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

                                  2493

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 16, 2015
                               ___________

Introduced  by  M.  of  A. MOSLEY, COLTON, ZEBROWSKI, ROSENTHAL, JAFFEE,
  MARKEY, COOK, WEPRIN --  Multi-Sponsored  by  --  M.  of  A.  FARRELL,
  GUNTHER,  HEASTIE,  SALADINO, SCARBOROUGH -- read once and referred to
  the Committee on Banks

AN ACT to amend the banking law, in relation to directing licensed mort-
  gage bankers and authorized mortgage loan originators to provide mort-
  gage applicants with a 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
INTERNET  WEBSITE.  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
PROPERTY. 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 WRITING. EVERY LICENSED
LENDER AND BANKING  ORGANIZATION  SHALL  MAINTAIN  SUCH  ACKNOWLEDGEMENT
ALONG WITH THE APPLICANT'S MORTGAGE LOAN DOCUMENTS.
  2.  THE PAMPHLET AND WEBSITE 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:
  1. COMPARE THE CHARGES OF DIFFERENT MORTGAGE BROKERS  AND  LENDERS  TO
OBTAIN THE BEST LOAN POSSIBLE.

              

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00381-02-5

A. 2493                             2

  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 NEW YORK STATE DEPARTMENT OF FINANCIAL
SERVICES IF YOU BELIEVE THAT A  MORTGAGE  BROKER  OR  ANY  OTHER  ENTITY
LICENSED BY THE DEPARTMENT OF FINANCIAL SERVICES HAS VIOLATED ANY RULES,
REGULATIONS  OR LAWS WHICH GOVERN HIS OR HER CONDUCT IN WORKING 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 LAW WHICH GOVERNS HIS OR HER CONDUCT IN WORKING WITH  YOU  TO
PURCHASE A HOME."
  S 2. This act shall take effect on the one hundred twentieth 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.