SUBJECT:

PURPOSE:

Chapter 472 of the Laws of 2008, based upon the New York State Assembly's Responsible Lending Act, was enacted to assist New York State homeowners facing foreclosure. This hearing will evaluate the implementation of this new law and its impact to date.

The Assembly Banks Committee oversees the implementation and administration of programs within the banking industry. The Oversight, Analysis and Investigation Committee investigates and analyzes whether state laws and programs are implemented efficiently, effectively and in compliance with legislative intent. The Subcommittee on Regulated Mortgage Lenders oversees mortgage lending programs. This hearing will also examine the implementation and effectiveness of the Halt Abusive Lending Transactions (HALT) Task Force program, which was enacted in 2007 to address the subprime and foreclosure crisis in New York.

Finally, this hearing will address the effect on New York State chartered banks and other financial institutions of the federal Emergency Economic Stabilization Act of 2008, as well as the effect of other changes to the federal statutory and regulatory framework that have been implemented over the last several months.

Persons wishing to present pertinent testimony to the Committees at the above hearing should complete and return the enclosed reply form as soon as possible. It is important that the reply form be fully completed and returned so that persons may be notified in the event of emergency postponement or cancellation.

Oral testimony will be limited to 10 minute durations. In preparing the order of witnesses, the Committees will attempt to accommodate individual requests to speak at particular times in view of special circumstances. These requests should be made on the attached reply form or communicated to Committee staff as early as possible. In the absence of a request, witnesses will be scheduled in the order in which reply forms are postmarked.

Ten copies of any prepared testimony should be submitted at the hearing registration desk. The Committees would appreciate advance receipt of prepared statements.

In order to further publicize these hearings, please inform interested parties and organizations of the Committees' interest in hearing testimony from all sources.

In order to meet the needs of those who may have a disability, the Assembly, in accordance with its policy of non-discrimination on the basis of disability, as well as the 1990 Americans with Disabilities Act (ADA), has made its facilities and services available to all individuals with disabilities. For individuals with disabilities, accommodations will be provided, upon reasonable request, to afford such individuals access and admission to Assembly facilities and activities.

SELECTED ISSUES TO WHICH WITNESSES MAY DIRECT THEIR TESTIMONY:

1. Has the Banking Department promulgated rules and regulations to effect the changes in Chapter 472 of the Laws of 2008?

2. Describe the impact of Chapter 472 of the Laws of 2008?

3. What modifications, if any, should be made to this law?

4. How has the availability of credit been affected by this law?

5. How is the State Banking Department implementing the new law?

6. Is there any evidence yet that the provisions in Chapter 472 to criminalize abusive practices are working?

7. What other legislative actions could be taken to provide additional protection to borrowers from predatory lenders?

PUBLIC HEARING REPLY FORM

Persons wishing to present testimony at the public hearing on Banking Department Oversight and Analysis are requested to complete this reply form as soon as possible and mail it to:

Alessandra J. Payne
Committee Assistant
Assembly Committee on Banks
Room 520 - Capitol
Albany, New York 12248
E-mail: paynea@assembly.state.ny.us
Phone: (518) 455-4928
Fax: (518) 455-5182

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