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.
