Bill Text: NY A01430 | 2009-2010 | General Assembly | Introduced

New York Assembly Bill 1430 (Prior Session Legislation)

Introduced

Bill Title: An act to amend the banking law, in relation to requiring mortgage investing institutions to provide notice when personal mortgage insurance is no longer required

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2010-01-06 - referred to banks [A01430 Detail]

Download: New_York-2009-A01430-Introduced.html

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         1430
                              2009-2010 Regular Sessions
                                 I N  A S S E M B L Y
                                      (PREFILED)
                                    January 7, 2009
                                      ___________
       Introduced by M. of A. WRIGHT -- read once and referred to the Committee
         on Banks
       AN  ACT  to  amend  the  banking  law, in relation to requiring mortgage
         investing institutions to provide notice when personal mortgage insur-
         ance is no longer required
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.  The banking law is amended by adding a new section 6-n to
    2  read as follows:
    3    S 6-N. PERSONAL MORTGAGE INSURANCE. 1. DEFINITIONS. AS  USED  IN  THIS
    4  SECTION:
    5    (A)  "MORTGAGE  INVESTING  INSTITUTION" MEANS ANY BANK, TRUST COMPANY,
    6  NATIONAL BANK, SAVINGS  BANK,  SAVINGS  AND  LOAN  ASSOCIATION,  FEDERAL
    7  SAVINGS  BANK,  FEDERAL  SAVINGS  AND  LOAN ASSOCIATION, PRIVATE BANKER,
    8  CREDIT UNION, FEDERAL CREDIT UNION, INVESTMENT  COMPANY,  PENSION  FUND,
    9  LICENSED  MORTGAGE BANKER OR ANY OTHER ENTITY WHICH REQUIRES A MORTGAGOR
   10  TO MAINTAIN PERSONAL MORTGAGE INSURANCE.
   11    (B) "MORTGAGOR" MEANS A PERSON OR PERSONS HAVING TITLE TO AND  OCCUPY-
   12  ING  A  ONE  TO FOUR FAMILY RESIDENCE LOCATED IN THIS STATE AND WHICH IS
   13  SUBJECT TO A MORTGAGE.
   14    (C) "PERSONAL MORTGAGE INSURANCE" MEANS A  POLICY  OF  INSURANCE,  THE
   15  PREMIUMS  FOR WHICH ARE PAID BY A MORTGAGOR, WHICH PROVIDES COVERAGE FOR
   16  THE DIFFERENCE BETWEEN THE PRINCIPAL OWED ON A MORTGAGE AND  THE  AMOUNT
   17  WHICH  WOULD  BE  DERIVED  AT  A  FORECLOSURE  SALE OF THE REAL PROPERTY
   18  SUBJECT TO SUCH MORTGAGE.
   19    2. NOTICE. EVERY MORTGAGE INVESTING INSTITUTION SHALL PROVIDE  WRITTEN
   20  NOTICE TO A MORTGAGOR WHEN SUCH MORTGAGOR IS NO LONGER REQUIRED TO MAIN-
   21  TAIN  PERSONAL  MORTGAGE INSURANCE COVERAGE. SUCH NOTICE SHALL BE DELIV-
   22  ERED TO THE MORTGAGOR WITHIN THIRTY DAYS OF  THE  DATE  UPON  WHICH  THE
   23  MORTGAGOR  SHALL  HAVE  ACQUIRED  SUFFICIENT EQUITY IN THE REAL PROPERTY
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD00245-01-9
       A. 1430                             2
    1  SUBJECT TO THE MORTGAGE SO AS TO ELIMINATE THE  NECESSITY  FOR  PERSONAL
    2  MORTGAGE INSURANCE COVERAGE.
    3    S  2.  This  act shall take effect on the thirtieth day after it shall
    4  have become a law.