Senate Bill S3215

2017-2018 Legislative Session

Relates to unauthorized entities, unregistered mortgage brokers and mortgage fraud

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Senate Committee Banks Committee


  • 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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2017-S3215 (ACTIVE) - Details

Current Committee:
Senate Banks
Law Section:
Banking Law
Laws Affected:
Add §78-a, amd §§590 & 598, Bank L; amd Art 187 Art Head, amd §§187.00, 187.05, 187.10, 187.15, 187.20 & 187.25, Pen L
Versions Introduced in Other Legislative Sessions:
2009-2010: S4871
2011-2012: S3781
2013-2014: S2869
2015-2016: S3777
2019-2020: S2088
2021-2022: S1565
2023-2024: S1144

2017-S3215 (ACTIVE) - Summary

Relates to unauthorized entities, unregistered mortgage brokers and mortgage fraud; establishes additional penalties against unlicensed or unregistered persons or entities engaging in activities after receiving a cease and desist notice; relates to the crime of mortgage fraud.

2017-S3215 (ACTIVE) - Sponsor Memo

2017-S3215 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3215
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 20, 2017
                                ___________
 
 Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Banks
 
 AN ACT to amend the banking law and the penal law, in relation to  unau-
   thorized entities, unregistered mortgage brokers and mortgage fraud
 
   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 78-a  to
 read as follows:
   §  78-A.  UNAUTHORIZED  ENTITIES.  THE  FINANCIAL  FRAUDS AND CONSUMER
 PROTECTION UNIT OF THE DEPARTMENT OF FINANCIAL SERVICES SHALL REFER  ANY
 INSTANCES  OF  A  PERSON, PARTNERSHIP, ASSOCIATION, CORPORATION OR OTHER
 ENTITY WHICH IS OPERATING WITHOUT BEING CHARTERED,  LICENSED  OR  REGIS-
 TERED  AS REQUIRED UNDER THIS CHAPTER TO THE ATTORNEY GENERAL AND TO ANY
 OTHER FEDERAL, STATE OR LOCAL AGENCY OR ENTITY FOR APPROPRIATE  ENFORCE-
 MENT  ACTION.  AT  LEAST  EVERY  SIX  MONTHS, THE ATTORNEY GENERAL SHALL
 PROVIDE THE UNIT WITH A WRITTEN UPDATE OF THE STATUS OF ANY  ENFORCEMENT
 ACTIONS IT HAS TAKEN AGAINST SUCH PERSONS OR ENTITIES.
   §  2. Paragraph (e) of subdivision 5 of section 590 of the banking law
 is relettered paragraph (f) and a new paragraph (e) is added to read  as
 follows:
   (E)  NO  MORTGAGE BANKER, MORTGAGE BROKER OR EXEMPT ORGANIZATION SHALL
 CONDUCT BUSINESS WITH ANY PERSON, PARTNERSHIP, ASSOCIATION,  CORPORATION
 OR OTHER ENTITY WHICH IT KNOWS OR SHOULD HAVE KNOWN IS ACTING AS A MORT-
 GAGE BANKER OR A MORTGAGE BROKER WITHOUT BEING LICENSED OR REGISTERED AS
 REQUIRED  BY  THIS ARTICLE. A MORTGAGE BANKER, MORTGAGE BROKER OR EXEMPT
 ORGANIZATION SHALL PROMPTLY NOTIFY THE DEPARTMENT OF ANY SUCH UNLICENSED
 OR UNREGISTERED OPERATIONS.
   § 3. Subdivision 5 of section 598 of the  banking  law,  as  added  by
 chapter 571 of the laws of 1986, is amended to read as follows:
   5.  Civil  penalties  assessable  against  unlicensed  or unregistered
 persons or entities. If any non-exempt unlicensed or unregistered person
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

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