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NY S02229

Bill

Status

Passed

3/3/2023

Primary Sponsor

James Sanders

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Origin

Senate

2023-2024 General Assembly

AI Summary

  • Requires mortgage lending institutions and mortgage bankers originating loans for residential properties in New York that are guaranteed under the Servicemen's Readjustment Act of 1944 to provide a separate disclosure form with each application stating that loan counseling services are available.

  • Changes counselor qualification requirements from state licensure as a real estate broker or mortgage broker to certification by the U.S. Department of Housing and Urban Development under Part 214 of Title 24 of the Code of Federal Regulations.

  • Authorizes the Division of Veterans' Services to provide loan counseling and assistance either directly or through a contract with a not-for-profit entity that has a CAGE code and is not owned, affiliated with, or operated by a mortgage company.

  • Requires the Department of Veterans' Services to promulgate regulations to prevent conflicts of interest between counselors and mortgage companies and ensure counseling is provided in the veteran's best interest.

  • Repeals and replaces previous provisions related to mortgage counseling for veteran applicants and ties the effective date to the 2022 law establishing the original counseling requirements.

Legislative Description

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.

Last Action

SIGNED CHAP.102

3/3/2023

Committee Referrals

Banks2/7/2023
Rules1/19/2023

Full Bill Text

No bill text available
NY S 02229 - Passed | New York 2023 Bill | Vulcan Bills