What's happening
Writing a plain-English summary… Track this bill to get it by email.
Why it matters
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Sponsors
No co-sponsors yet.
History
- Referred to 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:A233
Title of bill
An act to amend the general business law, in relation to prohibiting entities from engaging in the business of offering, at the same time and place, real estate broker services, mortgage broker services, appraiser services and legal services to first time home buyers
Purpose or general idea of bill
To ban "one-stop shops" for first time home buyers.
Summary of specific provisions
Section 1. The general business law is amended by adding a new section 395c. This section relates to unlawful practices for first time home buyers. And states: no person, partner- ship, association, corporation or entity shall engage in the business of offering, at the same time and place, real estate broker services, mort- gage broker services, real estate appraiser services and legal services to first time home buyers.
Justification
In the July, 2008, New York State Commission of Investi- gation's "A Perfect Storm: Easy Money and the Mortgage Meltdown, The Subprime Mortgage Crisis in New York State", the commission found that first-time homebuyers were often taken advantage of by "one-stop shop- ping" enterprises where the buyer could obtain the real estate broker, mortgage broker, appraiser and attorney services under one roof. They also found that while it appeared to be a convenient arrangement for the home buyer, it served as a significant conflict of interest and a breed- ing ground for fraud.
One-stop shops are frequently found in minority neighborhoods and utilize the same scam to take advantage of first-time homebuyers. The scam that is frequently practiced relies on the fact that first-time homebuyers have no previous experience in the real estate market. Often, an unscrupulous real estate or mortgage broker will take care of everything for this buyer, including arranging for the mortgage, the appraisal and the attorney. In order for the scam to work, the real estate broker, the mortgage broker, the appraiser and the attorney, all located in one agency, work together and have the common interest of originating the mortgage and collecting the attendant fees, without regard to whether the borrower can actually afford the loan.
Prior legislative history
New Bill
Fiscal implications
Unknown
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.