S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    767
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 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
 S. 767                              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.
 S. 767                              3
 
   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.