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NY S07224
Bill
Status
11/21/2014
Primary Sponsor
Hugh Farley
Click for details
AI Summary
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Amends Banking Law Section 6-m to add a new definition of "subprime home loan" for FHA-insured mortgages where annual mortgage insurance premiums are collected for the maximum federal duration.
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Defines subprime FHA loans as those where the initial interest rate or fully-indexed rate (whichever is higher) exceeds the average commitment rate for Northeast loans by more than 2.5 percentage points for first-lien loans or 4.5 percentage points for subordinate-lien loans.
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Establishes that the comparison rate shall be the average commitment rate published by Freddie Mac in its Weekly Primary Mortgage Market Survey (PMMS) from the week prior to when the lender provides the Good Faith Estimate.
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Excludes Title 1 home improvement loans and Home Equity Conversion Mortgages (reverse mortgages) from this definition.
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Takes effect immediately upon enactment.
Legislative Description
Relates to threshold rates for defining subprime home loans which are serviced by the federal housing administration.
Last Action
SIGNED CHAP.469
11/21/2014