Bill S7146-2013

Amends chapter 208 of the laws of 2010 and extends the provisions of chapter 208 of the laws of 2010 amending the public authorities law relating to the powers of the state of New York mortgage agency

Relates to the powers of the state of NY mortgage agency and extends the provisions of chapter 208 of the laws of 2010 amending the public authorities law relating to the powers of the state of New York mortgage agency.

Details

Actions

  • Jun 17, 2014: SUBSTITUTED BY A9736
  • May 21, 2014: ADVANCED TO THIRD READING
  • May 20, 2014: 2ND REPORT CAL.
  • May 19, 2014: 1ST REPORT CAL.780
  • Apr 30, 2014: REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT

Meetings

Calendars

Votes

VOTE: COMMITTEE VOTE: - Housing, Construction and Community Development - May 19, 2014
Ayes (7): Young, Bonacic, Gallivan, Nozzolio, Avella, Espaillat, Krueger
Excused (2): Boyle, Diaz

Memo

BILL NUMBER:S7146

TITLE OF BILL: An act to amend the public authorities law, in relation to government sponsored enterprises; and to amend chapter 208 of the laws of 2010 amending the public authorities law relating to the powers of the state of New York mortgage agency, in relation to extending the provisions thereof

Purpose of the Bill:

This bill would extend to July 23, 2015 legislation defining government sponsored enterprises ("GSE") in connection with the second lien program of the State of New York Mortgage Agency ("SONYMA"). The bill also amends the definition of GSE to include differently chartered entities created by Congress to replace the current GSEs in assuming the purposes currently served by the existing GSEs.

Summary of Provisions:

Section 1 of the bill would amend the definition of GSE.

Section 2 of the bill would extend until July 23, 2015, the present sunset date of December 31, 2014 with regard to the definition of government sponsored enterprises.

Section 3 of the bill provides for an immediate effective date.

Existing Law:

SONYMA is authorized through December 31, 2014 to purchase second mortgage loans made simultaneously and with respect to the same secured property as a first or senior mortgage that is purchased by a GSE.

GSEs are defined as privately owned, publicly chartered entities created by Congress to encourage lending and reduce costs primarily in the housing sector of the economy.

Prior Legislative History:

See Chapter 327 of the Laws of 2012, Chapter 208 of the Laws of 2010 and Chapter 432 of the Laws of 2009.

Statement in Support:

In 2010 SONYMA was authorized to purchase and insure second mortgages in the following limited circumstance: where the second mortgage is made simultaneously and with respect to the same secured property as a first or senior mortgage that is purchased by a GSE. In 2012, SONYMA was authorized to originate loans secured by mortgages secured by a second lien in cases where the second lien: (i) secures a mortgage loan purchased by SONYMA, and (ii) is made at the same time as a first lien securing a mortgage loan purchased by SONYMA pursuant to its programs or by a GSE.

In order for this power to continue, the definition of GSEs, which currently sunsets in December 2014, must be extended.

The definition also needs to be revised, since Congress is currently considering legislation that would replace the current GSEs with a new entity created by the federal government that would assume a number of the purposes currently served by GSEs, but with different statutory frameworks. If this legislation passes, the current GSE definition would no longer cover the new, proposed entity.

In order to continue the applicability of the GSE vehicle, and permit SONYMA to continue its programs uninterrupted, the bill would amend the definition to cover any such successor entities, as long as those entities are still charged with encouraging lending and reducing costs in the housing sector.

Budget Implications:

None.

Local Impact:

None.

Effective Date:

This bill would take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 7146 IN SENATE April 30, 2014 ___________
Introduced by Sen. YOUNG -- (at request of the New York State Homes and Community Renewal) -- read twice and ordered printed, and when printed to be committed to the Committee on Housing, Construction and Communi- ty Development AN ACT to amend the public authorities law, in relation to government sponsored enterprises; and to amend chapter 208 of the laws of 2010 amending the public authorities law relating to the powers of the state of New York mortgage agency, in relation to extending the provisions thereof THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 17 of section 2402 of the public authorities law, as amended by chapter 151 of the laws of 2013, is amended to read as follows: (17) "Government sponsored enterprises". Privately owned, publicly chartered entities, and wholly-owned corporate instrumentalities of the United States within the department of housing and urban development, created pursuant to 12 USC 1717(a)(2)(A), all created by Congress to encourage lending and reduce costs primarily in the housing sector of the economy, AND ANY SUCCESSOR ENTITY OR ENTITIES CREATED BY CONGRESS TO CONTINUE TO SERVE SAID PURPOSES. S 2. Section 4 of chapter 208 of the laws of 2010 amending the public authorities law relating to the powers of the state of New York mortgage agency, as amended by chapter 327 of the laws of 2012, is amended to read as follows: S 4. This act shall take effect immediately, provided that the amend- ments to subdivision 5 of section 2402 of the public authorities law made by section one of this act shall be subject to the expiration and reversion of such subdivision pursuant to section 16 of chapter 915 of the laws of 1982, as amended, when upon such date the provisions of section two of this act shall take effect; further provided that this act shall expire and be deemed repealed [December 31, 2014] JULY 23, 2015.
S 3. This act shall take effect immediately; provided, however, that the amendments to subdivision 17 of section 2402 of the public authori- ties law made by section one of this act shall not affect the repeal of such subdivision and shall be deemed to be repealed therewith.

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