loan versus the monthly cost of the previous loan. Unfortunately, in some cases, this comparison may be misleading or invalid because the homeowner does not realize or understand that the new total does not include property tax or insurance payments, which may
S2867 - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 2867 2013-2014 Regular Sessions I N S E N A T E January 24, 2013 ___________ Introduced by Sen. SMITH -- 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 refinancing of an exist- ing mortgage loan THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 3 of section 595-a of the banking law is amended by adding a new paragraph (e) to read as follows: (E) FOR ANY REFINANCING OF AN EXISTING MORTGAGE LOAN, WHERE THE MORT- GAGOR WILL NO LONGER BE PAYING PROPERTY TAX OR INSURANCE PAYMENTS INTO AN ESCROW ACCOUNT, EACH MORTGAGE BROKER, MORTGAGE BANKER AND EXEMPT ORGANIZATION SHALL, PRIOR TO CLOSING, PROVIDE A SEPARATE DISCLOSURE WHICH COMPARES THE TOTAL MONTHLY PAYMENTS UNDER THE PREVIOUS MORTGAGE WITH THE COMBINED MONTHLY PAYMENTS FOR THE NEW MORTGAGE LOAN, REAL PROP- ERTY TAXES AND INSURANCE. THE BANKING BOARD MAY SPECIFY THE FORM, CONTENT AND TIMING OF SUCH DISCLOSURE. S 2. This act shall take effect on the one hundred eightieth day after it shall have become a law. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD07213-01-3
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