Bill Text: NY S06693 | 2015-2016 | General Assembly | Introduced

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Bill Title: Relates to mortgage guaranty insurance; removes requirement that mortgage guaranty insurers restrict their coverage, net of applicable reinsurance, to twenty-five percent of the total indebtedness to an insured.

Spectrum: Bipartisan Bill

Status: (Engrossed - Dead) 2016-06-17 - referred to insurance [S06693 Detail]

Download: New_York-2015-S06693-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          6693
                    IN SENATE
                                    February 5, 2016
                                       ___________
        Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
          printed to be committed to the Committee on Insurance
        AN ACT to amend the insurance law,  in  relation  to  mortgage  guaranty
          insurance
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Subsection (c) of section 6503 of  the  insurance  law,  as
     2  amended  by  chapter  661  of  the  laws  of 1994, is amended to read as
     3  follows:
     4    (c) A mortgage insurer providing coverage on loans secured by a  first
     5  lien on real estate [shall limit its coverage net of applicable reinsur-
     6  ance  to  a maximum of twenty-five percent of the entire indebtedness to
     7  the insured, or in lieu thereof, a mortgage insurer] may  elect  to  pay
     8  the  entire indebtedness to the insured and acquire title to the author-
     9  ized real estate security. A  mortgage  insurer  providing  coverage  on
    10  loans  secured by a junior lien on real estate [shall limit its coverage
    11  net of applicable reinsurance to a maximum of twenty-five percent of the
    12  combined indebtedness of all existing mortgage loan amounts at the  time
    13  the  loan is made secured by all liens or charges on the real estate, or
    14  in lieu thereof, a mortgage insurer] may elect to insure a portfolio  of
    15  loans secured by instruments constituting a junior lien on real estate[,
    16  provided  that the total amount at risk in any one pool shall not at any
    17  time exceed twenty percent of  the  original  principal  mortgage  loans
    18  insured].
    19    § 2. This act shall take effect immediately.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13959-01-6