Prohibits pre-payment penalties for mortgages secured by real property owned in a cooperative form of ownership where over fifty percent of the units are shareholder occupied.
Summary
Bill S01323 amends the general obligations law to prohibit pre-payment penalties for mortgages secured by real property owned in a cooperative form of ownership, specifically when over fifty percent of the units are shareholder-occupied. The bill allows for the unpaid balance of a loan or forbearance to be prepaid at any time without penalty after one year from the loan's initiation. If prepayment occurs before this one-year mark, no penalty may be imposed unless explicitly stated in the loan contract, and it must comply with existing banking laws.
Impact
The passage of this bill would significantly impact homeowners in cooperative housing by providing them with greater flexibility in managing their mortgage payments. It removes the financial burden of pre-payment penalties, thus encouraging homeowners to refinance or pay off their loans early without incurring additional costs. This change aligns state law with consumer-friendly practices and may promote stability in cooperative housing markets.
Sentiment
The general sentiment surrounding Bill S01323 appears to be positive, as it addresses concerns regarding the financial constraints imposed on cooperative homeowners. Stakeholders, including housing advocates and cooperative associations, are likely to support the bill for its potential to enhance homeownership affordability and accessibility.
Contention
There may be some contention regarding the implications of this bill on lenders, who could argue that the removal of pre-payment penalties may affect their revenue models. However, advocates for homeowners emphasize the need for consumer protection and the importance of making housing more affordable, which may overshadow lender concerns in legislative discussions.
Same As
Prohibits pre-payment penalties for mortgages secured by real property owned in a cooperative form of ownership where over fifty percent of the units are shareholder occupied.
Prohibits pre-payment penalties for mortgages secured by real property owned in a cooperative form of ownership where over fifty percent of the units are shareholder occupied.
Prohibits pre-payment penalties for mortgages secured by real property owned in a cooperative form of ownership where over fifty percent of the units are shareholder occupied.
Prohibits pre-payment penalties for mortgages secured by real property owned in a cooperative form of ownership where over fifty percent of the units are shareholder occupied.
Prohibits pre-payment penalties for mortgages secured by real property owned in a cooperative form of ownership where over fifty percent of the units are shareholder occupied.
Limits the provisions related to prepayment of real estate mortgages to those mortgage loans made for real estate containing owner occupied dwelling houses of not more than four dwelling units.