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History
- Referred to banks
- Referred to banks
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Prohibits home improvement contractors from acting on behalf of mortgage brokers
In Senate Committee · Banks · Sponsor Hakeem Jeffries
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the banking law, in relation to the dealings of mortgage brokers and home improvement contractors
Purpose or general idea of bill
This legislation prohibits home improvement contractors from acting on behalf of mortgage brokers.
Justification
A conflict exists when home improvement contractors act on behalf of mortgage brokers, unscrupulously using high-pressure sales so that people will obtain loans for what are often unnecessary repairs. Frequently, these contractors target low-income neighborhoods to solicit high interest second mortgages in order to finance construction work that is usually careless or unfinished. The result is thousands of African-American, Puerto Rican/Latino and elderly homeowners facing eviction.
High-pressure sales, the lack of accessible credit and banking services has made these groups especially susceptible to these deceptions. At 20% interest, some monthly payments have reached as high as $1600, excessive for homeowners risking foreclosure. The purpose of this legislation is to stop these unjust selling practices, shield the buyers, and make sellers accountable.
The issue has spawned Congressional hearings, a New York City Consumer Affairs Department report, and debate in the Massachusetts State house. The victims of these schemes have been 32,000 minority homeowners in the neighborhoods of Brooklyn, Queens, and the Bronx over the last seven years.
Prior legislative history
S.4007 (of 1993-94), A.3150 (1995-96), A.124/S.256 (1997-98), A.4046 (1999-00), A.5969 (2001-02), A.4980 (2003-04),2005-06 (A.2152/S.7148)
Fiscal implications
None.
Effective date
Ninety days after it becomes law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.