SENATORS BRUNO AND FARLEY COMMEND GOVERNOR FOR SIGNING PREDATORY LENDING BILL INTO LAW

Thursday, October 3, 2002

Senate Majority Leader Joseph L. Bruno and Senator Hugh Farley (R-C, Schenectady) today praised Governor Pataki for signing into law legislation that will crack down on predatory lending, a major consumer protection priority for senior citizens in New York State.

"This new law will put an end to unscrupulous lenders who take advantage of senior citizens by using deceptive and high pressure marketing tactics, or charging exorbitantly high interest rates and fees can lead many unsuspecting homeowners into foreclosure," Senator Bruno said. "I commend the Governor for approving this measure and I want to thank Senator Hugh Farley for all his efforts to address this important issue and bring greater peace of mind for millions of seniors citizens across the state."

"Many seniors in New York have a difficult enough time making ends meet on fixed incomes, trying to keep their homes and pay for necessities such as food, heat and prescription medications without being preyed upon by unethical lenders," Senator Farley, Chairman of the Senate Banking Committee, said. "This law will protect consumers in the sub-prime lending market and prevent unscrupulous lenders from preying on seniors. Not only should the Governor be praised for signing this bill, members of the AARP should be applauded for the hard work in advocating for this measure."

This law will close loopholes in state laws by prohibiting practices frequently used by predatory lenders. It will also:
> provide additional disclosures to consumers;
> provide for an affirmative defense in the case of foreclosure;
> require all high cost-home loans to have a legend on the top of the mortgage indicating that it is a high cost-home loan;
> provide enforcement powers to the Attorney General and the state Banking Superintendent.
> allow for a private right of action against the lender or mortgage broker within 6 years of the origination of the loan and require those who violate the law to be liable to the borrower for actual damages and statutory damages.

In addition to approving the predatory lending bill earlier this year, the Senate also passed a Chapter Amendment (S.7840) to address concerns raised regarding the potential impact of predatory lending legislation on the banking industry to ensure that legitimate lenders may continue to offer sub-prime loans to consumers. This amendment was not acted on by the Assembly.

[BIOGRAPHY] [DISTRICT MAP] [PHOTO GALLERY] [LEGISLATION] [CONSTITUENT SERVICES] [YOUR OPINION COUNTS] [GUESTBOOK] [PRIVACY POLICY] [SENATE INSIDER] [CONTACT INFO] [HOME/NEWS]