Senate Bill S1144A

Signed By Governor
2023-2024 Legislative Session

Relates to unregistered and unlicensed mortgage brokers

download bill text pdf

Sponsored By

Current Bill Status Via A1153 - 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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Bill Amendments

co-Sponsors

2023-S1144 - Details

See Assembly Version of this Bill:
A1153
Law Section:
Banking Law
Laws Affected:
Amd §§590 & 598, Bank L
Versions Introduced in Other Legislative Sessions:
2009-2010: S4871
2011-2012: S3781
2013-2014: S2869
2015-2016: S3777
2017-2018: S3215
2019-2020: S2088, A8204
2021-2022: S1565, A3882

2023-S1144 - Summary

Relates to unregistered and unlicensed mortgage brokers; establishes additional penalties against unlicensed or unregistered persons or entities engaging in activities after receiving a cease and desist notice.

2023-S1144 - Sponsor Memo

2023-S1144 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1144
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 10, 2023
                                ___________
 
 Introduced  by Sens. SANDERS, MANNION -- 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.
                                                            LBD03777-01-3
              

co-Sponsors

2023-S1144A (ACTIVE) - Details

See Assembly Version of this Bill:
A1153
Law Section:
Banking Law
Laws Affected:
Amd §§590 & 598, Bank L
Versions Introduced in Other Legislative Sessions:
2009-2010: S4871
2011-2012: S3781
2013-2014: S2869
2015-2016: S3777
2017-2018: S3215
2019-2020: S2088, A8204
2021-2022: S1565, A3882

2023-S1144A (ACTIVE) - Summary

Relates to unregistered and unlicensed mortgage brokers; establishes additional penalties against unlicensed or unregistered persons or entities engaging in activities after receiving a cease and desist notice.

2023-S1144A (ACTIVE) - Sponsor Memo

2023-S1144A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  1144--A
     Cal. No. 83
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 10, 2023
                                ___________
 
 Introduced  by Sens. SANDERS, MANNION -- read twice and ordered printed,
   and when printed to be committed to the Committee on Banks -- reported
   favorably from said committee and committed to the Committee on  Rules
   -- reported favorably from said committee, ordered to a third reading,
   passed  by Senate and delivered to the Assembly, recalled, vote recon-
   sidered, restored to third reading,  amended  and  ordered  reprinted,
   retaining its place in the order of third reading
 
 AN  ACT  to amend the banking law, in relation to unregistered and unli-
   censed mortgage brokers
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Paragraph (e) of subdivision 5 of section 590 of the bank-
 ing 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 PERSON, PARTNERSHIP, ASSOCIATION, CORPO-
 RATION OR OTHER ENTITY WHO PROVIDES  NON-RESIDENTIAL  SUBORDINATE  LOANS
 SHALL  BE EXEMPT FROM THIS PARAGRAPH. A MORTGAGE BANKER, MORTGAGE BROKER
 OR EXEMPT ORGANIZATION SHALL PROMPTLY NOTIFY THE DEPARTMENT OF ANY  SUCH
 UNLICENSED OR UNREGISTERED OPERATIONS.
   §  2.  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
 or entity engages in activities encompassed by this article, he shall be
 liable  to any person or entity affected by such activities for a sum of
 money of not less than the amount of money paid to an affected person or
 entity in connection with such activities, nor more than four times such
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

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