NYS Legislative Wrap-Up
(UPDATED) Well, despite a flurry of last second activity, the Legislative session ended with a whimper and not a bang and as someone who believes that legislators, like doctors, should first and foremost do no harm that is not necessarily a bad thing. Here is a look at how some of the key legislation played out.
The most problematic legislation is in part Q of this budget bill passed early Saturday. It imposes obligations on mortgage holders of abandoned property. The good news is that there is a carve out for cus that maintain a portion of their mortgages and provide less than three tenths of one percent of mortgages in the state. Obviously there is a lot to parse here but the smaller you are the less you have to worry about. I’ll have more to say about this tomorrow but for those who think you may be impacted take a look.
Six weeks ago, if I was going to bet on one bill that would pass it would have been a bill to authorize ride sharing services (i.e. Uber and Lyft) to operate outside of NYC with the appropriate insurance coverage. In the end, the Senate passed a one house bill (S.4108-d Seward) which includes coverage of “motor vehicle physical damage.” This is crucial to credit unions and other lenders that want to make sure that the value of their car loans is protected. The bottom line is that the status quo, under which Transportation Network Companies (TNC) are subject to regulation within NYC and not authorized outside of the Big Apple remains in place. What impact this development has on the value of NYC medallions remains to be seen. Incidentally, your faithful blogger would have also predicted a Golden State NBA championship and an embittered LeBron James departing Cleveland for LA. He would have been wrong on this one as well.
Legislation that would have expanded the powers of check cashers by, among other things, working with banks or credit unions to provide loans (S.6985-b Savino/A.9634-b Rodriguez) stalled in the closing days in both the Senate and Assembly.
Unfortunately, despite some late movement, two erstwhile credit unions bills to allow credit unions to participate in banking development districts and to allow the State Comptroller to deposit state funds in credit unions did not get done.
Perhaps the bill that is going to have the most direct impact on credit unions is one that passed a few weeks ago. If, as expected, it gets approved by the Governor, it will clarify when a mortgage loan is consummated for purposes of complying with mortgage disclosure requirements.
On that note, it was great to see you all in Saratoga.