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NY A01240
Bill
Status
1/7/2009
Primary Sponsor
William Colton
Click for details
AI Summary
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Defines sub-prime mortgages as those with APR greater than 3 percentage points above comparable Treasury securities for first-lien mortgages, or 5 percentage points for subordinate-lien mortgages on dwellings.
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Requires mortgage brokers and lenders to provide borrowers with written disclosure at least 60 days before closing, including pre-ARM and post-ARM monthly payments, property taxes, insurance costs, recommended monthly income requirements, and a link to the Department's sub-prime mortgage website.
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Mandates the Department establish a website with a calculator to help borrowers determine if mortgages fit their budget and explain sub-prime mortgage risks.
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Creates private right of action for borrowers with 6-year statute of limitations, with penalties of $5,000 per violation or twice the points, fees, and closing costs (whichever is greater), plus actual damages and attorney's fees.
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Authorizes courts to void mortgages for intentional violations, rescind transactions upon judicial finding of violations, and allow borrowers to assert claims against assignees without time limitations.
Legislative Description
Enacts the "disclosure in lending act"; provides greater disclosure to borrowers; requires a depiction, chart or table be given to borrowers of certain information; requires the banking department to establish a website dedicated to the risk of sub-prime mortgages; grants enforcement actions.
Last Action
referred to banks
1/6/2010