New York and Rhode Island Legislative Update

New York and Rhode Island Legislative Update

The New York legislature recently extended the expiration of certain provisions relating to foreclosures, effective June 19, 2014.  The Rhode Island legislature recently amended its mortgage lending licensing laws (the “laws”), effective June 16, 2014.

 

NEW YORK ASSEMBLY BILL 9354

 

The following foreclosure related requirements will now remain in effect until June 30, 2019 (previously June 30, 2014):

 

  • The requirement to conduct a settlement conference with the borrower prior to foreclosure; and
  • Provisions of the real property actions and proceedings law requiring notice of foreclosure to be sent to the borrower.

 

RHODE ISLAND HOUSE BILL 7648/SENATE BILL 2787

 

A license that is granted is subject to suspension or revocation for failure to comply with any applicable provision of the laws or regulations promulgated under the laws.

 

If an applicant does not complete an application, the application is now considered withdrawn and not denied.

 

The license or branch certificate must contain any information that the Director of Division of Banking (the “Director”) or the Director’s designee will require, including the type of activity authorized.  In his or her discretion, the Director or designee may substitute an electronic record as the confirmation of a license status in substitution for a license or branch certificate.

 

Any licensee who fails to appoint a resident attorney and files the power of attorney in the Director’s office will be subject to suspension or revocation of the license.

 

Whenever a licensee wishes to change his or her location to a street address not on the licensee’s license, he or she must notify the Director of the change and pay a $50 fee (previously $250).

 

At the time of application for change of name, the licensee must pay to and for the use of the state the sum of $50 (previously $150) as a processing fee.

 

The Director or the Director’s designee will make an examination of the affairs, business, office, and records of each licensee and branch location as often as necessary (previously 18 months).  The timeframe is based upon all relevant factors including the volume of activity within the state.  The Department will provide a report to the legislature after July 1, 2017, but no later than December 31, 2017 regarding the timing of examinations conducted and will make recommendations regarding the sufficiency of conducting examinations based on these factors versus on a stated periodic basis.