S T A T E O F N E W Y O R K
________________________________________________________________________
4829
2025-2026 Regular Sessions
I N A S S E M B L Y
February 6, 2025
___________
Introduced by M. of A. O'PHARROW -- read once and referred to the
Committee on Banks
AN ACT to amend the banking law, in relation to penalties for certain
violations committed by mortgage bankers and mortgage brokers
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph (a) of subdivision 1 of section 595 of the bank-
ing law, as amended by chapter 291 of the laws of 2014, is amended to
read as follows:
(a) Through a course of conduct, the licensee or registrant has
violated any provisions of this article, OR ARTICLE FIFTEEN OF THE EXEC-
UTIVE LAW COMMITTED IN THEIR CAPACITY AS A MORTGAGE BANKER OR MORTGAGE
BROKER, or any rule or regulation promulgated by the superintendent of
financial services under and within the authority of this article or of
any other law, rule or regulation of this state or the federal govern-
ment;
§ 2. Paragraphs (g) and (h) of subdivision 1 of section 595-a of the
banking law, paragraph (g) as amended and paragraph (h) as added by
chapter 308 of the laws of 2006, are amended and a new paragraph (i) is
added to read as follows:
(g) Violation of section six-j of this chapter; [and]
(h) Making a mortgage loan, or indirectly or directly providing for
the making of a mortgage loan, to an equity purchaser, as defined in
section two hundred sixty-five-a of the real property law, if the mort-
gage banker, mortgage broker or exempt organization had knowledge that
the equity purchaser was not complying with the provisions of section
two hundred sixty-five-a of the real property law with respect to such
transaction[.]; AND
(I) VIOLATION OF ARTICLE FIFTEEN OF THE EXECUTIVE LAW COMMITTED IN
THEIR CAPACITY AS A MORTGAGE BANKER OR MORTGAGE BROKER.
§ 3. This act shall take effect immediately.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08808-01-5
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