Senate Bill S3306

2021-2022 Legislative Session

Requires that notice of increase in mortgage escrow account be given in advance

download bill text pdf

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Archive: Last Bill Status - In Senate Committee Judiciary 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

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2021-S3306 (ACTIVE) - Details

Current Committee:
Senate Judiciary
Law Section:
General Obligations Law
Laws Affected:
Add §5-603, Gen Ob L
Versions Introduced in Other Legislative Sessions:
2009-2010: S442
2011-2012: S1899, S6229
2013-2014: S2700
2015-2016: S1934
2017-2018: S2268
2019-2020: S4090
2023-2024: S4684

2021-S3306 (ACTIVE) - Summary

Provides that a mortgage investing institution that maintains a mortgage on any real property in the state of New York shall give ten days written notice prior to requiring payment of an increase in the amount of escrow if the dollar amount of such increase is more than five percent of the total monthly payment; provides that no service charge shall be imposed for the giving of such notice; defines that term "mortgage investing institutions" as any banking organization or other entity engaged in the business of offering mortgage financing to the public or investing in mortgages.

2021-S3306 (ACTIVE) - Sponsor Memo

2021-S3306 (ACTIVE) - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3306
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 28, 2021
                                ___________
 
 Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Judiciary
 
 AN ACT to amend the general obligations law, in relation to increases in
   mortgage escrow account requirements
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The  general  obligations  law is amended by adding a new
 section 5-603 to read as follows:
   § 5-603. INCREASES IN  DEPOSITS  IN  ESCROW  WITH  MORTGAGE  INVESTING
 INSTITUTIONS.  ANY  MORTGAGE  INVESTING  INSTITUTION  THAT  MAINTAINS AN
 ESCROW ACCOUNT PURSUANT TO ANY AGREEMENT EXECUTED IN CONNECTION  WITH  A
 MORTGAGE  ON ANY REAL PROPERTY LOCATED IN THIS STATE SHALL GIVE AT LEAST
 TEN DAYS WRITTEN NOTICE PRIOR TO REQUIRING PAYMENT OF  ANY  INCREASE  IN
 THE  AMOUNT OF ESCROW IF THE DOLLAR AMOUNT OF SUCH INCREASE IS MORE THAN
 FIVE PERCENT OF THE DOLLAR AMOUNT OF THE TOTAL  MONTHLY  PAYMENT  (WHICH
 INCLUDES  PRINCIPAL,  INTEREST,  AND  ALL  ESCROW AMOUNTS) FOR THE MONTH
 PRIOR TO THE MONTH FOR WHICH  THE  INCREASE  IS  EFFECTIVE.  NO  SERVICE
 CHARGE  SHALL BE IMPOSED FOR THE GIVING OF SUCH NOTICE. FOR THE PURPOSES
 OF THIS SECTION, "MORTGAGE INVESTING INSTITUTION" SHALL MEAN ANY BANKING
 ORGANIZATION, AS DEFINED IN SECTION TWO OF THE BANKING LAW, OR ANY OTHER
 ENTITY ENGAGED IN THE BUSINESS OF OFFERING  MORTGAGE  FINANCING  TO  THE
 PUBLIC OR INVESTING IN MORTGAGES.
   §  2.  This  act shall take effect on the ninetieth day after it shall
 have become a law.
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07600-01-1

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