S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    424
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 Introduced by M. of A. WEPRIN -- read once and referred to the Committee
   on Banks
 
 AN ACT to amend the banking law, in relation to notice of the posting of
   the  what  mortgage  applicants  need  to know pamphlet on residential
   mortgages and modification of such pamphlet

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 35 of the banking law, as added by a chapter of the
 laws  of  2024 amending the banking law relating to what mortgage appli-
 cants need to know pamphlet on residential  mortgages,  as  proposed  in
 legislative  bills  numbers S. 5597-B and A. 9686, is amended 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.] THE DEPARTMENT
 WILL NOTIFY MORTGAGE BANKERS AND BANKING ORGANIZATIONS WHEN THE PAMPHLET
 IS POSTED ON THE DEPARTMENT'S WEB SITE  AND  WHEN  ANY  CHANGES  TO  THE
 PAMPHLET  ARE  MADE.  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  lender,] mortgage banker or [other]
 banking organization may 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD02908-01-5
 A. 424                              2
 
   2.  The  pamphlet  [and  web  site  notice] developed pursuant to this
 section shall [include] BE SUBSTANTIALLY IN the  following  FORM,  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] AN estimate detailing all loan and settlement charg-
 es  before  you  agree  to  the loan and pay any fees, including without
 limitation loan application fees, title search and insurance fees, lend-
 er'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[,] OR GOOD FAITH ESTIMATE DEPENDING ON THE  LOAN  YOU
 ARE APPLYING FOR.
   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.
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   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 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."
   3. THE SUPERINTENDENT MAY MODIFY  THE  LANGUAGE  OF  THE  PAMPHLET  TO
 ENSURE THAT THE PAMPHLET IS ACCURATE AND CONSISTENT WITH APPLICABLE LAW.
   §  2.  This  act  shall  take  effect on the same date and in the same
 manner as a chapter of the laws of 2024 amending the banking law  relat-
 ing  to  what  mortgage  applicants need to know pamphlet on residential
 mortgages, as proposed in legislative bills numbers  S.  5597-B  and  A.
 9686, takes effect.