NY State Senate Bill 2021-S99

Senate Bill S99

2021-2022 Legislative Session

Relates to refinancing of an existing mortgage loan

download bill text pdf

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

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to banks
Jan 06, 2021	referred to banks

2021-S99 (ACTIVE) - Details

See Assembly Version of this Bill:: A5579
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
2019-2020: S5290, A4565
2023-2024: A1796

2021-S99 (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.

2021-S99 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S99

SPONSOR: THOMAS
 
TITLE OF BILL:

An act to amend the banking law, in relation to refinancing of an exist-
ing 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 1 of the bill amends subdivision 3 of section 595-a of the bank-
ing law and adds a new paragraph (e). Paragraph (e) requires 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.

Section 2 provides the effective date.

 
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 compar-
ison may be misleading or invalid because the homeowner does not realize
or understand that the new total does not include property tax or insur-
ance payments, which may have been in the previous loan. There is
concern that some lenders or mortgage brokers may obscure this informa-
tion or may actively mislead the homeowner to pressure them into refi-
nancing 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 will assist homeowners in making an informed decision. This
bill seeks to ensure that consumers are adequately notified about wheth-
er their new loan includes property tax or insurance payments and that
they are given a clear comparison of the full monthly costs under the
previous loan and the new loan.

 
LEGISLATIVE HISTORY:

2019-20: S.5290 (Thomas) / A.4565 (Wright) - Referred to Banks.

2017-18: A.6393 (Wright) - Referred to Banks.

2015-16: S.2919 (Funke)/ A.8112 (Robinson) - Referred to Banks.

2013-14: S.2867 (Smith)- Referred to Banks.

2011-12: S.3651 (Smith)- Referred to Banks.

2009-10: S.4875 (Foley)- Referred to Banks.
2007-08: S.5619 (Farley)- Referred to Banks.

 
FISCAL IMPLICATIONS:

None.

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

2021-S99 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    99
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 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 SUPERINTENDENT OF FINANCIAL SERVICES 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.
                                                            LBD02323-01-1

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.