New York Legislative Update
Proctor Loan Protector’s Compliance Team is actively tracking two significant pieces of proposed legislation in the New York legislature:
- New York AB4424/SB4696 would place restrictions on flood insurance required by mortgagees. Specifically, the bills prohibit mortgagees from requiring the purchase of flood insurance that exceeds the unpaid balance of the loan or includes contents coverage. Additionally, the bills require written notice to the mortgagor of the need to purchase or pay for flood insurance and that insurance purchased on their behalf may not provide the same protections as that which could be purchased by the mortgagor on their own. The bill is currently in committee in both chambers.
- The second bill pending before the legislature is referred to as the “It’s Your Data Act.” AB3586/HB4021 seeks to establish New York’s consumer data protections in a similar vein to California’s Consumer Privacy Act of 2018 (CCPA). Key provisions of the bill include a private right of action for consumers who feel a company has violated their privacy. Similar to the CCPA, covered businesses are required to disclose information on why data is being collected, how it is used, and whether and under what circumstances it may be disclosed. Going beyond the CCPA, this bill requires that companies provide the data retention period to consumers. Covered businesses and their service providers will also be subject to security requirements to protect unauthorized use or disclosure of data.
Proctor will continue to track the movement of this legislation and provide updates as needed.