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S7183Senate2015-2016 SessionSame asA9746

Relates to defining consummation of a mortgage loan

Sponsor Diane J. SavinoSD-23Affects Finance
Status
Signed by Governor
Impact
Pending
Outcome
Signed into law

Bill progress

Signed into law

What's happening

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Who cares

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Sponsors

Primary sponsor
Diane J. Savino

Senator · Senate District 23

Chair, Banks

No co-sponsors yet.

History

  1. Approval memo.18
  2. Signed chap.491
  3. Delivered to governor
  4. Returned to senate
  5. Passed assembly
  6. Ordered to third reading cal.837
  7. Substituted for A9746
  8. Referred to banks
  9. Delivered to assembly
  10. Passed senateVote 57–1
  11. Advanced to third reading
  12. 2nd report cal.
Show 2 earlier actions
  1. 1st report cal.818
  2. 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.

A9746Assembly

Relates to the definition of consummation of a mortgage loan

Assembly Floor Calendar · Sponsor Diana Richardson

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 definition of consummation of a mortgage loan

Purpose

To define the term "consummation of a mortgage loan."

Summary of provisions

The bill amends the banking by adding a new subdivision 30, defining the term "consummation of a mortgage loan" as when the applicant for the mortgage loan executes the promissory note and mortgage.

Justification

The Consumer Financial Protection Bureau is imposing new mortgage disclosure requirements tied to when a mortgage loan is "consummated" as defined by state law. These new requirements can only be properly implemented if lenders know when New York State considers a mortgage loan to be a consummated contract with binding obligations imposed on both the lender and the borrower. Unfortunately, it is not clear whether a loan is consummated at closing or much earlier in the process when both the mortgagor and mortgagee sign a mortgage commitment letter. New York has no statutory definition of mortgage consummation. As a result, case law is the controlling guide to when consummation occurs.

Fiscal implications

None noted.

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.