STATE OF NEW YORK ________________________________________________________________________ 2229 2023-2024 Regular Sessions IN SENATE January 19, 2023 ___________ Introduced by Sen. SANDERS -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend the banking law, the executive law and the veterans' services law, in relation to certain notices and services upon appli- cation for a mortgage guaranteed under the "Servicemen's Readjustment Act of 1944"; and providing for the repeal of certain provisions upon expiration thereof The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 6-p of the banking law, as added by a chapter of 2 the laws of 2022 amending the banking law, the executive law and the 3 veterans' services law relating to certain notices and services upon 4 application for a mortgage guaranteed under the "Servicemen's Readjust- 5 ment Act of 1944", as proposed in legislative bills numbers S. 8670-A 6 and A. 9493-A, is REPEALED and a new section 6-p is added to read as 7 follows: 8 § 6-p. Loan counseling for mortgages guaranteed by the Servicemen's 9 Readjustment Act of 1944. Every mortgage lending institution and mort- 10 gage banker which originates loans secured by real property used for 11 residential purposes located in this state which are to be guaranteed 12 under the Servicemen's Readjustment Act of 1944 shall provide a separate 13 disclosure form with each application stating that a veteran seeking a 14 housing loan under chapter 37 of title 38 of the United States Code has 15 been offered loan counseling services. Such loan counseling services 16 shall be provided by the department of veterans' services under section 17 twenty-nine-a of the veterans' services law upon request of an appli- 18 cant. The disclosure form required by this section shall be signed by 19 each applicant and shall include information detailing how to access 20 such counseling services. 21 § 2. Section 354-f of the executive law, as added by a chapter of the 22 laws of 2022 amending the banking law, the executive law and the veter- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD04151-01-3
S. 2229 2 1 ans' services law relating to certain notices and services upon applica- 2 tion for a mortgage guaranteed under the "Servicemen's Readjustment Act 3 of 1944", as proposed in legislative bills numbers S. 8670-A and A. 4 9493-A, is amended to read as follows: 5 § 354-f. Loan counseling for mortgages guaranteed by the Servicemen's 6 Readjustment Act of 1944. Upon the request of any veteran, the division 7 shall provide counseling and assistance to applicants for a mortgage 8 loan guaranteed by the Servicemen's Readjustment Act of 1944. Such 9 service shall be provided either directly or through a contract with a 10 not-for-profit entity which has a Commercial and Government Entity 11 (CAGE) code assigned by the federal System for Award Management and 12 which is not owned by, affiliated with or operated by a mortgage compa- 13 ny. Counselors shall be [licensed in this state as either a real estate 14 broker or a mortgage broker] certified by the United States department 15 of housing and urban development under Part 214 of Title 24 of the Code 16 of Federal Regulations. Loan counseling and assistance shall include a 17 review of the terms and restrictions of the loan[, information deter- 18 mined by the state director to be appropriate for a veteran seeking a 19 housing loan under chapter 37 of title 38 of the United States Code,] 20 and any other information which may be required under federal law, rule 21 or regulation. The division may promulgate regulations necessary to 22 prevent any potential conflicts of interest between counselors and mort- 23 gage companies to ensure that any counseling and assistance provided 24 under the provisions of this section shall be made in the best interest 25 of the veteran seeking such mortgage loan. 26 § 3. Section 29-a of the veterans' services law, as added by a chapter 27 of the laws of 2022 amending the banking law, the executive law and the 28 veterans' services law relating to certain notices and services upon 29 application for a mortgage guaranteed under the "Servicemen's Readjust- 30 ment Act of 1944", as proposed in legislative bills numbers S. 8670-A 31 and A. 9493-A, is amended to read as follows: 32 § 29-a. Loan counseling for mortgages guaranteed by the Servicemen's 33 Readjustment Act of 1944. Upon the request of any veteran, the [divi- 34 sion] department shall provide counseling and assistance to applicants 35 for a mortgage loan guaranteed by the Servicemen's Readjustment Act of 36 1944. Such service shall be provided either directly or through a 37 contract with a not-for-profit entity which has a Commercial and Govern- 38 ment Entity (CAGE) code assigned by the federal System for Award Manage- 39 ment and which is not owned by, affiliated with or operated by a mort- 40 gage company. Counselors shall be [licensed in this state as either a 41 real estate broker or a mortgage broker] certified by the United States 42 department of housing and urban development under Part 214 of Title 24 43 of the Code of Federal Regulations. Loan counseling and assistance shall 44 include a review of the terms and restrictions of the loan[, information 45 determined by the state director to be appropriate for a veteran seeking 46 a housing loan under chapter 37 of title 38 of the United States Code,] 47 and any other information which may be required under federal law, rule 48 or regulation. The department may promulgate regulations necessary to 49 prevent any potential conflicts of interest between counselors and mort- 50 gage companies to ensure that any counseling and assistance provided 51 under the provisions of this section shall be made in the best interest 52 of the veteran seeking such mortgage loan. 53 § 4. This act shall take effect on the same date and in the same 54 manner as a chapter of the laws of 2022 amending the banking law, the 55 executive law and the veterans' services law relating to certain notices 56 and services upon application for a mortgage guaranteed under the
S. 2229 3 1 "Servicemen's Readjustment Act of 1944", as proposed in legislative 2 bills numbers S. 8670-A and A. 9493-A, takes effect; provided that 3 section one of this act shall take effect on the same date and in the 4 same manner as section 2 of part PP of chapter 56 of the laws of 2022, 5 takes effect; and provided, further that the amendments to section 354-f 6 of the executive law made by section two of this act shall not affect 7 the repeal of such section and shall expire and be deemed repealed ther- 8 ewith.