Bill Text: NY S02883 | 2023-2024 | General Assembly | Introduced

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Bill Title: Establishes the New American homebuyer assistance program within the state of New York mortgage agency to assist first time homebuyers by imposing flexible documentation guidelines that take into account foreign documentation of income and assets.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2024-01-03 - REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS [S02883 Detail]

Download: New_York-2023-S02883-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          2883

                               2023-2024 Regular Sessions

                    IN SENATE

                                    January 25, 2023
                                       ___________

        Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
          printed to be committed to the Committee on Corporations,  Authorities
          and Commissions

        AN  ACT to amend the public authorities law, in relation to establishing
          the new American homebuyer assistance program within the state of  New
          York mortgage agency

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. The public authorities law  is  amended  by  adding  a  new
     2  section 2428-b to read as follows:
     3    §  2428-b.  New  American homebuyer assistance program. 1.  Establish-
     4  ment. The agency is hereby authorized and directed  to  create,  manage,
     5  and maintain the "new American homebuyer assistance program".  The agen-
     6  cy  shall  make such rules and regulations as necessary to implement the
     7  new American homebuyer assistance program.  The purpose of  the  program
     8  is  to  provide  homebuyer  assistance to eligible homebuyers purchasing
     9  their first residence by imposing flexible documentation guidelines that
    10  take into account foreign documentation of income and assets.
    11    2. Definitions. For purposes of this section:
    12    (a) "Residence" means a single-family home, a one to four family home,
    13  a condominium housing unit or a housing  unit  owned  by  a  cooperative
    14  housing corporation, that is located within the state.
    15    (b)  "Eligible  homebuyer"  means  any  person who (a) has not had any
    16  ownership interest in his or her primary residence that is located with-
    17  in the United States at any time during the three  years  prior  to  the
    18  date  of  making  an  application  for  an  agency mortgage loan; (b) is
    19  currently an alien admitted to the United States as a  lawful  permanent
    20  resident  within  the  past ten years and; (c) at the time of making the
    21  loan application to the agency, does not own a  vacation  or  investment
    22  home  whether  such  vacation  or investment home is owned in the United

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04628-01-3
        S. 2883                             2

     1  States or abroad. This includes a spouse or a single parent who has only
     2  owned with a former spouse while married.
     3    3.  Program  features  and  requirements.  The agency shall create and
     4  implement the new American homebuyer assistance program subject  to  the
     5  following features and requirements:
     6    (a) flexible documentation requirements that take into account foreign
     7  documentation of income and assets;
     8    (b) household income eligibility income limits up to one hundred thir-
     9  ty percent of area median income;
    10    (c)  debt  to  income  calculations that include the borrower's actual
    11  student loan payments regardless of  whether  the  payments  will  fully
    12  amortize  the  loan, regardless of whether the borrower is on an income-
    13  based or standard repayment plan;
    14    (d) student loan payments calculated at the  average  monthly  payment
    15  amount  made  by the borrower during the preceding twelve months, or the
    16  borrower's current payment, whichever is higher;
    17    (e) loans will be offered for fixed interest rate, thirty  year  terms
    18  only;
    19    (f) a loan-to-value ratio of ninety-seven percent;
    20    (g) no prepayment penalties shall be assessed to the borrower;
    21    (h)  utilization of and full access to the agency down payment assist-
    22  ance program financing;
    23    (i) a call center to assist applicants;
    24    (j) call center translation services shall be made available to appli-
    25  cants in English, Spanish, and any other language that the agency deter-
    26  mines, based on the size  of  the  state  population  that  speaks  each
    27  language  and  any  other  factor  that the chairman of the agency deems
    28  relevant and;
    29    (k) all guidance documents and application materials shall  be  avail-
    30  able  to applicants in English, Spanish, and any other language that the
    31  agency determines, based on the size of the state population that speaks
    32  each language and any other factor that the chairman of the agency deems
    33  relevant.
    34    4. Eligibility.  (a) In addition to other limitations, the new  Ameri-
    35  can  homebuyer assistance program shall be available to a eligible home-
    36  buyer only.
    37    (b) The program shall only be available to a borrower if and  so  long
    38  as  the  borrower  occupied  the agency-financed home as their permanent
    39  residence.
    40    (c) The program shall only be available  to  residences  that  do  not
    41  exceed the agency's purchase price/appraised value limits.
    42    (d)  Except  as  provided  in  the  program  features and requirements
    43  contained in subdivision three of this section, the agency may implement
    44  such procedures and requirements as necessary including, but not limited
    45  to, outreach, education, counseling, and other borrower requirements  or
    46  disclosures.
    47    5.  Terms  of financing.   Notwithstanding any other provision of law,
    48  the agency is authorized to require, as a condition to the financing  of
    49  any  mortgage  with  respect  to  the  new American homebuyer assistance
    50  program, such restrictions upon assumability of  the  mortgage,  default
    51  provisions, rights to accelerate, and such other terms as the agency may
    52  determine  to  be  necessary  or  desirable.    All  such terms shall be
    53  enforced by the originating bank, the agency, and any  successor  holder
    54  of  the  mortgage  unless expressly waived in writing by or on behalf of
    55  the agency. Subject to the features and requirements  of  this  section,
        S. 2883                             3

     1  the  agency  may  create and enforce credit underwriting standards as to
     2  ensure the continued solvency of the program.
     3    § 2. This act shall take effect immediately.