Requires the development of a "what mortgage applicants need to know" pamphlet on residential mortgages; provides such pamphlet shall be posted and printed in the 6 most common non-English languages spoken by individuals with limited English proficiency in New York state.
STATE OF NEW YORK
________________________________________________________________________
5597--B
Cal. No. 125
2023-2024 Regular Sessions
IN SENATE
March 8, 2023
___________
Introduced by Sens. COMRIE, JACKSON -- read twice and ordered printed,
and when printed to be committed to the Committee on Banks -- recom-
mitted to the Committee on Banks in accordance with Senate Rule 6,
sec. 8 -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee -- reported favorably from
said committee, ordered to first and second report, ordered to a third
reading, amended and ordered reprinted, retaining its place in the
order of third reading
AN ACT to amend the banking law, in relation to what mortgage applicants
need to know pamphlet on residential mortgages
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The banking law is amended by adding a new section 35 to
2 read as follows:
3 § 35. Information pamphlet for residential mortgage applicants. 1.
4 The superintendent shall develop a pamphlet known as "what mortgage
5 applicants need to know" and post such pamphlet on the department's web
6 site. Such pamphlet shall be posted and printed in the six most common
7 non-English languages spoken by individuals with limited-English profi-
8 ciency in New York state as based on the most recent census. Copies of
9 such pamphlet shall be provided to all licensed lenders and banking
10 organizations offering residential mortgage services. A copy of such
11 pamphlet shall be provided by licensed lenders, mortgage bankers and
12 other banking organizations to each person applying for a loan secured
13 by a mortgage upon residential real estate in accordance with the
14 timing requirements under 12 CFR § 1026.19(e)(1)(iii). A licensed lend-
15 er, mortgage banker or other banking organization may provide the appli-
16 cant with the pamphlet via electronic communications, including but not
17 limited to, electronic mail or a hyperlink to the pamphlet posted on the
18 department's web site.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04048-05-4
S. 5597--B 2
1 2. The pamphlet and web site notice developed pursuant to this section
2 shall include the following, along with other information added at the
3 discretion of the superintendent not otherwise inconsistent with the
4 information set forth in the pamphlet:
5 ""WHAT MORTGAGE APPLICANTS NEED TO KNOW"
6 As an applicant for a residential mortgage you have the right to:
7 1. Compare and negotiate the charges of different mortgage brokers and
8 lenders to obtain the best loan possible.
9 2. Ask your mortgage broker to explain such person's responsibilities
10 within the mortgage lending process.
11 3. Know how much the mortgage broker is compensated by you and the
12 lender for your loan.
13 4. A clear and truthful explanation of the terms and conditions of the
14 loan.
15 5. Know if the loan being offered is a fixed or adjustable rate mort-
16 gage loan, whether the loan can be transferred or refinanced, know the
17 exact amount of your monthly loan payments, including any projected
18 escrow payments, know the final annual percentage rate (APR) and the
19 amount of regular payments at the loan's closing.
20 6. Ask for loan estimate detailing all loan and settlement charges
21 before you agree to the loan and pay any fees, including without limita-
22 tion loan application fees, title search and insurance fees, lender's
23 attorney fees, property appraisal charges, inspections, recording fees,
24 late payment fees, transfer taxes, point and origination fees, escrow
25 account balances, which services a loan applicant can shop for and which
26 they cannot, and you are entitled to receive such estimate within three
27 business days of applying for a loan.
28 7. Obtain credit counseling before closing a loan.
29 8. Decide whether or not to finance any portion of the points or fees.
30 9. Refuse to purchase credit insurance for any mortgage loan.
31 10. Have your property appraised by an independent licensed profes-
32 sional and to receive a copy of the appraisal.
33 11. Not be subject to deceptive marketing practices.
34 12. Ask for the consumer financial protection bureau's booklet "Your
35 home loan toolkit".
36 13. Receive the following documents, and every document otherwise
37 required to be given to you at closing under federal and New York state
38 law:
39 a. Loan estimate,
40 b. Closing disclosure.
41 14. Know what deposits and fees are not refundable if you decide to
42 cancel the loan agreement.
43 15. Receive in writing the reason for the denial or conditional
44 approval of your loan application.
45 16. If refinancing, you may cancel a loan within three days of the
46 closing by providing written notification of cancellation to the
47 licensed lender or banking institution.
48 17. Receive the closing disclosure three days before the closing takes
49 place.
50 18. Have any lending disputes resolved in a fair and equitable manner.
51 19. A credit decision that is not based upon your race, color,
52 national origin, religion, sex, family status, sexual orientation, disa-
53 bility or whether any income is from public assistance.
54 20. File a complaint with the department or the Consumer Financial
55 Protection Bureau if you believe that a mortgage broker or any other
56 entity licensed by the department or the Consumer Financial Protection
S. 5597--B 3
1 Bureau has violated any rules, regulations or laws which govern such
2 person's conduct in working with you to get or process a mortgage loan.
3 21. File a complaint with the New York state department of state or
4 the Consumer Financial Protection Bureau if you believe that a real
5 estate broker has violated any rules, regulations or laws which govern
6 such person's conduct in working with you to purchase a home."
7 § 2. This act shall take effect on the one hundred eightieth day after
8 it shall have become a law. Effective immediately, the addition, amend-
9 ment and/or repeal of any rule or regulation necessary for the implemen-
10 tation of this act on its effective date are authorized to be made and
11 completed on or before such effective date.
