S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5597--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               March 8, 2023
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Banks  --  recommitted  to
   the  Committee  on  Banks  in accordance with Senate Rule 6, sec. 8 --
   committee discharged, bill amended, ordered reprinted as  amended  and
   recommitted to said committee

 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:
 
   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  "WHAT  MORTGAGE
 APPLICANTS  NEED TO KNOW" AND POST SUCH PAMPHLET ON THE DEPARTMENT'S WEB
 SITE. SUCH PAMPHLET SHALL BE POSTED AND PRINTED IN THE SIX  MOST  COMMON
 NON-ENGLISH  LANGUAGES SPOKEN BY INDIVIDUALS WITH LIMITED-ENGLISH PROFI-
 CIENCY IN NEW YORK STATE AS BASED ON THE MOST RECENT CENSUS.  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, MORTGAGE BANKERS AND
 OTHER BANKING ORGANIZATIONS TO EACH PERSON  BEFORE  SUCH  PERSON  ENTERS
 INTO  AN  APPLICATION FOR A LOAN SECURED BY A MORTGAGE  UPON RESIDENTIAL
 REAL ESTATE. SHOULD SUCH APPLICANT APPLY  FOR  A  MORTGAGE  ONLINE,  THE
 LICENSED  LENDER,  MORTGAGE  BANKER  OR OTHER BANKING ORGANIZATION SHALL
 PROVIDE THE APPLICANT WITH THE PAMPHLET VIA  ELECTRONIC  COMMUNICATIONS,
 INCLUDING  BUT  NOT  LIMITED  TO,  ELECTRONIC MAIL OR A HYPERLINK TO THE
 PAMPHLET POSTED ON THE DEPARTMENT'S WEB SITE.
   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:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04048-02-4
              

 S. 5597--A                          2
 
   "WHAT MORTGAGE APPLICANTS NEED TO KNOW
   AS AN APPLICANT FOR A RESIDENTIAL MORTGAGE YOU HAVE THE RIGHT TO:
   1. COMPARE AND NEGOTIATE 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, WHETHER THE LOAN CAN BE TRANSFERRED OR REFINANCED,  KNOW  THE
 EXACT  AMOUNT  OF  YOUR  MONTHLY  LOAN PAYMENTS, INCLUDING 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, INCLUDING WITHOUT LIMITA-
 TION LOAN APPLICATION FEES, TITLE SEARCH AND  INSURANCE  FEES,  LENDER'S
 ATTORNEY  FEES, PROPERTY APPRAISAL CHARGES, INSPECTIONS, RECORDING FEES,
 LATE PAYMENT FEES, TRANSFER TAXES, POINT AND  ORIGINATION  FEES,  ESCROW
 ACCOUNT BALANCES, WHICH SERVICES A LOAN APPLICANT CAN SHOP FOR AND WHICH
 THEY  CANNOT, AND YOU ARE ENTITLED TO RECEIVE SUCH ESTIMATE WITHIN THREE
 BUSINESS DAYS OF APPLYING FOR A LOAN.
   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  DEPOSITS AND 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  OR  THE  CONSUMER  FINANCIAL
 PROTECTION  BUREAU  IF  YOU  BELIEVE THAT A MORTGAGE BROKER OR ANY OTHER
 ENTITY LICENSED BY THE DEPARTMENT OR THE CONSUMER  FINANCIAL  PROTECTION
 BUREAU  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  OR
 THE  CONSUMER  FINANCIAL  PROTECTION  BUREAU  IF YOU BELIEVE THAT A REAL
 S. 5597--A                          3
 
 ESTATE BROKER HAS VIOLATED ANY RULES, REGULATIONS OR LAWS  WHICH  GOVERN
 HIS OR HER CONDUCT IN WORKING WITH YOU TO PURCHASE A HOME."
   § 2. This act shall take effect on the one hundred eightieth 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.

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5597--B
     Cal. No. 125
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               March 8, 2023
                                ___________
 
 Introduced  by  Sens. COMRIE, JACKSON -- read twice and ordered printed,
   and when printed to be committed to the Committee on Banks  --  recom-
   mitted  to  the  Committee  on Banks in accordance with Senate Rule 6,
   sec. 8 -- committee discharged, bill  amended,  ordered  reprinted  as
   amended  and  recommitted to said committee -- reported favorably from
   said committee, ordered to first and second report, ordered to a third
   reading, amended and ordered reprinted, retaining  its  place  in  the
   order of third reading
 
 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:
 
   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  "WHAT  MORTGAGE
 APPLICANTS  NEED TO KNOW" AND POST SUCH PAMPHLET ON THE DEPARTMENT'S WEB
 SITE. SUCH PAMPHLET SHALL BE POSTED AND PRINTED IN THE SIX  MOST  COMMON
 NON-ENGLISH  LANGUAGES SPOKEN BY INDIVIDUALS WITH LIMITED-ENGLISH PROFI-
 CIENCY IN NEW YORK STATE AS BASED ON THE MOST RECENT CENSUS.  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, MORTGAGE BANKERS AND
 OTHER BANKING ORGANIZATIONS TO EACH PERSON APPLYING FOR A  LOAN  SECURED
 BY  A  MORTGAGE    UPON  RESIDENTIAL  REAL ESTATE IN ACCORDANCE WITH THE
 TIMING REQUIREMENTS UNDER 12 CFR § 1026.19(E)(1)(III).  A LICENSED LEND-
 ER, MORTGAGE BANKER OR OTHER BANKING ORGANIZATION MAY PROVIDE THE APPLI-
 CANT WITH THE PAMPHLET VIA ELECTRONIC COMMUNICATIONS, INCLUDING BUT  NOT
 LIMITED TO, ELECTRONIC MAIL OR A HYPERLINK TO THE PAMPHLET POSTED ON THE
 DEPARTMENT'S WEB SITE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04048-05-4
              

 S. 5597--B                          2
 
   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:
   ""WHAT MORTGAGE APPLICANTS NEED TO KNOW"
   AS AN APPLICANT FOR A RESIDENTIAL MORTGAGE YOU HAVE THE RIGHT TO:
   1. COMPARE AND NEGOTIATE THE CHARGES OF DIFFERENT MORTGAGE BROKERS AND
 LENDERS TO OBTAIN THE BEST LOAN POSSIBLE.
   2.  ASK YOUR MORTGAGE BROKER TO EXPLAIN SUCH PERSON'S 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, WHETHER THE LOAN CAN BE TRANSFERRED OR REFINANCED,  KNOW  THE
 EXACT  AMOUNT  OF  YOUR  MONTHLY  LOAN PAYMENTS, INCLUDING 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  LOAN  ESTIMATE DETAILING ALL LOAN AND SETTLEMENT CHARGES
 BEFORE YOU AGREE TO THE LOAN AND PAY ANY FEES, INCLUDING WITHOUT LIMITA-
 TION LOAN APPLICATION FEES, TITLE SEARCH AND  INSURANCE  FEES,  LENDER'S
 ATTORNEY  FEES, PROPERTY APPRAISAL CHARGES, INSPECTIONS, RECORDING FEES,
 LATE PAYMENT FEES, TRANSFER TAXES, POINT AND  ORIGINATION  FEES,  ESCROW
 ACCOUNT BALANCES, WHICH SERVICES A LOAN APPLICANT CAN SHOP FOR AND WHICH
 THEY  CANNOT, AND YOU ARE ENTITLED TO RECEIVE SUCH ESTIMATE WITHIN THREE
 BUSINESS DAYS OF APPLYING FOR A LOAN.
   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 CONSUMER FINANCIAL PROTECTION BUREAU'S BOOKLET "YOUR
 HOME LOAN TOOLKIT".
   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. LOAN ESTIMATE,
   B. CLOSING DISCLOSURE.
   14. KNOW WHAT DEPOSITS AND 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 CLOSING DISCLOSURE THREE DAYS 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 OR THE CONSUMER FINANCIAL
 PROTECTION BUREAU IF YOU BELIEVE THAT A MORTGAGE  BROKER  OR  ANY  OTHER
 ENTITY  LICENSED  BY THE DEPARTMENT OR THE CONSUMER FINANCIAL PROTECTION
 S. 5597--B                          3
 
 BUREAU HAS VIOLATED ANY RULES, REGULATIONS OR  LAWS  WHICH  GOVERN  SUCH
 PERSON'S CONDUCT IN WORKING WITH YOU TO GET OR PROCESS A MORTGAGE LOAN.
   21.  FILE  A  COMPLAINT WITH THE NEW YORK STATE DEPARTMENT OF STATE OR
 THE CONSUMER FINANCIAL PROTECTION BUREAU IF  YOU  BELIEVE  THAT  A  REAL
 ESTATE  BROKER  HAS VIOLATED ANY RULES, REGULATIONS OR LAWS WHICH GOVERN
 SUCH PERSON'S CONDUCT IN WORKING WITH YOU TO PURCHASE A HOME."
   § 2. This act shall take effect on the one hundred eightieth 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.