New York State Assembly

 
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A00424 Summary:

A00424 Actions:

A00424 Committee Votes:

Committee:BANKS   Chair:Vanel      
DATE:01/14/2025AYE/NAY:28/0  Action: Favorable refer to committee Rules        
Vanel
Aye
Bologna
Aye
Weprin
Aye
Mikulin
Aye
Taylor
Aye
Smullen
Excused
Stern
Aye
Fitzpatrick
Aye
Sayegh
Excused
Lemondes
Aye
Burke
Aye
DiPietro
Aye
Anderson
Aye
Chang
Aye
Mitaynes
Aye
Chludzinski
Aye
Septimo
Aye
Molitor
Aye
Tapia
Aye
De Los Santos
Aye
Cunningham
Aye
Lee
Aye
Raga
Aye
Burdick
Aye
Dais
Aye
Jackson
Aye
Torres
Aye
Hooks
Aye
Wieder
Aye
Wright
Aye
Yeger
Excused

Committee:RULES   Chair:Heastie      
DATE:01/28/2025AYE/NAY:31/0  Action: Favorable         
Heastie
Aye
Barclay
Aye
Pretlow
Aye
Hawley
Aye
Cook
Aye
Blankenbush
Aye
Glick
Aye
Ra
Aye
Dinowitz
Aye
Brabenec
Aye
Colton
Aye
Palmesano
Aye
Magnarelli
Aye
Reilly
Aye
Paulin
Aye
Smith
Aye
Peoples-Stokes
Aye
Jensen
Aye
Benedetto
Aye
Lavine
Aye
Lupardo
Aye
Braunstein
Aye
Davila
Aye
Hyndman
Aye
Rozic
Aye
Bronson
Aye
Hevesi
Aye
Hunter
Aye
Taylor
Aye
Cruz
Aye
Vanel
Aye

A00424 Floor Votes:

A00424 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
 submitted in accordance with Assembly Rule III, Sec 1(f)



 
BILL NUMBER: A424
 
SPONSOR: Weprin

 
TITLE OF BILL:
 
An act to amend the banking law, in relation to notice of the posting of
the what mortgage applicants need to know pamphlet on residential mort-
gages and modification of such pamphlet
 
 
PURPOSE OR GENERAL IDEA OF BILL:
 
The purpose of this bill is to effectuate chapter 566 of the laws of
2024 (approval memo 34), which requires the Department of Financial
Services to create a new "what mortgage applicants need to know"
pamphlet and post such pamphlet online.
 
 
SUMMARY OF PROVISIONS:

Section One: Amends section 35 of the banking law to require the Depart-
ment of Financial Services to create a pamphlet called "What Mortgage
Applicants Need to Know" and post it on the department's website. The
chapter amendment changes require the Department to notify mortgage
lenders and bankers when such pamphlet is posted on the website, and
when any updates are made to the pamphlet.
 
Section Two: Effective date.
 
 
JUSTIFICATION:
 
This chapter makes technical amendments to effectuate chapter 566 of the
laws of 2024, ensuring that mortgage lenders and applicants are made
aware when there are updates to the "what mortgage applicants need to
know" pamphlet.
 
 
PRIOR LEGISLATIVE HISTORY:
 
This bill is a chapter amendment to chapter 566 of the laws of 2024.
 
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
 
None to the state.
 
 
EFFECTIVE DATE:
This act shall take effect on the same date and in the same manner as a
chapter 566 of the laws of 2024 amending the banking law relating to
what mortgage applicants need to know pamphlet on residential mortgages,
as proposed in legislative bills numbers S. 5597 and A.9686, takes
effect.

A00424 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                           424
 
                               2025-2026 Regular Sessions
 
                   IN ASSEMBLY
 
                                       (Prefiled)
 
                                     January 8, 2025
                                       ___________
 
        Introduced by M. of A. WEPRIN -- read once and referred to the Committee
          on Banks
 
        AN ACT to amend the banking law, in relation to notice of the posting of
          the  what  mortgage  applicants  need  to know pamphlet on residential
          mortgages and modification of such pamphlet

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section 1. Section 35 of the banking law, as added by a chapter of the
     2  laws  of  2024 amending the banking law relating to what mortgage appli-
     3  cants need to know pamphlet on residential  mortgages,  as  proposed  in
     4  legislative  bills  numbers S. 5597-B and A. 9686, is amended to read as
     5  follows:
     6    § 35. Information pamphlet for residential mortgage  applicants.    1.
     7  The  superintendent  shall  develop  a  pamphlet known as "what mortgage
     8  applicants need to know" and post such pamphlet on the department's  web
     9  site.  Such  pamphlet shall be posted and printed in the six most common
    10  non-English languages spoken by individuals with limited-English  profi-
    11  ciency  in New York state as based on the most recent census. [Copies of
    12  such pamphlet shall be provided to  all  licensed  lenders  and  banking
    13  organizations  offering  residential  mortgage services.] The department
    14  will notify mortgage bankers and banking organizations when the pamphlet
    15  is posted on the department's web site  and  when  any  changes  to  the
    16  pamphlet  are  made.  A  copy  of  such  pamphlet  shall  be provided by
    17  [licensed lenders,] mortgage bankers and other banking organizations  to
    18  each  person applying for a loan secured by a mortgage  upon residential
    19  real estate in accordance with the timing requirements under  12  CFR  §
    20  1026.19(e)(1)(iii).    A  [licensed  lender,] mortgage banker or [other]
    21  banking organization may provide the applicant  with  the  pamphlet  via
    22  electronic communications, including but not limited to, electronic mail
    23  or a hyperlink to the pamphlet posted on the department's web site.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02908-01-5
        A. 424                              2
 
     1    2.  The  pamphlet  [and  web  site  notice] developed pursuant to this
     2  section shall [include] be substantially in the  following  form,  along
     3  with  other  information  added  at the discretion of the superintendent
     4  [not otherwise inconsistent  with  the  information  set  forth  in  the
     5  pamphlet]:
     6    ""WHAT MORTGAGE APPLICANTS NEED TO KNOW"
     7    As an applicant for a residential mortgage you have the right to:
     8    1. Compare and negotiate the charges of different mortgage brokers and
     9  lenders to obtain the best loan possible.
    10    2.  Ask your mortgage broker to explain such person's responsibilities
    11  within the mortgage lending process.
    12    3. Know how much the mortgage broker is compensated  by  you  and  the
    13  lender for your loan.
    14    4. A clear and truthful explanation of the terms and conditions of the
    15  loan.
    16    5.  Know if the loan being offered is a fixed or adjustable rate mort-
    17  gage loan, whether the loan can be transferred or refinanced,  know  the
    18  exact  amount  of  your  monthly  loan payments, including any projected
    19  escrow payments, know the final annual percentage  rate  (APR)  and  the
    20  amount of regular payments at the loan's closing.
    21    6. Ask for [loan] an estimate detailing all loan and settlement charg-
    22  es  before  you  agree  to  the loan and pay any fees, including without
    23  limitation loan application fees, title search and insurance fees, lend-
    24  er's attorney fees, property appraisal charges,  inspections,  recording
    25  fees,  late  payment  fees,  transfer taxes, point and origination fees,
    26  escrow account balances, which services a loan applicant  can  shop  for
    27  and  which  they  cannot,  and you are entitled to receive such estimate
    28  within three business days of applying for a loan.
    29    7. Obtain credit counseling before closing a loan.
    30    8. Decide whether or not to finance any portion of the points or fees.
    31    9. Refuse to purchase credit insurance for any mortgage loan.
    32    10. Have your property appraised by an  independent  licensed  profes-
    33  sional and to receive a copy of the appraisal.
    34    11. Not be subject to deceptive marketing practices.
    35    12.  Ask  for the consumer financial protection bureau's booklet "Your
    36  home loan toolkit".
    37    13. Receive the following  documents,  and  every  document  otherwise
    38  required  to be given to you at closing under federal and New York state
    39  law:
    40    a. Loan estimate[,] or good faith estimate depending on the  loan  you
    41  are applying for.
    42    b. Closing disclosure.
    43    14.  Know  what  deposits and fees are not refundable if you decide to
    44  cancel the loan agreement.
    45    15. Receive in writing  the  reason  for  the  denial  or  conditional
    46  approval of your loan application.
    47    16.  If  refinancing,  you  may cancel a loan within three days of the
    48  closing  by  providing  written  notification  of  cancellation  to  the
    49  licensed lender or banking institution.
    50    17. Receive the closing disclosure three days before the closing takes
    51  place.
    52    18. Have any lending disputes resolved in a fair and equitable manner.
    53    19.  A  credit  decision  that  is  not  based  upon your race, color,
    54  national origin, religion, sex, family status, sexual orientation, disa-
    55  bility or whether any income is from public assistance.
        A. 424                              3
 
     1    20. File a complaint with the department  or  the  Consumer  Financial
     2  Protection  Bureau  if  you  believe that a mortgage broker or any other
     3  entity licensed by the department or the Consumer  Financial  Protection
     4  Bureau  has  violated  any  rules, regulations or laws which govern such
     5  person's conduct in working with you to get or process a mortgage loan.
     6    21.  File  a  complaint with the New York state department of state or
     7  the Consumer Financial Protection Bureau if  you  believe  that  a  real
     8  estate  broker  has violated any rules, regulations or laws which govern
     9  such person's conduct in working with you to purchase a home."
    10    3. The superintendent may modify  the  language  of  the  pamphlet  to
    11  ensure that the pamphlet is accurate and consistent with applicable law.
    12    §  2.  This  act  shall  take  effect on the same date and in the same
    13  manner as a chapter of the laws of 2024 amending the banking law  relat-
    14  ing  to  what  mortgage  applicants need to know pamphlet on residential
    15  mortgages, as proposed in legislative bills numbers  S.  5597-B  and  A.
    16  9686, takes effect.

A00424 LFIN:

 
NO LFIN

A00424 Chamber Video/Transcript: