Banking Department Issues Industry Letter Detailing Components of New Subprime Legislation
August 27, 2008
New York, NY: The New York State Banking Department today issued an industry letter providing an overview of the various components of the new subprime legislation, much of which goes into effect Sept. 1, 2008. The letter was distributed to mortgage bankers and brokers, mortgage-related industry groups, and servicers across the state,
On Aug. 5, 2008 Governor David A. Paterson signed into law a critical subprime lending reform bill to address the ongoing mortgage crisis in New York State. Chapter 472 of the Laws of 2008, which was part of the Governor’s legislative program, targets the subprime lending crisis in two ways – by providing assistance to homeowners currently at risk of losing their homes and by establishing further protections in the law to mitigate the possibility of a similar crisis in the future.
“We want to ensure that our institutions are fully prepared for the important changes that this new legislation brings; changes that will be beneficial to consumers, lenders and investors,” said Richard H. Neiman, Superintendent of Banks for New York State. “We believe we have achieved the crucial balance between providing expanded consumer protection, through measures such as the pre-foreclosure notice and stronger underwriting standards, with the need to maintain the availability of credit.”
The industry letter is available on the Banking Department Web site, http://www.banking.state.ny.us/il080827.htm.
The New York State Banking Department is the regulator for all state-chartered banking institutions, virtually all of the United States offices of international banking institutions, all of the State’s mortgage brokers, mortgage bankers, check cashers, money transmitters and budget planners. The aggregate assets of the depository institutions supervised by the Banking Department are more than $1.8 trillion.In addition to regulating banking institutions, the Banking Department is active in informing and educating all New Yorkers on banking matters. To contact the Banking Department, please call 1-877-BANK-NYS or visit our Web site at www.banking.state.ny.us.