New York Senate Bill S04004 Latest Draft

   
  STATE OF NEW YORK ________________________________________________________________________ 4004 2025-2026 Regular Sessions  IN SENATE January 31, 2025 ___________ Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Judiciary AN ACT to amend the general obligations law, in relation to increases in mortgage escrow account requirements The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The general obligations law is amended by adding a new 2 section 5-603 to read as follows: 3 § 5-603. Increases in deposits in escrow with mortgage investing 4 institutions. Any mortgage investing institution that maintains an 5 escrow account pursuant to any agreement executed in connection with a 6 mortgage on any real property located in this state shall give at least 7 ten days written notice prior to requiring payment of any increase in 8 the amount of escrow if the dollar amount of such increase is more than 9 five percent of the dollar amount of the total monthly payment (which 10 includes principal, interest, and all escrow amounts) for the month 11 prior to the month for which the increase is effective. No service 12 charge shall be imposed for the giving of such notice. For the purposes 13 of this section, "mortgage investing institution" shall mean any banking 14 organization, as defined in section two of the banking law, or any other 15 entity engaged in the business of offering mortgage financing to the 16 public or investing in mortgages. 17 § 2. This act shall take effect on the ninetieth day after it shall 18 have become a law. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD07140-01-5