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Who cares
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Sponsors
2 Co-sponsors
2 Multi-sponsors
History
- Held for consideration in consumer affairs and protection
- Referred to consumer affairs and protection
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:A10602
Title of bill
An act to amend the general business law, in relation to informing consumers of the effect of mortgage rate shopping on their credit rating
Purpose or general idea of bill
This bill amends the general business law to require any entity that provides mortgages to inform its custom- ers of the potential adverse effect mortgage rate shopping may have on the customers' credit ratings.
Summary of specific provisions
Section one amends Section 380-t of the general business law, as re-lettered by section 619 of the laws of 2002, is re-lettered section 380-u by adding a new section 380-t, notification of effect of mortgage rate shopping. Any entity that provides mortgages to consumers shall notify any consumer of the effect of mortgage rate shopping prior to such entity requesting a credit report on such custom- er. The entity shall inform the consumer that mortgage rate shopping may adversely affect the consumer's credit rating. The consumer shall have the option of canceling his or her request to the entity.
Justification
Currently, when a consumer is shopping for a mortgage rate, their FICO credit score is adversely affected when they engage in comparison-shopping. By simply inquiring for competing rates, the credit-reporting bureau is treating the situation as potentially taking on greater indebtedness. The consumer is rarely notified that a credit check will lower their score. A consumer should be able to shop competi- tively for a mortgage without unknowingly having their FICO credit score lowered. At a minimum consumers should be notified that mortgage rate shopping may adversely affect their credit rating.
Prior legislative history
A6306 of 2005-2006. A1415 of 2007-2008.
Fiscal implications for state and local governments
None.
Effective date
This act shall take effect on the sixtieth day after it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.