Bill Text: NY A00633 | 2023-2024 | General Assembly | Introduced

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Bill Title: Provides that a veteran seeking a housing loan under chapter 37 of title 38 of the United States Code be offered loan counseling services by a counselor certified by the United States department of housing and urban development under Part 214 of Title 24 of the Code of Federal Regulations prior to the processing of such application by a banking institution or mortgage lender and that the department of veterans' services shall promulgate regulations to ensure that no conflicts of interest exist between counselors and mortgage companies.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced - Dead) 2023-02-15 - substituted by s2229 [A00633 Detail]

Download: New_York-2023-A00633-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                           633

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    January 10, 2023
                                       ___________

        Introduced  by M. of A. STERN -- read once and referred to the Committee
          on Banks

        AN ACT to amend the banking law, the executive  law  and  the  veterans'
          services  law, in relation to certain notices and services upon appli-
          cation for a mortgage guaranteed under the "Servicemen's  Readjustment
          Act  of 1944"; and providing for the repeal of certain provisions upon
          expiration thereof

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

     1    Section  1.  Section  6-p of the banking law, as added by a chapter of
     2  the laws of 2022 amending the banking law, the  executive  law  and  the
     3  veterans'  services  law  relating  to certain notices and services upon
     4  application for a mortgage guaranteed under the "Servicemen's  Readjust-
     5  ment  Act  of 1944", as proposed in legislative bills numbers S.  8670-A
     6  and A. 9493-A, is REPEALED and a new section 6-p is  added  to  read  as
     7  follows:
     8    §  6-p.  Loan  counseling for mortgages guaranteed by the Servicemen's
     9  Readjustment Act of 1944. Every mortgage lending institution  and  mort-
    10  gage  banker  which  originates  loans secured by real property used for
    11  residential purposes located in this state which are  to  be  guaranteed
    12  under the Servicemen's Readjustment Act of 1944 shall provide a separate
    13  disclosure  form  with each application stating that a veteran seeking a
    14  housing loan under chapter 37 of title 38 of the United States Code  has
    15  been  offered  loan  counseling  services. Such loan counseling services
    16  shall be provided by the department of veterans' services under  section
    17  twenty-nine-a  of  the  veterans' services law upon request of an appli-
    18  cant.  The disclosure form required by this section shall be  signed  by
    19  each  applicant  and  shall  include information detailing how to access
    20  such counseling services.
    21    § 2. Section 354-f of the executive law, as added by a chapter of  the
    22  laws  of 2022 amending the banking law, the executive law and the veter-

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04151-01-3
        A. 633                              2

     1  ans' services law relating to certain notices and services upon applica-
     2  tion for a mortgage guaranteed under the "Servicemen's Readjustment  Act
     3  of  1944",  as  proposed  in legislative bills numbers S.  8670-A and A.
     4  9493-A, is amended to read as follows:
     5    §  354-f. Loan counseling for mortgages guaranteed by the Servicemen's
     6  Readjustment Act of 1944. Upon the request of any veteran, the  division
     7  shall  provide  counseling  and  assistance to applicants for a mortgage
     8  loan guaranteed by the Servicemen's Readjustment  Act  of  1944.    Such
     9  service  shall  be provided either directly or through a contract with a
    10  not-for-profit entity which  has  a  Commercial  and  Government  Entity
    11  (CAGE)  code  assigned  by  the  federal System for Award Management and
    12  which is not owned by, affiliated with or operated by a mortgage  compa-
    13  ny.  Counselors shall be [licensed in this state as either a real estate
    14  broker or a mortgage broker] certified by the United  States  department
    15  of  housing and urban development under Part 214 of Title 24 of the Code
    16  of Federal Regulations. Loan counseling and assistance shall  include  a
    17  review  of  the  terms and restrictions of the loan[, information deter-
    18  mined by the state director to be appropriate for a  veteran  seeking  a
    19  housing  loan  under  chapter 37 of title 38 of the United States Code,]
    20  and any other information which may be required under federal law,  rule
    21  or  regulation.  The  division  may  promulgate regulations necessary to
    22  prevent any potential conflicts of interest between counselors and mort-
    23  gage companies to ensure that any  counseling  and  assistance  provided
    24  under  the provisions of this section shall be made in the best interest
    25  of the veteran seeking such mortgage loan.
    26    § 3. Section 29-a of the veterans' services law, as added by a chapter
    27  of the laws of 2022 amending the banking law, the executive law and  the
    28  veterans'  services  law  relating  to certain notices and services upon
    29  application for a mortgage guaranteed under the "Servicemen's  Readjust-
    30  ment  Act  of  1944", as proposed in legislative bills numbers S. 8670-A
    31  and A. 9493-A, is amended to read as follows:
    32    § 29-a. Loan counseling for mortgages guaranteed by  the  Servicemen's
    33  Readjustment  Act  of  1944. Upon the request of any veteran, the [divi-
    34  sion] department shall provide counseling and assistance  to  applicants
    35  for  a  mortgage loan guaranteed by the Servicemen's Readjustment Act of
    36  1944. Such service shall  be  provided  either  directly  or  through  a
    37  contract with a not-for-profit entity which has a Commercial and Govern-
    38  ment Entity (CAGE) code assigned by the federal System for Award Manage-
    39  ment  and  which is not owned by, affiliated with or operated by a mort-
    40  gage company. Counselors shall be [licensed in this state  as  either  a
    41  real  estate broker or a mortgage broker] certified by the United States
    42  department of housing and urban development under Part 214 of  Title  24
    43  of the Code of Federal Regulations. Loan counseling and assistance shall
    44  include a review of the terms and restrictions of the loan[, information
    45  determined by the state director to be appropriate for a veteran seeking
    46  a  housing loan under chapter 37 of title 38 of the United States Code,]
    47  and any other information which may be required under federal law,  rule
    48  or  regulation.  The  department may promulgate regulations necessary to
    49  prevent any potential conflicts of interest between counselors and mort-
    50  gage companies to ensure that any  counseling  and  assistance  provided
    51  under  the provisions of this section shall be made in the best interest
    52  of the veteran seeking such mortgage loan.
    53    § 4. This act shall take effect on the  same  date  and  in  the  same
    54  manner  as  a  chapter of the laws of 2022 amending the banking law, the
    55  executive law and the veterans' services law relating to certain notices
    56  and services upon  application  for  a  mortgage  guaranteed  under  the
        A. 633                              3

     1  "Servicemen's  Readjustment  Act  of  1944",  as proposed in legislative
     2  bills numbers S. 8670-A and  A.  9493-A,  takes  effect;  provided  that
     3  section  one  of  this act shall take effect on the same date and in the
     4  same  manner  as section 2 of part PP of chapter 56 of the laws of 2022,
     5  takes effect; and provided, further that the amendments to section 354-f
     6  of the executive law made by section two of this act  shall  not  affect
     7  the repeal of such section and shall expire and be deemed repealed ther-
     8  ewith.