A00997 Summary:

BILL NOA00997
 
SAME ASSAME AS S06339
 
SPONSORMiller
 
COSPNSR
 
MLTSPNSR
 
Add S35, Bank L
 
Requires the development of a mortgage bill of rights pamphlet on residential mortgages and provides such pamphlet shall be posted and printed in the 8 most popularly spoken languages in the state.
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A00997 Actions:

BILL NOA00997
 
01/08/2015referred to banks
01/06/2016referred to banks
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A00997 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A997
 
SPONSOR: Miller
  TITLE OF BILL: An act to amend the banking law, in relation to the mortgage bill of rights pamphlet on residential mortgages   PURPOSE OR GENERAL IDEA OF BILL: Requires information to consumers of the mortgage bill of rights that are provided by mortgage lenders and bankers to be published in the eight most spoken languages in New York State.   SUMMARY OF SPECIFIC PROVISIONS: Section 1. Adding a new section 35 to the banking law. The superinten- dent of banks shall develop a pamphlet known as "the mortgage appli- cant's bill of rights" and post such pamphlet on the banking website. Such pamphlet shall be posted and printed in the eight languages which are most spoken in New York State.   JUSTIFICATION: This legislation ensures the public's awareness of the "mortgage bill of rights" by making information accessible in their native tongue The increase of diversity among constituents makes it vital for information to be translated in multiple languages, Having this information only in English can only benefit those fluent in the English language and not the public as a whole.   PRIOR LEGISLATIVE HISTORY: S. 1699 of 2011 01/11/11 REFERRED TO BANKS 01/04/12 REFERRED TO BANKS   FISCAL IMPLICATIONS: To be determined.   EFFECTIVE DATE: This act shall take effect on the one hundred eight- ieth 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.
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A00997 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                           997
 
                               2015-2016 Regular Sessions
 
                   IN ASSEMBLY
 
                                     January 8, 2015
                                       ___________
 
        Introduced by M. of A. MILLER -- read once and referred to the Committee
          on Banks
 
        AN  ACT  to  amend  the banking law, in relation to the 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:
 
     1    Section  1.  The  banking law is amended by adding a new section 35 to
     2  read as follows:
     3    § 35. Information pamphlet for residential mortgage  applicants.    1.
     4  The  superintendent  shall  develop  a  pamphlet  known as "the mortgage
     5  applicant's bill of rights" and post such pamphlet on  the  department's
     6  web  site.  Such  pamphlet  shall  be  posted  and  printed in the eight
     7  languages which are most spoken in this state. Copies of  such  pamphlet
     8  shall  be  provided  to  all  licensed lenders and banking organizations
     9  offering residential mortgage services. A copy of such pamphlet shall be
    10  provided by licensed lenders and banking organizations  to  each  person
    11  before  such  person  enters into an application for a loan secured by a
    12  mortgage  upon residential real estate. The pamphlet  provided  to  each
    13  such  person  shall be printed in a language which the person is capable
    14  of reading and understanding.  Furthermore,  such  licensed  lender  and
    15  banking  organization  shall not accept an application for a residential
    16  mortgage until the person or persons applying for a mortgage  have  been
    17  provided  a  copy of the booklet and acknowledged receipt of it in writ-
    18  ing. Every licensed lender and banking organization shall maintain  such
    19  acknowledgement along with the applicant's mortgage loan documents.
    20    2. The pamphlet and web site notice developed pursuant to this section
    21  shall  include  the following, along with other information added at the
    22  discretion of the superintendent not  otherwise  inconsistent  with  the
    23  information set forth in the pamphlet:
    24    "BILL OF RIGHTS FOR RESIDENTIAL MORTGAGE APPLICANTS
    25    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.
                                                                   LBD02807-01-5

        A. 997                              2
 
     1    1.  Compare  the  charges of different mortgage brokers and lenders to
     2  obtain the best loan possible.
     3    2.  Ask  your  mortgage  broker to explain his or her responsibilities
     4  within the mortgage lending process.
     5    3. Know how much the mortgage broker is compensated  by  you  and  the
     6  lender for your loan.
     7    4. A clear and truthful explanation of the terms and conditions of the
     8  loan.
     9    5.  Know if the loan being offered is a fixed or adjustable rate mort-
    10  gage loan, know the exact amount of your monthly loan payments,  includ-
    11  ing any projected escrow payments, know the final annual percentage rate
    12  (APR) and the amount of regular payments at the loan's closing.
    13    6.  Ask  for  a good faith estimate of all loan and settlement charges
    14  before you agree to the loan and pay any fees, such as loan  application
    15  fees,  title search and insurance fees, lender's attorney fees, property
    16  appraisal charges, inspections, recording fees,  transfer  taxes,  point
    17  and origination fees, and escrow account balances.
    18    7. Obtain credit counseling before closing a loan.
    19    8. Decide whether or not to finance any portion of the points or fees.
    20    9. Refuse to purchase credit insurance for any mortgage loan.
    21    10.  Have  your  property appraised by an independent licensed profes-
    22  sional and to receive a copy of the appraisal.
    23    11. Not be subject to deceptive marketing practices.
    24    12. Ask for the HUD settlement costs booklet, "buying your home".
    25    13. Receive the following  documents,  and  every  document  otherwise
    26  required  to be given to you at closing under federal and New York state
    27  law:
    28    a. Good faith estimate
    29    b. Truth in lending
    30    c. HUD-1 statement.
    31    14. Know what fees are not refundable if you decide to cancel the loan
    32  agreement.
    33    15. Receive in writing  the  reason  for  the  denial  or  conditional
    34  approval of your loan application.
    35    16.  If  refinancing,  you  may cancel a loan within three days of the
    36  closing  by  providing  written  notification  of  cancellation  to  the
    37  licensed lender or banking institution.
    38    17. Receive the HUD-1 document one day before the closing takes place.
    39    18. Have any lending disputes resolved in a fair and equitable manner.
    40    19.  A  credit  decision  that  is  not  based  upon your race, color,
    41  national origin, religion, sex, family status, sexual orientation, disa-
    42  bility or whether any income is from public assistance.
    43    20. File a complaint with the department if you believe that  a  mort-
    44  gage  broker or any other entity licensed by the department has violated
    45  any rules, regulations or laws which govern his or her conduct in  work-
    46  ing with you to get or process a mortgage loan.
    47    21.  File  a  complaint with the New York state department of state if
    48  you believe that a real estate broker  has  violated  any  rules,  regu-
    49  lations  or  laws which govern his or her conduct in working with you to
    50  purchase a home."
    51    § 2. This act shall take effect on the one hundred eightieth day after
    52  it shall have become a law; provided that,  effective  immediately,  any
    53  and all actions necessary to implement the provisions of this act on its
    54  effective  date are authorized and directed to be completed on or before
    55  such date.
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