STATE OF NEW YORK ________________________________________________________________________ 2124 2023-2024 Regular Sessions IN ASSEMBLY January 23, 2023 ___________ Introduced by M. of A. JEAN-PIERRE -- read once and referred to the Committee on Banks AN ACT to amend the banking law, in relation to penalties for certain violations committed by mortgage bankers and mortgage brokers The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraph (a) of subdivision 1 of section 595 of the bank- 2 ing law, as amended by chapter 291 of the laws of 2014, is amended to 3 read as follows: 4 (a) Through a course of conduct, the licensee or registrant has 5 violated any provisions of this article, or article fifteen of the exec- 6 utive law committed in his or her capacity as a mortgage banker or mort- 7 gage broker, or any rule or regulation promulgated by the superintendent 8 of financial services under and within the authority of this article or 9 of any other law, rule or regulation of this state or the federal 10 government; 11 § 2. Paragraphs (g) and (h) of subdivision 1 of section 595-a of the 12 banking law, paragraph (g) as amended and paragraph (h) as added by 13 chapter 308 of the laws of 2006, are amended and a new paragraph (i) is 14 added to read as follows: 15 (g) Violation of section six-j of this chapter; [and] 16 (h) Making a mortgage loan, or indirectly or directly providing for 17 the making of a mortgage loan, to an equity purchaser, as defined in 18 section two hundred sixty-five-a of the real property law, if the mort- 19 gage banker, mortgage broker or exempt organization had knowledge that 20 the equity purchaser was not complying with the provisions of section 21 two hundred sixty-five-a of the real property law with respect to such 22 transaction[.]; and 23 (i) Violation of article fifteen of the executive law committed in his 24 or her capacity as a mortgage banker or mortgage broker. 25 § 3. This act shall take effect immediately. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD02934-01-3