Bill S886-2011

Prohibits compensation based on home loan terms by a mortgage broker or mortgage lender

Prohibits compensation based on home loan terms by mortgage brokers or mortgage lenders.

Details

Actions

  • Aug 17, 2012: SIGNED CHAP.404
  • Aug 6, 2012: DELIVERED TO GOVERNOR
  • Jun 19, 2012: returned to senate
  • Jun 19, 2012: passed assembly
  • Jun 19, 2012: ordered to third reading rules cal.381
  • Jun 19, 2012: substituted for a7329
  • Mar 21, 2012: referred to banks
  • Mar 21, 2012: DELIVERED TO ASSEMBLY
  • Mar 21, 2012: PASSED SENATE
  • Mar 13, 2012: ADVANCED TO THIRD READING
  • Mar 12, 2012: 2ND REPORT CAL.
  • Mar 7, 2012: 1ST REPORT CAL.314
  • Mar 6, 2012: NOTICE OF COMMITTEE CONSIDERATION - WITHDRAWN
  • Feb 21, 2012: NOTICE OF COMMITTEE CONSIDERATION - REQUESTED
  • Jan 4, 2012: REFERRED TO BANKS
  • Jan 5, 2011: REFERRED TO BANKS

Meetings

Calendars

Votes

VOTE: COMMITTEE VOTE: - Banks - Mar 7, 2012
Ayes (13): Farley, Bonacic, DeFrancisco, Marcellino, Smith, Breslin, Carlucci, Diaz, Krueger, Rivera, Savino, Valesky, Avella
Ayes W/R (6): Griffo, Gallivan, Golden, Johnson, O'Mara, Ranzenhofer

Memo

BILL NUMBER:S886

TITLE OF BILL: CONCURRENT RESOLUTION OF THE SENATE AND ASSEMBLY proposing an amendment to section 2 of article 6 of the constitution, in relation to persons appointed to the court of appeals, and proposing an amendment to section 25 of article 6 of the constitution, in relation to service by retired justices and requiring judges of the court of appeals to retire at age 80

PURPOSE OF BILL: To raise from 76 to 80 the maximum age that retired judges may be certified to continue to serve, and to raise the retirement age for judges of the Court of Appeals.

SUMMARY OF PROVISIONS OF BILL: Amends subdivision (e) of section 2 of Article 6 and subdivision (b) of section 25 of Article 6 of the New York State Constitution to increase the maximum age for which a judge, justice or retired justice can serve.

JUSTIFICATION: The State Constitution requires judges to retire at the end of the calendar year in which they turn 70. It also authorizes judges to be certified to continue to serve up to three times in two year increments, until age 76. The certification must find that that his or her services are necessary to expedite the business of the Court, and that he or she is physically and mentally competent to fully perform the duties of the office.

This constitutional amendment would raise the age through which retired judges can continue to serve from 76 to 80, allowing the State to retain experienced and able judges who are willing to work. In addition, this measure would change the retirement age for judges of the Court of Appeals from 70 to 80, provided that no judge could be appointed to the Court of Appeals after they have reached the last day of December of the year in which they turn 70, consistent with the existing constitutional provision.

In 1999, The Office of Court Administration's Task Force on Mandatory Retirement of Judges concluded that "it is in the best interests of the judiciary and the people of the State of New York to amend the laws governing mandatory retirement of judges." The two recommendations made in that, report - creation of a "senior status" and expansion of the certification process to judges not covered by it - were not acted upon.

This measure takes a different approach - amending the Constitution to increase the age until which judges can be certified from 76 to 80. Raising the age that retired judges can serve from 76 to 80 will

enable the state judiciary to continue to benefit from the service of many dedicated, experienced and productive judges currently being lost.

In addition, this bill provides that Court of Appeals judges would be able to serve out the end of their fourteen years terms without being required to retire at age 70, although appointment past the age of 70 would not be possible.

LEGISLATIVE HISTORY: S.5827 of 2011: Passed Senate and Assembly. Delivered to Secretary of State

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None anticipated.

EFFECTIVE DATE: RESOLVED (if the Assembly concur), That the foregoing be referred to the first regular legislative session convening after the next succeeding general election of members of the assembly, and, in conformity with section 1 of article 19 of the constitution, be published for 3 months previous to the time of such election.


Text

STATE OF NEW YORK ________________________________________________________________________ 886 2011-2012 Regular Sessions IN SENATE (PREFILED) January 5, 2011 ___________
Introduced by Sen. KRUEGER -- 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 prohibiting compensation based on the terms of a home loan by mortgage brokers and mortgage lenders THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 590-b of the banking law is amended by adding a new subdivision 3-a to read as follows: 3-A. IN CONNECTION WITH THE MAKING OR BROKERING OF A HOME LOAN, NO PERSON MAY PROVIDE, AND NO MORTGAGE BROKER OR MORTGAGE LENDER MAY RECEIVE, DIRECTLY OR INDIRECTLY, ANY COMPENSATION THAT IS BASED ON, OR VARIES WITH, THE TERMS OF ANY HOME LOAN. THIS SUBDIVISION SHALL NOT PROHIBIT COMPENSATION BASED ON THE PRINCIPAL BALANCE OF THE LOAN. S 2. Paragraph (s) of subdivision 2 of section 6-l of the banking law, as amended by chapter 507 of the laws of 2009, is amended to read as follows: (s) No [abusive] yield spread premiums. [In arranging a high-cost home loan, the mortgage broker shall, within three days after receipt of an application, disclose the exact amount and methodology of total compen- sation that the broker will receive. Such amount may be paid as direct compensation from the lender, direct compensation from the borrower, or a combination of the two if permitted by applicable law. The provisions of this paragraph shall not restrict the ability of a borrower to utilize a yield spread premium in order to offset any up front costs by accepting a higher interest rate if permitted by applicable law. If the borrower chooses this option, any compensation from the lender that exceeds the amount of total compensation owed to the broker must be credited to the borrower. The superintendent shall prescribe the form that such disclosure shall take. This provision shall not restrict a
broker from accepting a lesser amount of compensation.]
IN CONNECTION WITH THE MAKING OR BROKERING OF A HOME LOAN, NO PERSON MAY PROVIDE, AND NO MORTGAGE BROKER OR MORTGAGE LENDER MAY RECEIVE, DIRECTLY OR INDIRECT- LY, ANY COMPENSATION THAT IS BASED ON, OR VARIES WITH, THE TERMS OF ANY HOME LOAN. THIS PARAGRAPH SHALL NOT PROHIBIT COMPENSATION BASED ON THE PRINCIPAL BALANCE OF THE LOAN. S 3. Paragraph (n) of subdivision 2 of section 6-m of the banking law, as amended by chapter 507 of the laws of 2009, is amended to read as follows: (n) No [abusive] yield spread premiums. [In arranging a subprime home loan, the mortgage broker shall, within three days after receipt of an application, disclose the exact amount and methodology for determining the total compensation that the broker will receive. Such amount may be paid as direct compensation from the lender, direct compensation from the borrower, or a combination of the two if permitted by applicable law. The provisions of this paragraph shall not restrict the ability of a borrower to utilize a yield spread premium in order to offset any upfront costs by accepting a higher interest rate if permitted by appli- cable law. If the borrower chooses this option, any compensation from the lender that exceeds the exact amount of total compensation owed to the broker must be credited to the borrower. The superintendent shall prescribe the form that such disclosure shall take. This paragraph shall not restrict a broker from accepting a lesser amount of compensation.] IN CONNECTION WITH THE MAKING OR BROKERING OF A HOME LOAN, NO PERSON MAY PROVIDE, AND NO MORTGAGE BROKER OR MORTGAGE LENDER MAY RECEIVE, DIRECTLY OR INDIRECTLY, ANY COMPENSATION THAT IS BASED ON, OR VARIES WITH, THE TERMS OF ANY HOME LOAN. THIS PARAGRAPH SHALL NOT PROHIBIT COMPENSATION BASED ON THE PRINCIPAL BALANCE OF THE LOAN. S 4. This act shall take effect immediately.

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