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NY A08909
Bill
Status
1/27/2012
Primary Sponsor
Hakeem Jeffries
Click for details
AI Summary
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Prohibits mortgage brokers from requiring home improvement contractors to be paid directly when the broker has solicited, processed, placed or negotiated a mortgage loan.
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Requires home improvement contractors to receive payment either from home improvement loan proceeds payable solely to the borrower or through an independent third-party escrow agent under a written agreement signed by the borrower, lender, and contractor.
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Forbids mortgage brokers from offering different loan terms to homeowners based on whether they execute a third-party payment agreement.
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Mandates that payment agreements include a clear disclosure stating the homeowner is not required to sign the agreement and the mortgage broker cannot offer different loan terms for signing.
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Exempts FHA-insured home improvement loans under Section 203(K) of the National Housing Act and the Energy Efficiency Mortgage Program from these payment requirements.
Legislative Description
Relates to the dealings of mortgage brokers and home improvement contractors; exempts from provisions relating to payment of mortgage proceeds to a borrower or third party, rather than directly to a home improvement contractor, those home improvement loans insured by the FHA under the National Housing Act or the Energy Policy Act of 1992.
Last Action
signed chap.5
1/27/2012