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Bill

A 5014

Enacts the Home Equity Fraud Act to control improper activities by home improvement contractors and finance companies

2025 Regular Session Introduced by MaryJane Shimsky and 2 co-sponsors

New York bill establishes legal protections and enforcement mechanisms against fraudulent home improvement contractors and predatory home equity lenders targeting vulnerable homeowners.

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Bill Summary · A 5014

Legislative bill overview

A.5014 establishes the Home Equity Fraud Act to regulate and prevent fraudulent practices by home improvement contractors and finance companies that target homeowners' equity. The bill creates legal mechanisms to hold these entities accountable for deceptive lending, inflated pricing, predatory financing terms, and other exploitative schemes tied to home equity.

Why is this important

Home equity fraud disproportionately affects vulnerable populations including seniors, low-income homeowners, and those with poor credit. Victims often lose substantial wealth, face foreclosure, or accumulate unsustainable debt. Establishing clear legal protections and enforcement mechanisms can reduce financial exploitation and preserve homeownership stability.

Potential points of contention

  • Contractor burden vs. consumer protection: The bill's specific compliance requirements could increase operational costs for legitimate contractors, raising questions about how rules distinguish between small operators and repeat offenders
  • Financing company restrictions: Limitations on terms or practices may reduce credit availability for homeowners who currently access home improvement financing through these channels, potentially pushing them toward less-regulated alternatives
  • Enforcement and regulatory scope: Clarity is needed on which agency enforces the law, what investigative resources exist, and how penalties are structured to ensure effectiveness without overreach

Compiled from official sources — confirm details with the bill’s official record.

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