Bill Text: NY S01144 | 2023-2024 | General Assembly | Amended

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Bill Title: Relates to unregistered and unlicensed mortgage brokers; establishes additional penalties against unlicensed or unregistered persons or entities engaging in activities after receiving a cease and desist notice.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed) 2023-05-10 - SUBSTITUTED BY A1153A [S01144 Detail]

Download: New_York-2023-S01144-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         1144--A
            Cal. No. 83

                               2023-2024 Regular Sessions

                    IN SENATE

                                    January 10, 2023
                                       ___________

        Introduced  by Sens. SANDERS, MANNION -- read twice and ordered printed,
          and when printed to be committed to the Committee on Banks -- reported
          favorably from said committee and committed to the Committee on  Rules
          -- reported favorably from said committee, ordered to a third reading,
          passed  by Senate and delivered to the Assembly, recalled, vote recon-
          sidered, restored to third reading,  amended  and  ordered  reprinted,
          retaining its place in the order of third reading

        AN  ACT  to amend the banking law, in relation to unregistered and unli-
          censed mortgage brokers

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1. Paragraph (e) of subdivision 5 of section 590 of the bank-
     2  ing law is relettered paragraph (f) and a new paragraph (e) is added  to
     3  read as follows:
     4    (e)  No  mortgage banker, mortgage broker or exempt organization shall
     5  conduct business with any person, partnership, association,  corporation
     6  or other entity which it knows or should have known is acting as a mort-
     7  gage banker or a mortgage broker without being licensed or registered as
     8  required  by  this article.   A person, partnership, association, corpo-
     9  ration or other entity who provides  non-residential  subordinate  loans
    10  shall  be exempt from this paragraph. A mortgage banker, mortgage broker
    11  or exempt organization shall promptly notify the department of any  such
    12  unlicensed or unregistered operations.
    13    §  2.  Subdivision  5  of  section 598 of the banking law, as added by
    14  chapter 571 of the laws of 1986, is amended to read as follows:
    15    5. Civil  penalties  assessable  against  unlicensed  or  unregistered
    16  persons or entities. If any non-exempt unlicensed or unregistered person
    17  or entity engages in activities encompassed by this article, he shall be
    18  liable  to any person or entity affected by such activities for a sum of
    19  money of not less than the amount of money paid to an affected person or
    20  entity in connection with such activities, nor more than four times such

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03777-03-3
        S. 1144--A                          2

     1  sum; provided however that where a non-exempt unlicensed or unregistered
     2  person has continued to engage in  such  unauthorized  activities  after
     3  receiving a cease and desist notice from the superintendent, the maximum
     4  amount  of  liability  shall be up to the amount of actual damages. Such
     5  sum may be sued for and recovered by any person or entity  for  his  use
     6  and benefit in any court of competent jurisdiction.
     7    §  3.  This  act shall take effect on the thirtieth day after it shall
     8  have become a law.