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Who cares
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Sponsors
No co-sponsors yet.
History
- Referred to local government
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the real property tax law and the banking law, in relation to the amounts held in mortgage escrow accounts
Purpose or general idea of bill
Currently, mortgage servicers are allowed to collect a two month reserve from a mortgagor, over and above the annual tax and insurance amounts. This bill would change the law to allow mortgage servicers to collect a one-month reserve.
Summary of specific provisions
Section one would amend subdivision 1 section 953 of the real property tax law to allow that the amount held in escrow be no more than one-twelfth the amount of the estimated taxes.
Section two would amend paragraph (a) of subdivision 2 of section 6-k of the banking law to allow that the amount held in escrow be no more than one twelfth the amount of the estimated taxes.
Justification
An escrow reserve is intended to allow a mortgagor to meet increased taxes or insurance costs without having to advance its own funds to cover a shortfall. Although servicers are required to pay interest on the escrow funds, the large reserve unfairly disadvantages the consumer. This law will benefit consumers by lowering monthly payments, and reducing closing costs.
Prior legislative history
This is a new bill.
Fiscal implications
None.
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.