Bill Text: NY S06229 | 2011-2012 | General Assembly | Introduced

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Bill Title: 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.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2012-01-17 - REFERRED TO JUDICIARY [S06229 Detail]

Download: New_York-2011-S06229-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         6229
                                   I N  S E N A T E
                                   January 17, 2012
                                      ___________
       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:
    1    Section  1.  The  general  obligations  law is amended by adding a new
    2  section 5-603 to read as follows:
    3    S 5-603. INCREASES IN  DEPOSITS  IN  ESCROW  WITH  MORTGAGE  INVESTING
    4  INSTITUTIONS.  ANY  MORTGAGE  INVESTING  INSTITUTION  THAT  MAINTAINS AN
    5  ESCROW ACCOUNT PURSUANT TO ANY AGREEMENT EXECUTED IN CONNECTION  WITH  A
    6  MORTGAGE  ON ANY REAL PROPERTY LOCATED IN THIS STATE SHALL GIVE AT LEAST
    7  TEN DAYS WRITTEN NOTICE PRIOR TO REQUIRING PAYMENT OF  ANY  INCREASE  IN
    8  THE  AMOUNT OF ESCROW IF THE DOLLAR AMOUNT OF SUCH INCREASE IS MORE THAN
    9  FIVE PERCENT OF THE DOLLAR AMOUNT OF THE TOTAL  MONTHLY  PAYMENT  (WHICH
   10  INCLUDES  PRINCIPAL,  INTEREST,  AND  ALL  ESCROW AMOUNTS) FOR THE MONTH
   11  PRIOR TO THE MONTH FOR WHICH  THE  INCREASE  IS  EFFECTIVE.  NO  SERVICE
   12  CHARGE  SHALL BE IMPOSED FOR THE GIVING OF SUCH NOTICE. FOR THE PURPOSES
   13  OF THIS SECTION, "MORTGAGE INVESTING INSTITUTION" SHALL MEAN ANY BANKING
   14  ORGANIZATION, AS DEFINED IN SECTION TWO OF THE BANKING LAW, OR ANY OTHER
   15  ENTITY ENGAGED IN THE BUSINESS OF OFFERING  MORTGAGE  FINANCING  TO  THE
   16  PUBLIC OR INVESTING IN MORTGAGES.
   17    S  2.  This  act shall take effect on the ninetieth day after it shall
   18  have become a law.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD07237-02-2