NY State Senate Bill 2019-S5290

Archive: Last Bill Status - In Senate Committee Banks 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

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to banks
Apr 23, 2019	referred to banks

2019-S5290 (ACTIVE) - Details

See Assembly Version of this Bill:: A4565
Current Committee:: Senate Banks
Law Section:: Banking Law
Laws Affected:: Amd §595-a, Bank L
Versions Introduced in Other Legislative Sessions:: 2015-2016: A8112
2017-2018: A6393
2021-2022: S99, A5579
2023-2024: A1796

2019-S5290 (ACTIVE) - Summary

Relates to refinancing of an existing mortgage loan; provides for a separate disclosure which compares monthly payments under the previous mortgage with the combined monthly payments for the new mortgage loan, property tax and insurance.

2019-S5290 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S5290

SPONSOR: THOMAS
 
TITLE OF BILL:  An act to amend the banking law, in relation to refi-
nancing of an existing mortgage loan

 
PURPOSE:

To ensure that consumers are appropriately informed when refinancing a
mortgage and have the ability to compare the total monthly costs of the
previous loan with the total monthly costs of the new loan.

 
SUMMARY OF PROVISIONS:

Section 595-a(3) of the Banking Law is amended to require mortgage
brokers, mortgage bankers or exempt organizations to provide a special
disclosure for any mortgage refinancing where the mortgagor will no
longer be paying property tax or insurance premiums into an escrow
account. In those cases, the disclosure must compare the total monthly
payments under the previous loan with the combined monthly payments for
the new loan, real property taxes and insurance.

 
JUSTIFICATION:

Consumers may refinance a mortgage loan for numerous reasons. An impor-
tant consideration is the monthly cost of the new loan versus the month-
ly cost of the previous loan.

Unfortunately, in some cases, this comparison may be misleading or
invalid` because the homeowner does not realize or understand that the
new total does not include property tax or insurance payments, which may
have been included in the previous loan. There is concern that some
lenders or mortgage brokers may obscure this information, or may active-
ly mislead the homeowner in order to pressure them into refinance the
existing loan. As a result, the new loan may appear to be a better deal,
but in reality may be a worse deal.

This bill seeks to ensure that consumers are adequately notified if
their new loan will no longer include property tax or insurance
payments, and that they are given a clear comparison of the full monthly
costs under the previous loan and the full monthly costs under the new
loan. This will assist homeowners in making an informed decision.

 
LEGISLATIVE HISTORY:

2017-2018:A.6393(Wright): Died in Committee
2015-2016:A.8112(Robinson)/S.2919(Funke):Died in Committee
2013-2014:S.2867(Smith)Referredto BanksCommittee
2011-2012:S.3651(Smith):Referredto BanksCommittee
2009-2010:S.4875(Foley):Referredto BanksCommittee
2007-2008:S.5619(Farley:Referredto BanksCommittee

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
On the 180th day after it shall have become a law.

2019-S5290 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5290
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                              April 23, 2019
                                ___________
 
 Introduced  by  Sen.  THOMAS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Banks
 
 AN ACT to amend the banking law, in relation to refinancing of an exist-
   ing mortgage loan
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  Subdivision  3  of  section  595-a  of the banking law is
 amended by adding a new paragraph (e) to read as follows:
   (E) FOR ANY REFINANCING OF AN EXISTING MORTGAGE LOAN, WHERE THE  MORT-
 GAGOR  WILL  NO LONGER BE PAYING PROPERTY TAX OR INSURANCE PAYMENTS INTO
 AN ESCROW ACCOUNT, EACH MORTGAGE  BROKER,  MORTGAGE  BANKER  AND  EXEMPT
 ORGANIZATION  SHALL,  PRIOR  TO  CLOSING,  PROVIDE A SEPARATE DISCLOSURE
 WHICH COMPARES THE TOTAL MONTHLY PAYMENTS UNDER  THE  PREVIOUS  MORTGAGE
 WITH THE COMBINED MONTHLY PAYMENTS FOR THE NEW MORTGAGE LOAN, REAL PROP-
 ERTY  TAXES  AND  INSURANCE.  THE  BANKING  BOARD  MAY SPECIFY THE FORM,
 CONTENT AND TIMING OF SUCH DISCLOSURE.
   § 2. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.
 
 

 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00595-01-9

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Senate Bill S5290

Sponsored By

Archive: Last Bill Status - In Senate Committee Banks Committee

2019-S5290 (ACTIVE) - Details

2019-S5290 (ACTIVE) - Summary

2019-S5290 (ACTIVE) - Sponsor Memo

2019-S5290 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S5290

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Sponsored By

Kevin Thomas

Archive: Last Bill Status - In Senate Committee Banks Committee

2019-S5290 (ACTIVE) - Details

2019-S5290 (ACTIVE) - Summary

2019-S5290 (ACTIVE) - Sponsor Memo

2019-S5290 (ACTIVE) - Bill Text download pdf

Comments