Bill Text: NY S04399 | 2013-2014 | General Assembly | Amended
Bill Title: Relates to the powers of the State of New York Mortgage Agency.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2013-07-12 - SIGNED CHAP.151 [S04399 Detail]
Download: New_York-2013-S04399-Amended.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 4399--A Cal. No. 543 2013-2014 Regular Sessions I N S E N A T E March 26, 2013 ___________ Introduced by Sen. YOUNG -- read twice and ordered printed, and when printed to be committed to the Committee on Corporations, Authorities and Commissions -- reported favorably from said committee, ordered to first and second report, ordered to a third reading, amended and ordered reprinted, retaining its place in the order of third reading AN ACT to amend the public authorities law, in relation to the powers of 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. Subdivision 5 of section 2402 of the public authorities 2 law, as amended by section 1 of chapter 208 of the laws of 2010, is 3 amended to read as follows: 4 (5) "Mortgage". A loan owed to a bank secured by a first lien on a fee 5 simple or leasehold estate in real property located in the state and 6 improved by a residential structure, whether or not insured or guaran- 7 teed by the United States of America or any agency thereof. The term 8 "mortgage" shall also include a loan owed to a bank secured by a second 9 lien on a fee simple or leasehold estate in real property located in the 10 state and improved by a residential structure, whether or not insured or 11 guaranteed by the United States of America or any agency thereof, 12 provided, however, that such second lien: (a) secures a loan purchased 13 by the agency, and (b) is made at the same time as a first lien securing 14 a loan purchased by the agency pursuant to its programs or by a govern- 15 ment sponsored enterprise or is made at the same time as a new housing 16 loan purchased by the agency pursuant to section twenty-four hundred 17 five-c of this part[, provided that, in]. THE TERM "MORTGAGE" SHALL ALSO 18 INCLUDE LOANS MADE BY THE AGENCY AND SECURED BY A SECOND LIEN ON A FEE 19 SIMPLE OR LEASEHOLD ESTATE IN REAL PROPERTY LOCATED IN THE STATE AND 20 IMPROVED BY A RESIDENTIAL STRUCTURE, WHETHER OR NOT INSURED OR GUARAN- 21 TEED BY THE UNITED STATES OF AMERICA OR ANY AGENCY THEREOF, PROVIDED 22 HOWEVER, THAT THE LOAN MADE BY THE AGENCY AND SECURED BY SUCH SECOND EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD09086-02-3 S. 4399--A 2 1 LIEN IS MADE AT THE SAME TIME AS A FIRST LIEN SECURING A MORTGAGE LOAN 2 PURCHASED BY THE AGENCY PURSUANT TO ITS PROGRAMS OR BY A GOVERNMENT 3 SPONSORED ENTERPRISE. IN the case of any second lien PURCHASED OR MADE 4 HEREUNDER, the mortgagor shall be obligated to contribute from his or 5 her own verifiable funds an amount not less than such percentage as the 6 agency shall determine, of the lower of the purchase price or appraised 7 value of the property subject to the first lien. "Real property" as used 8 in this subdivision shall include air rights. 9 For the purposes of this title and of section one hundred ninety and 10 subsection (a) of section one thousand four hundred fifty-six of the tax 11 law, "mortgage" shall include housing loans as defined below. Except for 12 the purposes of subdivision seven of section two thousand four hundred 13 five and subdivision eight of section two thousand four hundred five-b 14 of this part, "mortgage" shall also include a loan owed to a bank by an 15 individual borrower incurred for the purpose of financing the purchase 16 of certificates of stock or other evidence of ownership of an interest 17 in, and a proprietary lease from, a cooperative housing corporation 18 formed for the purpose of the cooperative ownership of residential real 19 estate in the state, secured by an assignment or transfer of the bene- 20 fits of such cooperative ownership, and containing such terms and condi- 21 tions as the agency may approve. 22 S 2. Subdivision 5 of section 2402 of the public authorities law, as 23 amended by section 2 of chapter 208 of the laws of 2010, is amended to 24 read as follows: 25 (5) "Mortgage". A loan owed to a bank secured by a first lien on a fee 26 simple or leasehold estate in real property located in the state and 27 improved by a residential structure, whether or not insured or guaran- 28 teed by the United States of America or any agency thereof. The term 29 "mortgage" shall also include a loan owed to a bank secured by a second 30 lien on a fee simple or leasehold estate in real property located in the 31 state and improved by a residential structure, whether or not insured or 32 guaranteed by the United States of America or any agency thereof, 33 provided, however, that such second lien: (a) secures a loan purchased 34 by the agency, and (b) is made at the same time as a first lien securing 35 a loan purchased by the agency pursuant to its programs or by a govern- 36 ment sponsored enterprise or is made at the same time as a new housing 37 loan purchased by the agency pursuant to section twenty-four hundred 38 five-c of this part[, provided that, in]. THE TERM "MORTGAGE" SHALL ALSO 39 INCLUDE LOANS MADE BY THE AGENCY AND SECURED BY A SECOND LIEN ON A FEE 40 SIMPLE OR LEASEHOLD ESTATE IN REAL PROPERTY LOCATED IN THE STATE AND 41 IMPROVED BY A RESIDENTIAL STRUCTURE, WHETHER OR NOT INSURED OR GUARAN- 42 TEED BY THE UNITED STATES OF AMERICA OR ANY AGENCY THEREOF, PROVIDED 43 HOWEVER, THAT THE LOAN MADE BY THE AGENCY AND SECURED BY SUCH SECOND 44 LIEN IS MADE AT THE SAME TIME AS A FIRST LIEN SECURING A MORTGAGE LOAN 45 PURCHASED BY THE AGENCY PURSUANT TO ITS PROGRAMS OR BY A GOVERNMENT 46 SPONSORED ENTERPRISE. IN the case of any second lien PURCHASED OR MADE 47 HEREUNDER, the mortgagor shall be obligated to contribute from his or 48 her own verifiable funds an amount not less than such percentage as the 49 agency shall determine, of the lower of the purchase price or appraised 50 value of the property subject to the first lien. "Real property" as used 51 in this subdivision shall include air rights. 52 Except for the purposes of subdivision seven of section two thousand 53 four hundred five of this part, "mortgage" shall also include a loan 54 owed to a bank by an individual borrower incurred for the purpose of 55 financing the purchase of certificates of stock or other evidence of 56 ownership of an interest in, and a proprietary lease from, a cooperative S. 4399--A 3 1 housing corporation formed for the purpose of the cooperative ownership 2 of residential real estate in the state, secured by an assignment or 3 transfer of the benefits of such cooperative ownership, and containing 4 such terms and conditions as the agency may approve. 5 S 3. Subdivision 5 of section 2402 of the public authorities law, as 6 amended by chapter 432 of the laws of 2009, is amended to read as 7 follows: 8 (5) "Mortgage". A loan owed to a bank secured by a first lien on a fee 9 simple or leasehold estate in real property located in the state and 10 improved by a residential structure, whether or not insured or guaran- 11 teed by the United States of America or any agency thereof. The term 12 "mortgage" shall also include a loan owed to a bank secured by a second 13 lien on a fee simple or leasehold estate in real property located in the 14 state and improved by a residential structure, whether or not insured or 15 guaranteed by the United States of America or any agency thereof, 16 provided, however, that such second lien: (a) secures a loan purchased 17 by the agency, and (b) is made at the same time as a first lien securing 18 a loan purchased by the agency pursuant to its programs or is made at 19 the same time as a new housing loan purchased by the agency pursuant to 20 section twenty-four hundred five-c of this part[, provided that, in]. 21 THE TERM "MORTGAGE" SHALL ALSO INCLUDE LOANS MADE BY THE AGENCY AND 22 SECURED BY A SECOND LIEN ON A FEE SIMPLE OR LEASEHOLD ESTATE IN REAL 23 PROPERTY LOCATED IN THE STATE AND IMPROVED BY A RESIDENTIAL STRUCTURE, 24 WHETHER OR NOT INSURED OR GUARANTEED BY THE UNITED STATES OF AMERICA OR 25 ANY AGENCY THEREOF, PROVIDED HOWEVER, THAT THE LOAN MADE BY THE AGENCY 26 AND SECURED BY SUCH SECOND LIEN IS MADE AT THE SAME TIME AS A FIRST LIEN 27 SECURING A MORTGAGE LOAN PURCHASED BY THE AGENCY PURSUANT TO ITS 28 PROGRAMS OR BY A GOVERNMENT SPONSORED ENTERPRISE. IN the case of any 29 second lien, the mortgagor shall be obligated to contribute from his or 30 her own verifiable funds an amount not less than such percentage as the 31 agency shall determine, of the lower of the purchase price or appraised 32 value of the property subject to the first lien. "Real property" as used 33 in this subdivision shall include air rights. 34 Except for the purposes of subdivision seven of section two thousand 35 four hundred five of this part, "mortgage" shall also include a loan 36 owed to a bank by an individual borrower incurred for the purpose of 37 financing the purchase of certificates of stock or other evidence of 38 ownership of an interest in, and a proprietary lease from, a cooperative 39 housing corporation formed for the purpose of the cooperative ownership 40 of residential real estate in the state, secured by an assignment or 41 transfer of the benefits of such cooperative ownership, and containing 42 such terms and conditions as the agency may approve. 43 S 4. Subdivision 17 of section 2402 of the public authorities law, as 44 added by chapter 208 of the laws of 2010, is amended to read as follows: 45 (17) "Government sponsored enterprises". Privately owned, publicly 46 chartered entities, AND WHOLLY-OWNED CORPORATE INSTRUMENTALITIES OF THE 47 UNITED STATES WITHIN THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT, 48 CREATED PURSUANT TO 12 USC 1717(A)(2)(A), ALL created by Congress to 49 encourage lending and reduce costs primarily in the housing sector of 50 the economy. 51 S 5. Subdivision 30 of section 2404 of the public authorities law, as 52 renumbered by chapter 229 of the laws of 2007, is renumbered subdivision 53 31 and a new subdivision 30 is added to read as follows: 54 (30) TO MAKE LOANS SECURED BY MORTGAGES SECURED BY A SECOND LIEN ON A 55 FEE SIMPLE OR LEASEHOLD ESTATE IN REAL PROPERTY LOCATED IN THE STATE AND 56 IMPROVED BY A RESIDENTIAL STRUCTURE, WHETHER OR NOT INSURED OR GUARAN- S. 4399--A 4 1 TEED BY THE UNITED STATES OF AMERICA OR ANY AGENCY THEREOF, PROVIDED 2 HOWEVER, THAT THE LOAN MADE BY THE AGENCY AND SECURED BY SUCH SECOND 3 LIEN IS MADE AT THE SAME TIME AS A FIRST LIEN SECURING A MORTGAGE LOAN 4 PURCHASED BY THE AGENCY PURSUANT TO ITS PROGRAMS OR BY A GOVERNMENT 5 SPONSORED ENTERPRISE. 6 S 6. This act shall take effect immediately, provided that the amend- 7 ments to subdivision 5 of section 2402 of the public authorities law 8 made by section one of this act shall be subject to the expiration and 9 reversion of such subdivision pursuant to section 16 of chapter 915 of 10 the laws of 1982, as amended, when upon such date the provisions of 11 section two of this act shall take effect; provided further, that the 12 amendments to subdivision 5 of section 2402 of the public authorities 13 law made by section two of this act shall be subject to the expiration 14 and reversion of such subdivision pursuant to section 4 of chapter 208 15 of the laws of 2010 as amended, when upon such date the provisions of 16 section three of this act shall take effect; provided further, that the 17 amendments to subdivision 17 of section 2402 made by section four of 18 this act shall not affect the repeal of such subdivision and shall be 19 deemed repealed therewith.