Assembly Bill A8204

2019-2020 Legislative Session

Relates to unauthorized entities, unregistered mortgage brokers and mortgage fraud

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Archive: Last Bill Status - In Assembly 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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2019-A8204 (ACTIVE) - Details

See Senate Version of this Bill:
S2088
Current Committee:
Assembly 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
2017-2018: S3215
2021-2022: A3882, S1565
2023-2024: A1153, S1144

2019-A8204 (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.

2019-A8204 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8204
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               June 7, 2019
                                ___________
 
 Introduced  by M. of A. VANEL -- read once and referred 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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