Assembly Bill A4491

2015-2016 Legislative Session

Enacts the Home Equity Fraud Act to control improper activities by home improvement contractors and finance companies

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Sponsored By

Archive: Last Bill Status - Stricken


  • 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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2015-A4491 (ACTIVE) - Details

See Senate Version of this Bill:
S186
Law Section:
Banking Law
Laws Affected:
Amd §§595-a, 347 & 592-a, Bank L; add §254-e, RP L; add §§1308 & 1309, RPAP L; amd §771, add §771-b, Gen Bus L; add §5-336, Gen Ob L
Versions Introduced in Other Legislative Sessions:
2009-2010: A3386
2011-2012: A2378, S7271
2013-2014: A2852, S19
2017-2018: S4957, S7232
2019-2020: S5065
2021-2022: S5646
2023-2024: S7209

2015-A4491 (ACTIVE) - Summary

Enacts the "Home Equity Fraud Act" to control improper activities by home improvement contractors and finance companies; prohibits mortgage brokers or agents from acting as home improvement contractors; provides additional protections for mortgagors and home owners.

2015-A4491 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4491

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            February 3, 2015
                               ___________

Introduced  by M. of A. CLARK, HOOPER, ORTIZ -- Multi-Sponsored by -- M.
  of A. BRENNAN, COLTON, COOK, GANTT, MAGEE, PERRY, SCARBOROUGH,  WRIGHT
  -- read once and referred to the Committee on Banks

AN ACT to amend the banking law, the real property law, the real proper-
  ty  actions  and  proceedings  law,  the  general business law and the
  general obligations law, in relation  to  enacting  the  "Home  Equity
  Fraud Act"

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Short title. This act shall be known and may  be  cited  as
the "Home Equity Fraud Act".
  S  2.  Legislative  findings.  The  legislature hereby finds that many
senior citizens and minority homeowners in New York have  been  targeted
by  unethical home improvement contractors, mortgage companies, mortgage
brokers and finance companies who induce these homeowners into  entering
into high cost high interest rate mortgage agreements which the homeown-
er  is often unable to afford with the intent of foreclosing on the home
and stripping the equity.
  The legislature further finds that in  order  to  entice  people  into
entering  into these agreements they are promised refinancing of primary
mortgages, consolidation of loans and outstanding bills  and  are  given
cash  but often are not told or do not understand that they are securing
the loan with a mortgage lien on their home which will lead to  foreclo-
sure  in  the  event  of  default. Often these loans are documented with
false and misleading documentation provided by brokers which could easi-
ly be determined to be false if checked by the lender. Despite  prohibi-
tions  contained  in federal law many of these loans are based on equity
in the home and not on the borrower's ability  to  pay.  Since  many  of
these  homeowners  live  on  a fixed income, they are unable to make the
required payments and end up losing their homes. This  practice  appears

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00063-01-5

              

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