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A06247 Text:

                STATE OF NEW YORK
                               2021-2022 Regular Sessions
                   IN ASSEMBLY
                                     March 10, 2021
        Introduced  by  M. of A. PEOPLES-STOKES -- read once and referred to the
          Committee on Banks --  committee  discharged,  bill  amended,  ordered
          reprinted as amended and recommitted to said committee
        AN  ACT  to  amend the banking law, in relation to the assessment of the
          record of performance of mortgage bankers in helping to meet the cred-
          it needs of local communities
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.   The banking law is amended by adding a new section 28-bb
     2  to read as follows:
     3    § 28-bb. Credit needs of local communities; mortgage bankers. 1.  When
     4  taking any action on an application made by a mortgage  banker  licensed
     5  pursuant to section five hundred ninety-one of this chapter for a change
     6  in  control under section five hundred ninety-four-b of this chapter, or
     7  on any other application or notice to which the superintendent of finan-
     8  cial services shall by rule or regulation make applicable the provisions
     9  of this section, the superintendent shall take into account, among other
    10  factors, an assessment, in writing, of the record of performance of  the
    11  mortgage banker in helping to meet the credit needs of its entire commu-
    12  nity,  including  low  and moderate income neighborhoods, and consistent
    13  with safe and sound operation of the mortgage  banker.  Such  assessment
    14  and any written communications from the department of financial services
    15  to a mortgage banker relating to such assessment shall be made available
    16  to  the  public  upon  request,  provided that nothing contained in this
    17  subdivision shall be deemed to alter, amend or affect the provisions  of
    18  subdivision  ten  of section thirty-six of this article.  In making such
    19  assessment of a mortgage banker, the  superintendent  shall  review  all
    20  reports  and  documents filed by the mortgage banker pursuant to section
    21  five hundred ninety-seven of this chapter. In addition, the  superinten-
    22  dent  shall consider the following factors in assessing a mortgage bank-
    23  er's record of  performance,  and  include  in  its  written  assessment
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 6247--A                          2
     1  required  by  this  section  the  record of performance of such mortgage
     2  banker as to each of the following factors:
     3    (a)  Activities  conducted  by the mortgage banker to ascertain credit
     4  needs of its community, including the extent of  the  mortgage  banker's
     5  efforts  to  communicate  with  members  of  its community regarding the
     6  services being provided by the mortgage banker;
     7    (b) The extent of the mortgage banker's marketing and special programs
     8  to make members of the community aware of the services  offered  by  the
     9  mortgage banker;
    10    (c)  The  extent  of  the mortgage banker's participation in community
    11  outreach,  community  development  or  redevelopment,  and   educational
    12  programs;
    13    (d)  The  extent  of  participation  by the mortgage banker's board of
    14  directors, advisory committee, managing members or executive  management
    15  or equivalent body or person, in formulating the mortgage banker's poli-
    16  cies  and reviewing its performance with respect to the purposes of this
    17  section;
    18    (e) Any practices intended to  discourage  application  for  types  of
    19  credit offered by the mortgage banker;
    20    (f) The geographic distribution of the mortgage banker's credit exten-
    21  sions, credit applications, and credit denials;
    22    (g)  Evidence  of  prohibited  discriminatory  or other illegal credit
    23  practices;
    24    (h) The mortgage banker's record of opening and  closing  offices  and
    25  providing services at offices;
    26    (i)  The  mortgage  banker's  participation in governmentally-insured,
    27  guaranteed or subsidized loan programs for housing;
    28    (j) The mortgage banker's ability to  meet  various  community  credit
    29  needs  based  on its financial condition, size, legal impediments, local
    30  economic condition and other factors; and
    31    (k) Other factors that, in the judgment of the superintendent, reason-
    32  ably bear upon the extent to which a mortgage banker is helping to  meet
    33  the credit needs of its entire community.
    34    2.  In assessing the record of performance of a mortgage banker pursu-
    35  ant to the provisions of subdivision one of  this  section,  the  super-
    36  intendent  may, where he or she deems it appropriate, provide for public
    37  hearings when an objection  to  the  mortgage  banker's  application  or
    38  notice has been submitted.
    39    3.  An  assessment  of a mortgage banker's record of performance under
    40  subdivision one of this section may be the basis for denying an applica-
    41  tion under the provisions of this section.
    42    4. Notwithstanding any other provision of this chapter or other law to
    43  the contrary, the term mortgage banker when used in this  section  shall
    44  mean  and  include  mortgage  bankers  licensed pursuant to section five
    45  hundred ninety-one of this chapter that originate a  minimum  number  of
    46  loans  annually,  such number to be set by regulation promulgated by the
    47  superintendent.
    48    5. The superintendent is hereby authorized and empowered to promulgate
    49  rules and regulations  effectuating  the  provisions  of  this  section,
    50  including  any  rules  and  regulations providing that the assessment of
    51  mortgage bankers shall be made on a graduated numerical basis.
    52    6. If any clause, sentence, paragraph, subdivision  or  part  of  this
    53  section  or the application thereof to any person, firm, or corporation,
    54  or circumstance shall be adjudged by any court of competent jurisdiction
    55  to be invalid or  unconstitutional,  such  judgment  shall  not  affect,
    56  impair or invalidate the remainder thereof, but shall be confined (i) in

        A. 6247--A                          3
     1  its  operation  to the clause, sentence, paragraph, subdivision, or part
     2  of this section or (ii) in its application to the person, firm or corpo-
     3  ration, or circumstance, directly involved in the controversy  in  which
     4  such judgment shall have been rendered.
     5    §  2. This act shall take effect one year after it shall have become a
     6  law. Effective immediately, the addition, amendment and/or repeal of any
     7  rule or regulation necessary for the implementation of this act  on  its
     8  effective date are authorized to be made and completed on or before such
     9  effective date.
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