S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5372
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 8, 2017
                                ___________
 
 Introduced  by  M.  of  A. MOSLEY, COLTON, ZEBROWSKI, ROSENTHAL, JAFFEE,
   COOK, WEPRIN -- Multi-Sponsored by -- M. of  A.  FARRELL,  GUNTHER  --
   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:
   §  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:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD09566-01-7

 A. 5372                             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 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."
   § 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.