Governor Andrew Cuomo (D-NY) has signed into law S00982 (2017), which amends N.Y. Banking Law § 2(30) as follows (new text is underlined):
“Consummation of a mortgage loan. The term ‘consummation of a mortgage loan’ means, for purposes of the act of congress entitled Truth in Lending Act and the regulations thereunder and the Real Estate Settlement Procedures Act of 1974, as amended, and the regulations thereunder, when the applicant for the mortgage loan executes the promissory note and mortgage including by electronic signature, in accordance with applicable federal and state laws, rules, and regulations.” (A copy of the bill can be found at: http://nyassembly.gov/leg/?default_fld=&leg_video=&bn=S00982&term=2017&Summary=Y&Actions=Y&Text=Y)
This amendment is in addition to amendments made to this section of law on November 28, 2016 to change “consummation” from the date of commitment to closing, for purposes of providing the TILA-RESPA Integrated Disclosures (see 2016 Sess. Law News of N.Y. Ch. 491). The purpose of this new amendment is to clarify that signing the promissory note and mortgage includes electronic signings.
This law is effective immediately. We have reviewed our system and processes and have determined that no changes are necessary.