S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2229
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 19, 2023
                                ___________
 
 Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the banking law, the executive  law  and  the  veterans'
   services  law, in relation to certain notices and services upon appli-
   cation for a mortgage guaranteed under the "Servicemen's  Readjustment
   Act  of 1944"; and providing for the repeal of certain provisions upon
   expiration thereof
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  6-p of the banking law, as added by a chapter of
 the laws of 2022 amending the banking law, the  executive  law  and  the
 veterans'  services  law  relating  to certain notices and services upon
 application for a mortgage guaranteed under the "Servicemen's  Readjust-
 ment  Act  of 1944", as proposed in legislative bills numbers S.  8670-A
 and A. 9493-A, is REPEALED and a new section 6-p is  added  to  read  as
 follows:
   §  6-P.  LOAN  COUNSELING FOR MORTGAGES GUARANTEED BY THE SERVICEMEN'S
 READJUSTMENT ACT OF 1944. EVERY MORTGAGE LENDING INSTITUTION  AND  MORT-
 GAGE  BANKER  WHICH  ORIGINATES  LOANS SECURED BY REAL PROPERTY USED FOR
 RESIDENTIAL PURPOSES LOCATED IN THIS STATE WHICH ARE  TO  BE  GUARANTEED
 UNDER THE SERVICEMEN'S READJUSTMENT ACT OF 1944 SHALL PROVIDE A SEPARATE
 DISCLOSURE  FORM  WITH EACH APPLICATION STATING THAT A VETERAN SEEKING A
 HOUSING LOAN UNDER CHAPTER 37 OF TITLE 38 OF THE UNITED STATES CODE  HAS
 BEEN  OFFERED  LOAN  COUNSELING  SERVICES. SUCH LOAN COUNSELING SERVICES
 SHALL BE PROVIDED BY THE DEPARTMENT OF VETERANS' SERVICES UNDER  SECTION
 TWENTY-NINE-A  OF  THE  VETERANS' SERVICES LAW UPON REQUEST OF AN APPLI-
 CANT.  THE DISCLOSURE FORM REQUIRED BY THIS SECTION SHALL BE  SIGNED  BY
 EACH  APPLICANT  AND  SHALL  INCLUDE INFORMATION DETAILING HOW TO ACCESS
 SUCH COUNSELING SERVICES.
   § 2. Section 354-f of the executive law, as added by a chapter of  the
 laws  of 2022 amending the banking law, the executive law and the veter-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04151-01-3
              

 S. 2229                             2
 
 ans' services law relating to certain notices and services upon applica-
 tion for a mortgage guaranteed under the "Servicemen's Readjustment  Act
 of  1944",  as  proposed  in legislative bills numbers S.  8670-A and A.
 9493-A, is amended to read as follows:
   §  354-f. Loan counseling for mortgages guaranteed by the Servicemen's
 Readjustment Act of 1944. Upon the request of any veteran, the  division
 shall  provide  counseling  and  assistance to applicants for a mortgage
 loan guaranteed by the Servicemen's Readjustment  Act  of  1944.    Such
 service  shall  be provided either directly or through a contract with a
 not-for-profit entity which  has  a  Commercial  and  Government  Entity
 (CAGE)  code  assigned  by  the  federal System for Award Management and
 which is not owned by, affiliated with or operated by a mortgage  compa-
 ny.  Counselors shall be [licensed in this state as either a real estate
 broker or a mortgage broker] CERTIFIED BY THE UNITED  STATES  DEPARTMENT
 OF  HOUSING AND URBAN DEVELOPMENT UNDER PART 214 OF TITLE 24 OF THE CODE
 OF FEDERAL REGULATIONS. Loan counseling and assistance shall  include  a
 review  of  the  terms and restrictions of the loan[, information deter-
 mined by the state director to be appropriate for a  veteran  seeking  a
 housing  loan  under  chapter 37 of title 38 of the United States Code,]
 and any other information which may be required under federal law,  rule
 or  regulation.  THE  DIVISION  MAY  PROMULGATE REGULATIONS NECESSARY TO
 PREVENT ANY POTENTIAL CONFLICTS OF INTEREST BETWEEN COUNSELORS AND MORT-
 GAGE COMPANIES TO ENSURE THAT ANY  COUNSELING  AND  ASSISTANCE  PROVIDED
 UNDER  THE PROVISIONS OF THIS SECTION SHALL BE MADE IN THE BEST INTEREST
 OF THE VETERAN SEEKING SUCH MORTGAGE LOAN.
   § 3. Section 29-a of the veterans' services law, as added by a chapter
 of the laws of 2022 amending the banking law, the executive law and  the
 veterans'  services  law  relating  to certain notices and services upon
 application for a mortgage guaranteed under the "Servicemen's  Readjust-
 ment  Act  of  1944", as proposed in legislative bills numbers S. 8670-A
 and A. 9493-A, is amended to read as follows:
   § 29-a. Loan counseling for mortgages guaranteed by  the  Servicemen's
 Readjustment  Act  of  1944. Upon the request of any veteran, the [divi-
 sion] DEPARTMENT shall provide counseling and assistance  to  applicants
 for  a  mortgage loan guaranteed by the Servicemen's Readjustment Act of
 1944. Such service shall  be  provided  either  directly  or  through  a
 contract with a not-for-profit entity which has a Commercial and Govern-
 ment Entity (CAGE) code assigned by the federal System for Award Manage-
 ment  and  which is not owned by, affiliated with or operated by a mort-
 gage company. Counselors shall be [licensed in this state  as  either  a
 real  estate broker or a mortgage broker] CERTIFIED BY THE UNITED STATES
 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT UNDER PART 214 OF  TITLE  24
 OF THE CODE OF FEDERAL REGULATIONS. Loan counseling and assistance shall
 include a review of the terms and restrictions of the loan[, information
 determined by the state director to be appropriate for a veteran seeking
 a  housing loan under chapter 37 of title 38 of the United States Code,]
 and any other information which may be required under federal law,  rule
 or  regulation.  THE  DEPARTMENT MAY PROMULGATE REGULATIONS NECESSARY TO
 PREVENT ANY POTENTIAL CONFLICTS OF INTEREST BETWEEN COUNSELORS AND MORT-
 GAGE COMPANIES TO ENSURE THAT ANY  COUNSELING  AND  ASSISTANCE  PROVIDED
 UNDER  THE PROVISIONS OF THIS SECTION SHALL BE MADE IN THE BEST INTEREST
 OF THE VETERAN SEEKING SUCH MORTGAGE LOAN.
   § 4. This act shall take effect on the  same  date  and  in  the  same
 manner  as  a  chapter of the laws of 2022 amending the banking law, the
 executive law and the veterans' services law relating to certain notices
 and services upon  application  for  a  mortgage  guaranteed  under  the
 S. 2229                             3
 
 "Servicemen's  Readjustment  Act  of  1944",  as proposed in legislative
 bills numbers S. 8670-A and  A.  9493-A,  takes  effect;  provided  that
 section  one  of  this act shall take effect on the same date and in the
 same  manner  as section 2 of part PP of chapter 56 of the laws of 2022,
 takes effect; and provided, further that the amendments to section 354-f
 of the executive law made by section two of this act  shall  not  affect
 the repeal of such section and shall expire and be deemed repealed ther-
 ewith.