NY State Senate Bill S1144A

Current Bill Status Via A1153 - Passed Senate & Assembly

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

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Actions

view actions (15)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 10, 2023	returned to assembly passed senate 3rd reading cal.83 substituted for s1144a
May 10, 2023	substituted by a1153a
Mar 16, 2023	amended on third reading (t) 1144a
Mar 16, 2023	vote reconsidered - restored to third reading returned to senate recalled from assembly
Jan 18, 2023	referred to banks delivered to assembly passed senate
Jan 17, 2023	ordered to third reading cal.83 reported and committed to rules
Jan 10, 2023	referred to banks

Votes

view votes

May 10, 2023 - floor Vote

A1153A

floor

Aye

Nay

Absent

Excused

Abstained

Jan 18, 2023 - floor Vote

S1144

floor

Aye

Nay

Absent

Excused

Abstained

Jan 17, 2023 - Banks committee Vote

S1144

committee

Aye

Nay

Aye with Reservations

Absent

Excused

Abstained

Jan 17, 2023 - Rules committee Vote

S1144

committee

Aye

Nay

Aye with Reservations

Absent

Excused

Abstained

Bill Amendments

Original

A (Active)

Original

A (Active)

Co-Sponsors

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

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.

S1144 - Sponsor Memo

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

 S. 1144                             2
 
 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
 sum; PROVIDED HOWEVER THAT WHERE A NON-EXEMPT UNLICENSED OR UNREGISTERED
 PERSON  HAS  CONTINUED  TO  ENGAGE IN SUCH UNAUTHORIZED ACTIVITIES AFTER
 RECEIVING A CEASE AND DESIST NOTICE FROM THE SUPERINTENDENT, THE MAXIMUM
 AMOUNT OF LIABILITY SHALL BE UP TO TEN TIMES SUCH SUM. Such sum  may  be
 sued  for  and recovered by any person or entity for his use and benefit
 in any court of competent jurisdiction.
   § 4.  The article heading of article 187 of the penal law, as added by
 chapter 472 of the laws of 2008, is amended to read as follows:
   [RESIDENTIAL] MORTGAGE FRAUD
   § 5. Section 187.00 of the penal law, as amended by chapter 507 of the
 laws of 2009, is amended to read as follows:
 § 187.00 Definitions.
   As used in this article:
   1. "Person" means any individual or entity.
   2. ["Residential mortgage] "MORTGAGE loan" means a loan  or  agreement
 to  extend credit, including the renewal, refinancing or modification of
 any such loan, made to a person OR AN ENTITY, which  loan  is  primarily
 secured  by  either  a  mortgage,  deed of trust, or other lien upon any
 interest in [residential] real property or any certificate of  stock  or
 other  evidence  of ownership in, and a proprietary lease from, a corpo-
 ration or partnership formed for the purpose of cooperative ownership of
 [residential] real property.
   3. ["Residential real property" means  real  property  improved  by  a
 one-to-four family dwelling, or a residential unit in a building includ-
 ing units owned as condominiums or on a cooperative basis, used or occu-
 pied,  or intended to be used or occupied, wholly or partly, as the home
 or residence of one or more persons, but shall not refer  to  unimproved
 real property upon which such dwellings are to be constructed.
   4.  "Residential  mortgage]  "MORTGAGE fraud" is committed by a person
 who, knowingly and with  intent  to  defraud,  presents,  causes  to  be
 presented,  or prepares with knowledge or belief that it will be used in
 soliciting an applicant for, applying for, underwriting or closing ON  a
 [residential] mortgage loan, or filing with a county clerk of any county
 in  the  state  arising out of and related to the closing of a [residen-
 tial] mortgage loan, any written statement which:
   (a) contains materially false information concerning any fact material
 thereto; or
   (b) conceals, for the purpose of  misleading,  information  concerning
 any fact material thereto.
   §  6.  Section 187.05 of the penal law, as added by chapter 472 of the
 laws of 2008, is amended to read as follows:
 § 187.05 [Residential mortgage] MORTGAGE fraud in the fifth degree.
   A person is guilty of [residential] mortgage fraud in the fifth degree
 when he or she commits [residential] mortgage fraud.
   [Residential mortgage] MORTGAGE fraud in the fifth degree is a class A
 misdemeanor.
   § 7. Section 187.10 of the penal law, as added by chapter 472  of  the
 laws of 2008, is amended to read as follows:
 § 187.10 [Residential mortgage] MORTGAGE fraud in the fourth degree.
   A  person  is  guilty  of  [residential]  mortgage fraud in the fourth
 degree when he or she commits [residential] mortgage fraud  and  thereby
 S. 1144                             3
 
 receives  proceeds  or any other funds in the aggregate in excess of one
 thousand dollars.
   [Residential  mortgage] MORTGAGE fraud in the fourth degree is a class
 E felony.
   § 8. Section 187.15 of the penal law, as added by chapter 472  of  the
 laws of 2008, is amended to read as follows:
 § 187.15 [Residential mortgage] MORTGAGE fraud in the third degree.
   A person is guilty of [residential] mortgage fraud in the third degree
 when he or she commits [residential] mortgage fraud and thereby receives
 proceeds or any other funds in the aggregate in excess of three thousand
 dollars.
   [Residential mortgage] MORTGAGE fraud in the third degree is a class D
 felony.
   §  9.  Section 187.20 of the penal law, as added by chapter 472 of the
 laws of 2008, is amended to read as follows:
 § 187.20 [Residential mortgage] MORTGAGE fraud in the second degree.
   A person is guilty of  [residential]  mortgage  fraud  in  the  second
 degree  when  he or she commits [residential] mortgage fraud and thereby
 receives proceeds or any other funds in the aggregate in excess of fifty
 thousand dollars.
   [Residential mortgage] MORTGAGE fraud in the second degree is a  class
 C felony.
   §  10. Section 187.25 of the penal law, as added by chapter 472 of the
 laws of 2008, is amended to read as follows:
 § 187.25 [Residential mortgage] MORTGAGE fraud in the first degree.
   A person is guilty of [residential] mortgage fraud in the first degree
 when he or she commits [residential] mortgage fraud and thereby receives
 proceeds or any other funds in the aggregate in excess  of  one  million
 dollars.
   [Residential mortgage] MORTGAGE fraud in the first degree is a class B
 felony.
   §  11.  This act shall take effect on the thirtieth day after it shall
 have become a law.

Co-Sponsors

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

S1144A (ACTIVE) - Summary

S1144A (ACTIVE) - Sponsor Memo

 
BILL NUMBER: S1144A

SPONSOR: SANDERS
 
TITLE OF BILL:

An act to amend the banking law, in relation to unregistered and unli-
censed mortgage brokers

 
PURPOSE OR GENERAL IDEA OF BILL:

Prohibits mortgage lenders from conducting business with any individual
or entity which it knows or should have known is acting as a mortgage
banker or a mortgage broker without being licensed or registered.

 
SUMMARY OF PROVISIONS:

Section one: Prohibits mortgage bankers, mortgage brokers or exempt
organizations, who are not registered or licensed by DFS, from perform-
ing or executing mortgages. Entities who provide mezzanine mortgages
would be exempt from this section.

Section two: Provides that if a non-exempt unlicensed or unregistered

person or entity continues to engage in unauthorized activities after a
cease-and desist notice from DFS, then they are liable for the actual
damages equivalent to the amount of money paid to an affected person.

Section three is the effective date.

 
JUSTIFICATION:

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 mortgage bank-
er or a mortgage broker without being licensed or registered as required
by this article. A mortgage banker, mortgage broker or exempt organiza-
tion shall promptly notify the department of any such unlicensed or
unregistered operations.

 
PRIOR LEGISLATIVE HISTORY:

2022 PASSED SENATE

2022 referred to banks

2021 PASSED SENATE

2021 referred to banks

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

 
EFFECTIVE DATE:
This act shall take effect on the thirtieth day after it shall have
become law.

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.

                                                            LBD03777-03-3
 S. 1144--A                          2
 
 sum; PROVIDED HOWEVER THAT WHERE A NON-EXEMPT UNLICENSED OR UNREGISTERED
 PERSON HAS CONTINUED TO ENGAGE IN  SUCH  UNAUTHORIZED  ACTIVITIES  AFTER
 RECEIVING A CEASE AND DESIST NOTICE FROM THE SUPERINTENDENT, THE MAXIMUM
 AMOUNT  OF  LIABILITY  SHALL BE UP TO THE AMOUNT OF ACTUAL DAMAGES. Such
 sum may be sued for and recovered by any person or entity  for  his  use
 and benefit in any court of competent jurisdiction.
   §  3.  This  act shall take effect on the thirtieth day after it shall
 have become a law.

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The New York State Senate

senate Bill S1144A

Sponsored By

Current Bill Status Via A1153 - Passed Senate & Assembly

Your Voice

Actions

Votes

May 10, 2023 - floor Vote

Floor Vote: May 10, 2023

Jan 18, 2023 - floor Vote

Floor Vote: Jan 18, 2023

Jan 17, 2023 - Banks committee Vote

Committee Vote: Jan 17, 2023

Jan 17, 2023 - Rules committee Vote

Committee Vote: Jan 17, 2023

Bill Amendments

Co-Sponsors

S1144 - Details

S1144 - Summary

S1144 - Sponsor Memo

S1144 - Bill Text download pdf

Co-Sponsors

S1144A (ACTIVE) - Details

S1144A (ACTIVE) - Summary

S1144A (ACTIVE) - Sponsor Memo

S1144A (ACTIVE) - Bill Text download pdf

Comments

senate Bill S1144A

Share this bill

Sponsored By

James Sanders Jr.

Current Bill Status Via A1153 - Passed Senate & Assembly

Your Voice

Actions

Votes

May 10, 2023 - floor Vote

Floor Vote: May 10, 2023

Jan 18, 2023 - floor Vote

Floor Vote: Jan 18, 2023

Jan 17, 2023 - Banks committee Vote

Committee Vote: Jan 17, 2023

Jan 17, 2023 - Rules committee Vote

Committee Vote: Jan 17, 2023

Bill Amendments

Co-Sponsors

John W. Mannion

S1144 - Details

S1144 - Summary

S1144 - Sponsor Memo

S1144 - Bill Text download pdf

Co-Sponsors

John W. Mannion

S1144A (ACTIVE) - Details

S1144A (ACTIVE) - Summary

S1144A (ACTIVE) - Sponsor Memo

S1144A (ACTIVE) - Bill Text download pdf

Comments