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Sponsors
1 Co-sponsor
History
- Approval memo.12
- Signed chap.593
- Delivered to governor
- Returned to senate
- Passed assembly
- Ordered to third reading cal.102
- Substituted for A1913B
- Referred to codes
- Delivered to assembly
- Passed senateVote 62–0
- Amended on third reading 4038b
- Advanced to third reading
Show 5 earlier actions
- 2nd report cal.
- 1st report cal.781
- Print number 4038a
- Amend and recommit 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
Assembly Floor Calendar · Sponsor Hakeem Jeffries
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S4038B
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 tactics to coerce people to obtain loans for what are often unnecessary repairs. Frequently, these contractors target urban, low-income neighborhoods to solicit high interest second mortgages in order to finance construction work frequently performed in a careless or unprofessional manner. Elderly residents are particularly vulnerable to such schemes and the loss of home ownership often results.
High-pressure sales, the lack of accessible credit and the absence of traditional financial institutions has rendered many low income, urban communities especially susceptible to these deceptive practices. The purpose of this legislation is to stop this unjust activity, shield the buyers, and hold sellers accountable. The foreclosure crisis in New York State and throughout the nation has helped to plunge our economy into the worst economic crisis since the great depression. It is therefore important for the legislature to aggressively mitigate the risk of foreclosure by minimizing unnecessary second mortgages that often result in a loss of home ownership.
Prior legislative history
2009-10 A.170/S.1502 Passed the Assembly 2009 and 2010 2005-06 A.2152/S.7148 Passed the Assembly 2005 and 2006
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.