S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  3815

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                            January 29, 2013
                               ___________

Introduced by M. of A. MILLER -- read once and referred to the Committee
  on Banks

AN  ACT  to  amend  the banking law, in relation to the mortgage bill of
  rights pamphlet on residential mortgages

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The  banking law is amended by adding a new section 35 to
read as follows:
  S 35. INFORMATION PAMPHLET FOR RESIDENTIAL MORTGAGE  APPLICANTS.    1.
THE  SUPERINTENDENT  SHALL  DEVELOP  A  PAMPHLET  KNOWN AS "THE MORTGAGE
APPLICANT'S BILL OF RIGHTS" AND POST SUCH PAMPHLET ON  THE  DEPARTMENT'S
WEB  SITE.  SUCH  PAMPHLET  SHALL  BE  POSTED  AND  PRINTED IN THE EIGHT
LANGUAGES WHICH ARE MOST SPOKEN IN THIS STATE. COPIES OF  SUCH  PAMPHLET
SHALL  BE  PROVIDED  TO  ALL  LICENSED LENDERS AND BANKING ORGANIZATIONS
OFFERING RESIDENTIAL MORTGAGE SERVICES. A COPY OF SUCH PAMPHLET SHALL BE
PROVIDED BY LICENSED LENDERS AND BANKING ORGANIZATIONS  TO  EACH  PERSON
BEFORE  SUCH  PERSON  ENTERS INTO AN APPLICATION FOR A LOAN SECURED BY A
MORTGAGE  UPON RESIDENTIAL REAL ESTATE. THE PAMPHLET  PROVIDED  TO  EACH
SUCH  PERSON  SHALL BE PRINTED IN A LANGUAGE WHICH THE PERSON IS CAPABLE
OF READING AND UNDERSTANDING.  FURTHERMORE,  SUCH  LICENSED  LENDER  AND
BANKING  ORGANIZATION  SHALL NOT ACCEPT AN APPLICATION FOR A RESIDENTIAL
MORTGAGE UNTIL THE PERSON OR PERSONS APPLYING FOR A MORTGAGE  HAVE  BEEN
PROVIDED  A  COPY OF THE BOOKLET AND ACKNOWLEDGED RECEIPT OF IT IN WRIT-
ING. EVERY LICENSED LENDER AND BANKING ORGANIZATION SHALL MAINTAIN  SUCH
ACKNOWLEDGEMENT ALONG WITH THE APPLICANT'S MORTGAGE LOAN DOCUMENTS.
  2. THE PAMPHLET AND WEB SITE NOTICE DEVELOPED PURSUANT TO THIS SECTION
SHALL  INCLUDE  THE FOLLOWING, ALONG WITH OTHER INFORMATION ADDED AT THE
DISCRETION OF THE SUPERINTENDENT NOT  OTHERWISE  INCONSISTENT  WITH  THE
INFORMATION SET FORTH IN THE PAMPHLET:
  "BILL OF RIGHTS FOR RESIDENTIAL MORTGAGE APPLICANTS
  AS AN APPLICANT FOR A RESIDENTIAL MORTGAGE YOU HAVE THE RIGHT TO:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02182-01-3
              

A. 3815                             2

  1.  COMPARE  THE  CHARGES OF DIFFERENT MORTGAGE BROKERS AND LENDERS TO
OBTAIN THE BEST LOAN POSSIBLE.
  2.  ASK  YOUR  MORTGAGE  BROKER TO EXPLAIN HIS OR HER RESPONSIBILITIES
WITHIN THE MORTGAGE LENDING PROCESS.
  3. KNOW HOW MUCH THE MORTGAGE BROKER IS COMPENSATED  BY  YOU  AND  THE
LENDER FOR YOUR LOAN.
  4. A CLEAR AND TRUTHFUL EXPLANATION OF THE TERMS AND CONDITIONS OF THE
LOAN.
  5.  KNOW IF THE LOAN BEING OFFERED IS A FIXED OR ADJUSTABLE RATE MORT-
GAGE LOAN, KNOW THE EXACT AMOUNT OF YOUR MONTHLY LOAN PAYMENTS,  INCLUD-
ING ANY PROJECTED ESCROW PAYMENTS, KNOW THE FINAL ANNUAL PERCENTAGE RATE
(APR) AND THE AMOUNT OF REGULAR PAYMENTS AT THE LOAN'S CLOSING.
  6.  ASK  FOR  A GOOD FAITH ESTIMATE OF ALL LOAN AND SETTLEMENT CHARGES
BEFORE YOU AGREE TO THE LOAN AND PAY ANY FEES, SUCH AS LOAN  APPLICATION
FEES,  TITLE SEARCH AND INSURANCE FEES, LENDER'S ATTORNEY FEES, PROPERTY
APPRAISAL CHARGES, INSPECTIONS, RECORDING FEES,  TRANSFER  TAXES,  POINT
AND ORIGINATION FEES, AND ESCROW ACCOUNT BALANCES.
  7. OBTAIN CREDIT COUNSELING BEFORE CLOSING A LOAN.
  8. DECIDE WHETHER OR NOT TO FINANCE ANY PORTION OF THE POINTS OR FEES.
  9. REFUSE TO PURCHASE CREDIT INSURANCE FOR ANY MORTGAGE LOAN.
  10.  HAVE  YOUR  PROPERTY APPRAISED BY AN INDEPENDENT LICENSED PROFES-
SIONAL AND TO RECEIVE A COPY OF THE APPRAISAL.
  11. NOT BE SUBJECT TO DECEPTIVE MARKETING PRACTICES.
  12. ASK FOR THE HUD SETTLEMENT COSTS BOOKLET, "BUYING YOUR HOME".
  13. RECEIVE THE FOLLOWING  DOCUMENTS,  AND  EVERY  DOCUMENT  OTHERWISE
REQUIRED  TO BE GIVEN TO YOU AT CLOSING UNDER FEDERAL AND NEW YORK STATE
LAW:
  A. GOOD FAITH ESTIMATE
  B. TRUTH IN LENDING
  C. HUD-1 STATEMENT.
  14. KNOW WHAT FEES ARE NOT REFUNDABLE IF YOU DECIDE TO CANCEL THE LOAN
AGREEMENT.
  15. RECEIVE IN WRITING  THE  REASON  FOR  THE  DENIAL  OR  CONDITIONAL
APPROVAL OF YOUR LOAN APPLICATION.
  16.  IF  REFINANCING,  YOU  MAY CANCEL A LOAN WITHIN THREE DAYS OF THE
CLOSING  BY  PROVIDING  WRITTEN  NOTIFICATION  OF  CANCELLATION  TO  THE
LICENSED LENDER OR BANKING INSTITUTION.
  17. RECEIVE THE HUD-1 DOCUMENT ONE DAY BEFORE THE CLOSING TAKES PLACE.
  18. HAVE ANY LENDING DISPUTES RESOLVED IN A FAIR AND EQUITABLE MANNER.
  19.  A  CREDIT  DECISION  THAT  IS  NOT  BASED  UPON YOUR RACE, COLOR,
NATIONAL ORIGIN, RELIGION, SEX, FAMILY STATUS, SEXUAL ORIENTATION, DISA-
BILITY OR WHETHER ANY INCOME IS FROM PUBLIC ASSISTANCE.
  20. FILE A COMPLAINT WITH THE DEPARTMENT IF YOU BELIEVE THAT  A  MORT-
GAGE  BROKER OR ANY OTHER ENTITY LICENSED BY THE DEPARTMENT HAS VIOLATED
ANY RULES, REGULATIONS OR LAWS WHICH GOVERN HIS OR HER CONDUCT IN  WORK-
ING WITH YOU TO GET OR PROCESS A MORTGAGE LOAN.
  21.  FILE  A  COMPLAINT WITH THE NEW YORK STATE DEPARTMENT OF STATE IF
YOU BELIEVE THAT A REAL ESTATE BROKER  HAS  VIOLATED  ANY  RULES,  REGU-
LATIONS  OR  LAWS WHICH GOVERN HIS OR HER CONDUCT IN WORKING WITH YOU TO
PURCHASE A HOME."
  S 2. 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.