Bill Text: NY A03894 | 2015-2016 | General Assembly | Introduced

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Bill Title: Requires mortgagee banks to provide written notice to mortgagor when such mortgagor is no longer required to maintain personal mortgage insurance coverage; provides such notice shall be delivered to the mortgagor within thirty days of the date upon which the mortgagor shall have acquired sufficient equity in real property subject to the mortgage so as to eliminate the necessity for personal mortgage insurance.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2016-01-06 - referred to banks [A03894 Detail]

Download: New_York-2015-A03894-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         3894
                              2015-2016 Regular Sessions
                                 I N  A S S E M B L Y
                                   January 28, 2015
                                      ___________
       Introduced by M. of A. WRIGHT -- read once and referred to the Committee
         on Banks
       AN  ACT  to  amend  the  banking  law, in relation to requiring mortgage
         investing institutions to provide notice when personal mortgage insur-
         ance is no longer required
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.  The banking law is amended by adding a new section 6-n to
    2  read as follows:
    3    S 6-N. PERSONAL MORTGAGE INSURANCE. 1. DEFINITIONS. AS  USED  IN  THIS
    4  SECTION:
    5    (A)  "MORTGAGE  INVESTING  INSTITUTION" MEANS ANY BANK, TRUST COMPANY,
    6  NATIONAL BANK, SAVINGS  BANK,  SAVINGS  AND  LOAN  ASSOCIATION,  FEDERAL
    7  SAVINGS  BANK,  FEDERAL  SAVINGS  AND  LOAN ASSOCIATION, PRIVATE BANKER,
    8  CREDIT UNION, FEDERAL CREDIT UNION, INVESTMENT  COMPANY,  PENSION  FUND,
    9  LICENSED  MORTGAGE BANKER OR ANY OTHER ENTITY WHICH REQUIRES A MORTGAGOR
   10  TO MAINTAIN PERSONAL MORTGAGE INSURANCE.
   11    (B) "MORTGAGOR" MEANS A PERSON OR PERSONS HAVING TITLE TO AND  OCCUPY-
   12  ING  A  ONE  TO FOUR FAMILY RESIDENCE LOCATED IN THIS STATE AND WHICH IS
   13  SUBJECT TO A MORTGAGE.
   14    (C) "PERSONAL MORTGAGE INSURANCE" MEANS A  POLICY  OF  INSURANCE,  THE
   15  PREMIUMS  FOR WHICH ARE PAID BY A MORTGAGOR, WHICH PROVIDES COVERAGE FOR
   16  THE DIFFERENCE BETWEEN THE PRINCIPAL OWED ON A MORTGAGE AND  THE  AMOUNT
   17  WHICH  WOULD  BE  DERIVED  AT  A  FORECLOSURE  SALE OF THE REAL PROPERTY
   18  SUBJECT TO SUCH MORTGAGE.
   19    2. NOTICE. EVERY MORTGAGE INVESTING INSTITUTION SHALL PROVIDE  WRITTEN
   20  NOTICE TO A MORTGAGOR WHEN SUCH MORTGAGOR IS NO LONGER REQUIRED TO MAIN-
   21  TAIN  PERSONAL  MORTGAGE INSURANCE COVERAGE. SUCH NOTICE SHALL BE DELIV-
   22  ERED TO THE MORTGAGOR WITHIN THIRTY DAYS OF  THE  DATE  UPON  WHICH  THE
   23  MORTGAGOR  SHALL  HAVE  ACQUIRED  SUFFICIENT EQUITY IN THE REAL PROPERTY
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD05177-01-5
       A. 3894                             2
    1  SUBJECT TO THE MORTGAGE SO AS TO ELIMINATE THE  NECESSITY  FOR  PERSONAL
    2  MORTGAGE INSURANCE COVERAGE.
    3    S  2.  This  act shall take effect on the thirtieth day after it shall
    4  have become a law.