At the urging of the New York Credit Union Association (NYCUA), the New York State Assembly passed legislation that clarifies when a mortgage is “consummated.”
The New York State Senate passed its version of the bill last month, and the legislation will now head to Gov. Andrew Cuomo’s office to be signed into law (The Point June 7).
The assembly bill was sponsored by Assemblywoman Annette Robinson (D-Metropolitan) who chairs the Committee on Banks.
“I would like to thank Assemblywoman Annette Robinson, who has long been supportive of credit union issues, for her leadership on this important piece of legislation,” said NYCUA President/CEO William J. Mellin.
The NYCUA has strongly advocated for the legislation, which is essential to the Truth In Lending Act--Real Estate Settlement Procedures Act Integrated Disclosure rule. Under the regulations, closing disclosures must be received by a homebuyer at least 3 business days before a mortgage loan is consummated, but there is currently no statutory definition of consummation.
The legislation clarifies that for purposes of compliance with federal law, consummation occurs when a mortgage applicant executes a promissory note and mortgage.