New York State Assembly

 
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A09686 Summary:

A09686 Actions:

A09686 Committee Votes:

Committee:BANKS   Chair:Hunter      
DATE:05/14/2024AYE/NAY:25/1  Action: Favorable refer to committee Rules        
Hunter
Aye
Curran
Aye
Weprin
Aye
Mikulin
Aye
Jean-Pierre
Aye
Smullen
Aye
Seawright
Excused
Fitzpatrick
Excused
Dickens
Excused
Lemondes
Aye
Vanel
Aye
DiPietro
Nay
Taylor
Aye
Jensen
Aye
Stern
Aye
Chang
Aye
Sayegh
Aye
Flood
Aye
Burke
Aye
Buttenschon
Aye
Anderson
Aye
Mitaynes
Aye
Septimo
Aye
Tapia
Aye
De Los Santos
Aye
Cunningham
Aye
Lee
Excused
Raga
Aye
Burdick
Aye
Dais
Aye

Committee:RULES   Chair:Pretlow      
DATE:05/20/2024AYE/NAY:27/0  Action: Favorable         
Heastie
Excused
Barclay
Aye
Weinstein
Aye
Hawley
Aye
Pretlow
Aye
Giglio
Aye
Cook
Aye
Blankenbush
Aye
Glick
Aye
Norris
Aye
Aubry
Aye
Ra
Aye
Dinowitz
Aye
Brabenec
Aye
Colton
Aye
Palmesano
Aye
Magnarelli
Aye
Reilly
Aye
Paulin
Aye
Peoples-Stokes
Aye
Benedetto
Aye
Lavine
Excused
Lupardo
Aye
Zebrowski
Aye
Thiele
Excused
Braunstein
Aye
Dickens
Excused
Davila
Aye
Hyndman
Aye
Rozic
Aye
Bronson
Aye

A09686 Floor Votes:

A09686 Memo:

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



 
BILL NUMBER: A9686
 
SPONSOR: Weprin

 
TITLE OF BILL:
 
An act to amend the banking law, in relation to what mortgage applicants
need to know pamphlet on residential mortgages
 
 
PURPOSE OR GENERAL IDEA OF BILL:
 
This bill would require the creation and publication of the "what mort-
gage applicants need to know" pamphlet. The pamphlet shall be provided
to consumers by mortgage lenders and bankers, and shall be published in
the six most spoken languages in New York State.
 
 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1. Adding a new section 35 to the banking law. The superinten-
dent of the Department of Financial Services shall develop a pamphlet
known as "what mortgage applicants need to know " and post such pamphlet
on the department's website. Such pamphlet shall be posted and printed
in the six languages which are most spoken in New York State.
 
 
JUSTIFICATION:
 
This legislation ensures the public's awareness of the "what mortgage
applicants need to know:" This legislation will serve as another tool to
assist New Yorkers with homebuying, which can be confusing on the first
time or for those planning to buy, and have not done so in a long time.
Regardless, having access to this information will inevitably assist
anyone looking to buy a home.
 
We know New York is a diverse place. As such, this bill requires mort-
gage pamphlets be translated in multiple languages. Having this informa-
tion only in English would not be fair to those that speak English as a
second-language. Therefore, this bill requires such pamphlet to be in
the six most prevalent languages in New York.
 
It is important to have access to this information before closing, as
interest rates and market comparisons may help influence the agreed.
upon cost and save New Yorkers money over the long-run. In addition,
lenders may not be as forthcoming as consumers may believe in the inter-
est of writing mortgages, even when rates are less than ideal.
 
 
PRIOR LEGISLATIVE HISTORY:
 
Assembly Bill 3322-B of 2017-18.
 
2021-2022: S5512
 
 
FISCAL IMPLICATIONS:
 
To be determined.
 
 
EFFECTIVE DATE:
This act shall take effect-on the one hundred eightieth day after it
shall have become a law; provided that, effective immediately, any and
all actions necessary to implement the provisions of this act on its
effective date are authorized and directed to be completed on or before
such date.

A09686 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          9686
 
                   IN ASSEMBLY
 
                                      April 3, 2024
                                       ___________
 
        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 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.
    19    2. The pamphlet and web site notice developed pursuant to this section
    20  shall  include  the following, along with other information added at the
    21  discretion of the superintendent not  otherwise  inconsistent  with  the
    22  information set forth in the pamphlet:
    23    ""WHAT MORTGAGE APPLICANTS NEED TO KNOW"
    24    As an applicant for a residential mortgage you have the right to:
    25    1. Compare and negotiate the charges of different mortgage brokers and
    26  lenders to obtain the best loan possible.
    27    2.  Ask your mortgage broker to explain such person's responsibilities
    28  within the mortgage lending process.
    29    3. Know how much the mortgage broker is compensated  by  you  and  the
    30  lender for your loan.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04048-06-4
        A. 9686                             2
 
     1    4. A clear and truthful explanation of the terms and conditions of the
     2  loan.
     3    5.  Know if the loan being offered is a fixed or adjustable rate mort-
     4  gage loan, whether the loan can be transferred or refinanced,  know  the
     5  exact  amount  of  your  monthly  loan payments, including any projected
     6  escrow payments, know the final annual percentage  rate  (APR)  and  the
     7  amount of regular payments at the loan's closing.
     8    6.  Ask  for  loan  estimate detailing all loan and settlement charges
     9  before you agree to the loan and pay any fees, including without limita-
    10  tion loan application fees, title search and  insurance  fees,  lender's
    11  attorney  fees, property appraisal charges, inspections, recording fees,
    12  late payment fees, transfer taxes, point and  origination  fees,  escrow
    13  account balances, which services a loan applicant can shop for and which
    14  they  cannot, and you are entitled to receive such estimate within three
    15  business days of applying for a loan.
    16    7. Obtain credit counseling before closing a loan.
    17    8. Decide whether or not to finance any portion of the points or fees.
    18    9. Refuse to purchase credit insurance for any mortgage loan.
    19    10. Have your property appraised by an  independent  licensed  profes-
    20  sional and to receive a copy of the appraisal.
    21    11. Not be subject to deceptive marketing practices.
    22    12.  Ask  for the consumer financial protection bureau's booklet "Your
    23  home loan toolkit".
    24    13. Receive the following  documents,  and  every  document  otherwise
    25  required  to be given to you at closing under federal and New York state
    26  law:
    27    a. Loan estimate,
    28    b. Closing disclosure.
    29    14. Know what deposits and fees are not refundable if  you  decide  to
    30  cancel the loan agreement.
    31    15.  Receive  in  writing  the  reason  for  the denial or conditional
    32  approval of your loan application.
    33    16. If refinancing, you may cancel a loan within  three  days  of  the
    34  closing  by  providing  written  notification  of  cancellation  to  the
    35  licensed lender or banking institution.
    36    17. Receive the closing disclosure three days before the closing takes
    37  place.
    38    18. Have any lending disputes resolved in a fair and equitable manner.
    39    19. A credit decision  that  is  not  based  upon  your  race,  color,
    40  national origin, religion, sex, family status, sexual orientation, disa-
    41  bility or whether any income is from public assistance.
    42    20.  File  a  complaint  with the department or the Consumer Financial
    43  Protection Bureau if you believe that a mortgage  broker  or  any  other
    44  entity  licensed  by the department or the Consumer Financial Protection
    45  Bureau has violated any rules, regulations or  laws  which  govern  such
    46  person's conduct in working with you to get or process a mortgage loan.
    47    21.  File  a  complaint with the New York state department of state or
    48  the Consumer Financial Protection Bureau if  you  believe  that  a  real
    49  estate  broker  has violated any rules, regulations or laws which govern
    50  such person's conduct in working with you to purchase a home."
    51    § 2. This act shall take effect on the one hundred eightieth day after
    52  it shall have become a law.  Effective immediately, the addition, amend-
    53  ment and/or repeal of any rule or regulation necessary for the implemen-
    54  tation of this act on its effective date are authorized to be  made  and
    55  completed on or before such effective date.

A09686 LFIN:

 
NO LFIN

A09686 Chamber Video/Transcript: