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History
- Referred to judiciary
- Referred to judiciary
Full text
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Sponsor's memo
Title of bill
An act to amend the real property law, in relation to real property appraisals in certain cases
Summary
This bill would amend Real Property Law §254-C(1) to require that a copy of any real estate appraisal required by a lender as part of a mortgage application be available to the applicant at the closing, if requested in writing at least ten days prior to the closing.
Justification
In 1983, the Legislature enacted Section 254-c of the Real Property Law to give residential mortgage applicants the right to a copy of any real estate appraisal of the property involved. Under this law, applicants are entitled to a copy of the real estate appraisal provided that: 1) the lender mandates an appraisal as part of the mortgage application process, 2) the applicant is required to pay for the appraisal and 3) the applicant requests a copy of the appraisal in writing.
Chapter 245 of the Laws of 1983 was enacted in response to the failure of many lending institutions to provide borrowers with copies of real estate appraisals, even though the lender required them and required the borrower to bear the cost of securing these appraisals. By giving such borrowers a right to a copy of the appraisal Chapter 245 sought to correct this situation.
Unfortunately, the new law failed to specify a time period for compliance. Although written requests for copies of real estate appraisals may have been made prior to the closing, the appraisal itself need not be made available at the closing.
This situation is further compounded by the fact that many major lenders may take the mortgage application in one branch office, process the application in another part of the State and eventually store all the mortgage materials in yet another part of the State. This makes securing a copy of the appraisal very difficult for some borrowers.
This bill would remedy this situation by requiring lenders to have a copy of the appraisal at the closing, provided that the borrower makes a written request at least ten days prior to the closing.
Fiscal implications
None.
Effective date
This act shall take effect on the one hundred twentieth 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.