NY State Senate Bill 2023-S2229

Senate Bill S2229

Signed By Governor

2023-2024 Legislative Session

Relates to loan counseling services for a mortgage guaranteed under the "Servicemen's Readjustment Act of 1944"

download bill text pdf

Current Bill Status - Signed by Governor

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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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 03, 2023	signed chap.102 delivered to governor
Feb 15, 2023	returned to senate passed assembly ordered to third reading rules cal.91 substituted for a633
Feb 07, 2023	referred to banks delivered to assembly passed senate
Jan 23, 2023	ordered to third reading cal.166
Jan 19, 2023	referred to rules

Votes

- Feb 7, 2023 - Floor Vote
  S2229
  
  61
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  2
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Feb 7, 2023
      
      aye (61)
      
      Addabbo Jr.
      
      Ashby
      
      Bailey
      
      Borrello
      
      Breslin
      
      Brisport
      
      Canzoneri-Fitzpatrick
      
      Chu
      
      Cleare
      
      Comrie
      
      Cooney
      
      Felder
      
      Fernandez
      
      Gallivan
      
      Gianaris
      
      Gonzalez
      
      Gounardes
      
      Griffo
      
      Harckham
      
      Helming
      
      Hinchey
      
      Hoylman-Sigal
      
      Jackson
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Liu
      
      Mannion
      
      Martinez
      
      Martins
      
      Mattera
      
      May
      
      Mayer
      
      Murray
      
      Myrie
      
      O'Mara
      
      Oberacker
      
      Ortt
      
      Palumbo
      
      Parker
      
      Persaud
      
      Ramos
      
      Rhoads
      
      Rivera
      
      Rolison
      
      Ryan
      
      Sanders Jr.
      
      Scarcella-Spanton
      
      Sepúlveda
      
      Serrano
      
      Skoufis
      
      Stavisky
      
      Stec
      
      Stewart-Cousins
      
      Tedisco
      
      Thomas
      
      Walczyk
      
      Webb
      
      Weber
      
      Weik
      
      excused (2)
      
      Brouk
      
      Salazar
  Jan 23, 2023 - Rules Committee Vote
  S2229
  
  21
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jan 23, 2023
      
      aye (21)
      
      Addabbo Jr.
      
      Bailey
      
      Breslin
      
      Comrie
      
      Fernandez
      
      Gallivan
      
      Gianaris
      
      Griffo
      
      Helming
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Liu
      
      Mayer
      
      O'Mara
      
      Ortt
      
      Parker
      
      Sepúlveda
      
      Stec
      
      Stewart-Cousins
      
      Thomas

2023-S2229 (ACTIVE) - Details

See Assembly Version of this Bill:: A633
Law Section:: Banking Law
Laws Affected:: Rpld & add §6-p, Bank L; amd §354-f, Exec L; amd §29-a, Veterans' Services L (as proposed in S.8670-A & A.9493-A)

2023-S2229 (ACTIVE) - Summary

Provides that a veteran seeking a housing loan under chapter 37 of title 38 of the United States Code be offered loan counseling services by a counselor certified by the United States department of housing and urban development under Part 214 of Title 24 of the Code of Federal Regulations prior to the processing of such application by a banking institution or mortgage lender and that the department of veterans' services shall promulgate regulations to ensure that no conflicts of interest exist between counselors and mortgage companies.

2023-S2229 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S2229

SPONSOR: SANDERS
 
TITLE OF BILL:

An act to amend the banking law, the executive law and the veterans'
services law, in relation to certain notices and services upon applica-
tion for a mortgage guaranteed under the "Servicemen's Readjustment Act
of 1944"; and providing for the repeal of certain provisions upon expi-
ration thereof

 
PURPOSE:

The purpose of this legislation is to make several clarifying amendments
to Chapter 698 of the Laws of 2022.

 
SUMMARY OF PROVISIONS:

Section 1. Amends the Banking Law by adding a new section 6-p to provide
notice of the availability of loan counseling for mortgages guaranteed
by the Servicemen's Readjustment Act of 1944 at the time of applica-
tions.

Section 2. Amends the Executive Law by modifying the original chapter to
eliminate the requirement that counsellors be licensed real estate or
mortgage brokers, and replaces that with a requirement that counsellors
be certified HUD home counsellors. It also eliminates a mandate for the
Department of Veterans' Services (DVS), and empowers DVS to promulgate
regulations to prevent potential conflicts of interest and ensure that
counsellors are acting in the veteran's best interest.

Section 3. Conforms the Veterans' Services Law to match the Executive
Law language, reflecting the transition from the Division of Veterans'
Services to the Department of Veterans' Services.

 
JUSTIFICATION:

When applying for Veterans Affairs (VA) home loans Veterans are often
targeted by unscrupulous mortgage brokers and loan companies. This
legislation will provide that prospective homebuyers are offered accu-
rate and educational information to ensure that they obtain financing
that is fair, honest and tailored to their individual needs.

 
FISCAL IMPLICATIONS:

Minimal.

 
EFFECTIVE DATE:
In the same manner as Chapter 698 of the Laws of 2022.

2023-S2229 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2229
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 19, 2023
                                ___________
 
 Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the banking law, the executive  law  and  the  veterans'
   services  law, in relation to certain notices and services upon appli-
   cation for a mortgage guaranteed under the "Servicemen's  Readjustment
   Act  of 1944"; and providing for the repeal of certain provisions upon
   expiration thereof
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  6-p of the banking law, as added by a chapter of
 the laws of 2022 amending the banking law, the  executive  law  and  the
 veterans'  services  law  relating  to certain notices and services upon
 application for a mortgage guaranteed under the "Servicemen's  Readjust-
 ment  Act  of 1944", as proposed in legislative bills numbers S.  8670-A
 and A. 9493-A, is REPEALED and a new section 6-p is  added  to  read  as
 follows:
   §  6-P.  LOAN  COUNSELING FOR MORTGAGES GUARANTEED BY THE SERVICEMEN'S
 READJUSTMENT ACT OF 1944. EVERY MORTGAGE LENDING INSTITUTION  AND  MORT-
 GAGE  BANKER  WHICH  ORIGINATES  LOANS SECURED BY REAL PROPERTY USED FOR
 RESIDENTIAL PURPOSES LOCATED IN THIS STATE WHICH ARE  TO  BE  GUARANTEED
 UNDER THE SERVICEMEN'S READJUSTMENT ACT OF 1944 SHALL PROVIDE A SEPARATE
 DISCLOSURE  FORM  WITH EACH APPLICATION STATING THAT A VETERAN SEEKING A
 HOUSING LOAN UNDER CHAPTER 37 OF TITLE 38 OF THE UNITED STATES CODE  HAS
 BEEN  OFFERED  LOAN  COUNSELING  SERVICES. SUCH LOAN COUNSELING SERVICES
 SHALL BE PROVIDED BY THE DEPARTMENT OF VETERANS' SERVICES UNDER  SECTION
 TWENTY-NINE-A  OF  THE  VETERANS' SERVICES LAW UPON REQUEST OF AN APPLI-
 CANT.  THE DISCLOSURE FORM REQUIRED BY THIS SECTION SHALL BE  SIGNED  BY
 EACH  APPLICANT  AND  SHALL  INCLUDE INFORMATION DETAILING HOW TO ACCESS
 SUCH COUNSELING SERVICES.
   § 2. Section 354-f of the executive law, as added by a chapter of  the
 laws  of 2022 amending the banking law, the executive law and the veter-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04151-01-3

 S. 2229                             2
 
 ans' services law relating to certain notices and services upon applica-
 tion for a mortgage guaranteed under the "Servicemen's Readjustment  Act
 of  1944",  as  proposed  in legislative bills numbers S.  8670-A and A.
 9493-A, is amended to read as follows:
   §  354-f. Loan counseling for mortgages guaranteed by the Servicemen's
 Readjustment Act of 1944. Upon the request of any veteran, the  division
 shall  provide  counseling  and  assistance to applicants for a mortgage
 loan guaranteed by the Servicemen's Readjustment  Act  of  1944.    Such
 service  shall  be provided either directly or through a contract with a
 not-for-profit entity which  has  a  Commercial  and  Government  Entity
 (CAGE)  code  assigned  by  the  federal System for Award Management and
 which is not owned by, affiliated with or operated by a mortgage  compa-
 ny.  Counselors shall be [licensed in this state as either a real estate
 broker or a mortgage broker] CERTIFIED BY THE UNITED  STATES  DEPARTMENT
 OF  HOUSING AND URBAN DEVELOPMENT UNDER PART 214 OF TITLE 24 OF THE CODE
 OF FEDERAL REGULATIONS. Loan counseling and assistance shall  include  a
 review  of  the  terms and restrictions of the loan[, information deter-
 mined by the state director to be appropriate for a  veteran  seeking  a
 housing  loan  under  chapter 37 of title 38 of the United States Code,]
 and any other information which may be required under federal law,  rule
 or  regulation.  THE  DIVISION  MAY  PROMULGATE REGULATIONS NECESSARY TO
 PREVENT ANY POTENTIAL CONFLICTS OF INTEREST BETWEEN COUNSELORS AND MORT-
 GAGE COMPANIES TO ENSURE THAT ANY  COUNSELING  AND  ASSISTANCE  PROVIDED
 UNDER  THE PROVISIONS OF THIS SECTION SHALL BE MADE IN THE BEST INTEREST
 OF THE VETERAN SEEKING SUCH MORTGAGE LOAN.
   § 3. Section 29-a of the veterans' services law, as added by a chapter
 of the laws of 2022 amending the banking law, the executive law and  the
 veterans'  services  law  relating  to certain notices and services upon
 application for a mortgage guaranteed under the "Servicemen's  Readjust-
 ment  Act  of  1944", as proposed in legislative bills numbers S. 8670-A
 and A. 9493-A, is amended to read as follows:
   § 29-a. Loan counseling for mortgages guaranteed by  the  Servicemen's
 Readjustment  Act  of  1944. Upon the request of any veteran, the [divi-
 sion] DEPARTMENT shall provide counseling and assistance  to  applicants
 for  a  mortgage loan guaranteed by the Servicemen's Readjustment Act of
 1944. Such service shall  be  provided  either  directly  or  through  a
 contract with a not-for-profit entity which has a Commercial and Govern-
 ment Entity (CAGE) code assigned by the federal System for Award Manage-
 ment  and  which is not owned by, affiliated with or operated by a mort-
 gage company. Counselors shall be [licensed in this state  as  either  a
 real  estate broker or a mortgage broker] CERTIFIED BY THE UNITED STATES
 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT UNDER PART 214 OF  TITLE  24
 OF THE CODE OF FEDERAL REGULATIONS. Loan counseling and assistance shall
 include a review of the terms and restrictions of the loan[, information
 determined by the state director to be appropriate for a veteran seeking
 a  housing loan under chapter 37 of title 38 of the United States Code,]
 and any other information which may be required under federal law,  rule
 or  regulation.  THE  DEPARTMENT MAY PROMULGATE REGULATIONS NECESSARY TO
 PREVENT ANY POTENTIAL CONFLICTS OF INTEREST BETWEEN COUNSELORS AND MORT-
 GAGE COMPANIES TO ENSURE THAT ANY  COUNSELING  AND  ASSISTANCE  PROVIDED
 UNDER  THE PROVISIONS OF THIS SECTION SHALL BE MADE IN THE BEST INTEREST
 OF THE VETERAN SEEKING SUCH MORTGAGE LOAN.
   § 4. This act shall take effect on the  same  date  and  in  the  same
 manner  as  a  chapter of the laws of 2022 amending the banking law, the
 executive law and the veterans' services law relating to certain notices
 and services upon  application  for  a  mortgage  guaranteed  under  the
 S. 2229                             3
 
 "Servicemen's  Readjustment  Act  of  1944",  as proposed in legislative
 bills numbers S. 8670-A and  A.  9493-A,  takes  effect;  provided  that
 section  one  of  this act shall take effect on the same date and in the
 same  manner  as section 2 of part PP of chapter 56 of the laws of 2022,
 takes effect; and provided, further that the amendments to section 354-f
 of the executive law made by section two of this act  shall  not  affect
 the repeal of such section and shall expire and be deemed repealed ther-
 ewith.

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