New York S 6114: Enacts the Home Equity Fraud Act to control improper activities by home improvement contractors and finance companies

Bill Text

Bill Search and Legislative Information | New York State Assembly 

• 

• 

• 

• 

• 

• 

• 

• 

 Skip to main content 

 New York State Assembly

 Speaker Carl E. Heastie

 --> 
 --> 

 --> 

• 
 Assembly Members 

• 
 Legislative Info 

• 
 Public Hearings 

• 
 Speaker's Press 

• 
 Assembly Reports 

• 
 Committees & More 

• Bill Search Home
• Laws
• Legislative Calendar
• Public Hearing Schedule
• Assembly Calendars
• Assembly Committee Agenda 

 Javascript must be enabled to properly view this page. 

 Bill No.: 

• Summary 
• Actions 
• Committee&nbspVotes 
• Floor&nbspVotes 
• Memo 
• Text 
• LFIN 
• Chamber&nbspVideo/Transcript 
S06114 Summary:

BILL NOS06114 

&nbsp

SAME ASSAME AS A05014

&nbsp

SPONSORPARKER

&nbsp

COSPNSR

&nbsp

MLTSPNSR

&nbsp

Amd §§595-a, 347 & 592-a, Bank L; add §254-e, RP L; add §§1316 & 1317, RPAP L; amd §771, add §771-c, Gen Bus
L; add §5-338, Gen Ob L

&nbsp

Enacts the "Home Equity Fraud Act" to control improper activities by home improvement contractors and finance companies; prohibits mortgage brokers or agents from acting as home improvement contractors; provides additional protections for mortgagors and homeowners.

Go to top S06114 Actions:

BILL NOS06114 

&nbsp

03/05/2025REFERRED TO BANKS

01/07/2026REFERRED TO BANKS

Go to topS06114 Committee&nbspVotes:

Go to topS06114 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS06114 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 6114

 2025-2026 Regular Sessions

 IN SENATE

 March 5, 2025
 ___________

 Introduced by Sen. PARKER -- read twice and ordered printed, and when
 printed to be committed to the Committee on Banks

 AN ACT to amend the banking law, the real property law, the real proper-
 ty actions and proceedings law, the general business law and the
 general obligations law, in relation to enacting the "Home Equity
 Fraud Act"

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. Short title. This act shall be known and may be cited as
 2 the "Home Equity Fraud Act".
 3 § 2. Legislative findings. The legislature hereby finds that many
 4 senior citizens and minority homeowners in New York have been targeted
 5 by unethical home improvement contractors, mortgage companies, mortgage
 6 brokers and finance companies who induce these homeowners into entering
 7 into high cost high interest rate mortgage agreements which the homeown-
 8 er is often unable to afford with the intent of foreclosing on the home
 9 and stripping the equity.
 10 The legislature further finds that in order to entice people into
 11 entering into these agreements they are promised refinancing of primary
 12 mortgages, consolidation of loans and outstanding bills and are given
 13 cash but often are not told or do not understand that they are securing
 14 the loan with a mortgage lien on their home which will lead to foreclo-
 15 sure in the event of default. Often these loans are documented with
 16 false and misleading documentation provided by brokers which could easi-
 17 ly be determined to be false if checked by the lender. Despite prohibi-
 18 tions contained in federal law many of these loans are based on equity
 19 in the home and not on the borrower's ability to pay. Since many of
 20 these homeowners live on a fixed income, they are unable to make the
 21 required payments and end up losing their homes. This practice appears
 22 to be targeted in neighborhoods with a high concentration of senior and
 23 minority residents.

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD08861-01-5

 S. 6114 2

 1 The legislature further finds that it is in the best interest of the
 2 citizens of this state that these unethical practices should be prohib-
 3 ited by law and that unscrupulous individuals should be denied the abil-
 4 ity to utilize the courts of this state to perpetrate these abuses upon
 5 senior citizens and minority residents of this state and does therefore
 6 enact this Home Equity Fraud Act in order to prevent predatory lending.
 7 § 3. Subdivision 1 of section 595-a of the banking law is amended by
 8 adding four new paragraphs (i), (j), (k) and (l) to read as follows:
 9 (i) Engaging in any activity, transaction or course of business in
 10 connection with a home improvement contract as described in section
 11 seven hundred seventy of the general business law other than with regard
 12 to providing services directly connected with the making of a mortgage
 13 loan pursuant to the provisions of this article, and only if such
 14 services and the fees paid or to be paid in connection therewith are
 15 fully disclosed and agreed to in writing by all parties to the trans-
 16 action.
 17 (j) Charging or paying, either directly or indirectly, a fee in exces