BILL NUMBER:  S2073

 TITLE OF BILL :
An act to amend the tax law, in relation to exempting from the tax on
mortgages, any mortgage which replaces an adjustable rate mortgage
which initially had a rate of interest below the prime rate


 PURPOSE OR GENERAL IDEA OF BILL :
Waives mortgage tax on a refinanced mortgage that replaces an
adjustable rate mortgage initially offered at a sub-prime rate, which
would allow more homeowners to not lose their homes.

 SUMMARY OF SPECIFIC PROVISIONS :
Section 1 - subdivision 2 of section 250 of the tax law is amended to
add new paragraph C to redefine mortgage for the purposes of tax
collection to not include mortgages refinanced by homeowners who fell
victim to sub-prime mortgage crisis.

 JUSTIFICATION :
Thousands of Americans are faced with the distressful situation of
making their mortgage payments or putting dinner on the table. The
sub-prime mortgage crisis has driven thousands of Americans out of
their home and has left many families displaced.  This has an enormous
effect on the lives of children who no longer have a place to sleep,
eat or do their homework. The constant pressure that this crisis has
              

put on parents has led to an increase in divorce which causes immense
stress that is ultimately relayed to their children.

The sub-prime lending crisis in the united States is depriving
thousands of Americans especially New Yorkers of achieving their dream
of owning their home. U.S. foreclosure filings jumped 57 percent or 1
in every 538 households and bank repossessions more than doubled in
March from a year earlier as adjustable mortgages increased and more
owners lost their homes to lenders.

The latest report released on April 29, 2008 by The New York state
Banking Department and RealtyTrac for the first quarter of 2008
clearly indicates that this is a statewide issue affecting all
counties and not just New York city. various counties in the state
endured drastic increases compared to the first quarter of 2007.
Albany county suffered an astounding 401 % increase compared to the
first quarter of 2007 and Staten Island saw a change of 110%. In the
first quarter of 2008 there were 14,002 foreclosure fillings in New
York state a 48% increase from the same quarter a year ago.

This lending crisis has been fed by adjustable-rate mortgages and
other shady lending practices that often offer low initial teaser
rates that then skyrocket after a period of time. The increase in
rates which occur unannounced raises the amount homeowners pay each
month.

Struggling homeowners can save their homes by refinancing with a fixed
rate mortgage resulting in lower monthly payments. However,
refinancing still causes a burden on homeowners due to the large tax
imposed on refinanced mortgages which amount to thousands of dollars.
Facing limited financial resources during this crisis, homeowners
entangled in subprime fiasco should be given this one time opportunity
that will serve as a tremendous assistance to them and their families.

This legislation will eliminate the mortgage tax for people who were
victims of this sub-prime mess and refinanced from an adjustable rate
to a fixed rate. This would give people an extra incentive to
refinance and would save homeowners a great amount of money. The money
saved from this tax which would have gone to the state can instead be

used for something much more beneficial such as putting dinner on the
table.

 PRIOR LEGISLATIVE HISTORY :
New Legislation.

 FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS :
Not applicable.

 EFFECTIVE DATE :
This act shall take effect immediately.