Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|
---|---|
Jan 14, 2011 |
referred to judiciary |
Senate Bill S1899
2011-2012 Legislative Session
Sponsored By
(D) Senate District
Archive: Last Bill Status - In Senate Committee Judiciary Committee
- 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
Actions
2011-S1899 (ACTIVE) - Details
2011-S1899 (ACTIVE) - Summary
Provides that a mortgage investing institution that maintains a mortgage on any real property in the state of New York shall give ten days written notice prior to requiring payment of an increase in the amount of escrow if the dollar amount of such increase is more than five percent of the total monthly payment; provides that no service charge shall be imposed for the giving of such notice; defines that term "mortgage investing institutions" as any banking organization or other entity engaged in the business of offering mortgage financing to the public or investing in mortgages.
2011-S1899 (ACTIVE) - Sponsor Memo
BILL NUMBER:S1899 TITLE OF BILL: An act to amend the general obligations law, in relation to increases in mortgage escrow account requirements SUMMARY OF SPECIFIC PROVISIONS: Adds a new Section 5-603 to the General obligations Law providing that a mortgage investing institution that maintains a mortgage on any real property in the State of New York shall give ten days written notice prior to requiring payment of an increase in the amount of escrow if the amount is more than 5% of the total monthly payment. No service charge shall be imposed for the giving of such notice. The term "mortgage investing institutions" shall refer to any banking organization or other entity engaged in the business of offering mortgage financing to the public or investing in mortgages. JUSTIFICATION: Currently, a mortgagor can raise the monthly payments by any amount and not give any notice. This bill would allow a mortgagee to prepare for the increase. FISCAL IMPLICATIONS: None.
2011-S1899 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 1899 2011-2012 Regular Sessions I N S E N A T E January 14, 2011 ___________ Introduced by Sen. KRUGER -- read twice and ordered printed, and when printed to be committed to the Committee on Judiciary AN ACT to amend the general obligations law, in relation to increases in mortgage escrow account requirements THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The general obligations law is amended by adding a new section 5-603 to read as follows: S 5-603. INCREASES IN DEPOSITS IN ESCROW WITH MORTGAGE INVESTING INSTITUTIONS. ANY MORTGAGE INVESTING INSTITUTION THAT MAINTAINS AN ESCROW ACCOUNT PURSUANT TO ANY AGREEMENT EXECUTED IN CONNECTION WITH A MORTGAGE ON ANY REAL PROPERTY LOCATED IN THIS STATE SHALL GIVE TEN DAYS WRITTEN NOTICE PRIOR TO REQUIRING PAYMENT OF ANY INCREASE IN THE AMOUNT OF ESCROW IF THE DOLLAR AMOUNT OF SUCH INCREASE IS MORE THAN FIVE PERCENT OF THE DOLLAR AMOUNT OF THE TOTAL MONTHLY PAYMENT (WHICH INCLUDES PRINCIPAL, INTEREST, AND ALL ESCROW AMOUNTS) FOR THE MONTH PRIOR TO THE MONTH FOR WHICH THE INCREASE IS EFFECTIVE. NO SERVICE CHARGE SHALL BE IMPOSED FOR THE GIVING OF SUCH NOTICE. FOR THE PURPOSES OF THIS SECTION, "MORTGAGE INVESTING INSTITUTION" SHALL MEAN ANY BANKING ORGANIZATION, AS DEFINED IN SECTION TWO OF THE BANKING LAW, OR ANY OTHER ENTITY ENGAGED IN THE BUSINESS OF OFFERING MORTGAGE FINANCING TO THE PUBLIC OR INVESTING IN MORTGAGES. S 2. This act shall take effect on the ninetieth day after it shall have become a law. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD07237-01-1
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