S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2665
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 24, 2023
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed 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.
                                                            LBD04418-01-3
 S. 2665                             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 SUCH DEPARTMENT 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.  Effective immediately, the addition, amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation  of  this act on its effective date are authorized to be made and
 completed on or before such effective date.