Directs the superintendent of financial services to conduct a study examining the feasibility of 40- and 50-year mortgages in the state of New York; requires such superintendent to submit a report of findings.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A10728
SPONSOR: Chang TITLE OF BILL:
An act in relation to directing the superintendent of financial services
to conduct a study examining the feasibility of 40- and 50-year mort-
gages in the state of New York
PURPOSE OR GENERAL IDEA OF BILL:
To direct the superintendent of financial services to conduct a compre-
hensive study on the feasibility, benefits, risks, and potential impact
of allowing forty-year and fifty-year fixed-rate mortgages in New York
State.
SUMMARY OF PROVISIONS:
Section 1 Directs the superintendent of financial services to conduct a
study examining the feasibility of offering forty-year and fifty-year
fixed-rate mortgages in the state of New York.
Section 2 Authorizes the superintendent of financial services to request
data and information from state officers, departments, divisions, or
bureaus necessary to complete the study.
Section 3 Requires the superintendent of financial services to submit a
report of findings to the Governor, the Speaker of the Assembly, the
Temporary President of the Senate, the minority leaders of both houses,
and relevant finance, housing, and banking committees within one year
and six months of the effective date.
Section 4 Provides that the act shall take effect immediately.
JUSTIFICATION:
New York continues to face a severe housing affordability crisis, with
rising home prices and elevated interest rates placing homeownership
increasingly out of reach for many families. Traditional thirty-year
mortgage structures may not provide sufficient flexibility for prospec-
tive homebuyers struggling to meet monthly payment requirements in high-
cost markets.
Longer-term mortgage options, such as forty-year and fifty-year fixed-
rate loans, could potentially lower monthly payments and improve afford-
ability for first-time homebuyers and working families seeking to enter
the housing market.
By gathering detailed data and analysis, the state will be better posi-
tioned to determine whether such financing options could responsibly
expand access to homeownership.
PRIOR LEGISLATIVE HISTORY:
N/A
FISCAL IMPLICATIONS:
Minimal. Any costs associated with the study would be absorbed within
existing resources of the Department of Financial Services.
EFFECTIVE DATE:
This act shall take effect immediately.
