Requires the development of a "what mortgage applicants need to know" pamphlet on residential mortgages; provides such pamphlet shall be posted and printed in the 6 most common non-English languages spoken by individuals with limited English proficiency in New York state.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9686
SPONSOR: Weprin TITLE OF BILL:
An act to amend the banking law, in relation to what mortgage applicants
need to know pamphlet on residential mortgages
PURPOSE OR GENERAL IDEA OF BILL:
This bill would require the creation and publication of the "what mort-
gage applicants need to know" pamphlet. The pamphlet shall be provided
to consumers by mortgage lenders and bankers, and shall be published in
the six 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 the Department of Financial Services shall develop a pamphlet
known as "what mortgage applicants need to know " and post such pamphlet
on the department's website. Such pamphlet shall be posted and printed
in the six languages which are most spoken in New York State.
JUSTIFICATION:
This legislation ensures the public's awareness of the "what mortgage
applicants need to know:" This legislation will serve as another tool to
assist New Yorkers with homebuying, which can be confusing on the first
time or for those planning to buy, and have not done so in a long time.
Regardless, having access to this information will inevitably assist
anyone looking to buy a home.
We know New York is a diverse place. As such, this bill requires mort-
gage pamphlets be translated in multiple languages. Having this informa-
tion only in English would not be fair to those that speak English as a
second-language. Therefore, this bill requires such pamphlet to be in
the six most prevalent languages in New York.
It is important to have access to this information before closing, as
interest rates and market comparisons may help influence the agreed.
upon cost and save New Yorkers money over the long-run. In addition,
lenders may not be as forthcoming as consumers may believe in the inter-
est of writing mortgages, even when rates are less than ideal.
PRIOR LEGISLATIVE HISTORY:
Assembly Bill 3322-B of 2017-18.
2021-2022: S5512
FISCAL IMPLICATIONS:
To be determined.
EFFECTIVE DATE:
This act shall take effect-on the one hundred eightieth 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.
STATE OF NEW YORK
________________________________________________________________________
9686
IN ASSEMBLY
April 3, 2024
___________
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 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:
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 "what mortgage
5 applicants need to know" and post such pamphlet on the department's web
6 site. Such pamphlet shall be posted and printed in the six most common
7 non-English languages spoken by individuals with limited-English profi-
8 ciency in New York state as based on the most recent census. Copies of
9 such pamphlet shall be provided to all licensed lenders and banking
10 organizations offering residential mortgage services. A copy of such
11 pamphlet shall be provided by licensed lenders, mortgage bankers and
12 other banking organizations to each person applying for a loan secured
13 by a mortgage upon residential real estate in accordance with the
14 timing requirements under 12 CFR § 1026.19(e)(1)(iii). A licensed lend-
15 er, mortgage banker or other banking organization may provide the appli-
16 cant with the pamphlet via electronic communications, including but not
17 limited to, electronic mail or a hyperlink to the pamphlet posted on the
18 department's web site.
19 2. The pamphlet and web site notice developed pursuant to this section
20 shall include the following, along with other information added at the
21 discretion of the superintendent not otherwise inconsistent with the
22 information set forth in the pamphlet:
23 ""WHAT MORTGAGE APPLICANTS NEED TO KNOW"
24 As an applicant for a residential mortgage you have the right to:
25 1. Compare and negotiate the charges of different mortgage brokers and
26 lenders to obtain the best loan possible.
27 2. Ask your mortgage broker to explain such person's responsibilities
28 within the mortgage lending process.
29 3. Know how much the mortgage broker is compensated by you and the
30 lender for your loan.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04048-06-4
A. 9686 2
1 4. A clear and truthful explanation of the terms and conditions of the
2 loan.
3 5. Know if the loan being offered is a fixed or adjustable rate mort-
4 gage loan, whether the loan can be transferred or refinanced, know the
5 exact amount of your monthly loan payments, including any projected
6 escrow payments, know the final annual percentage rate (APR) and the
7 amount of regular payments at the loan's closing.
8 6. Ask for loan estimate detailing all loan and settlement charges
9 before you agree to the loan and pay any fees, including without limita-
10 tion loan application fees, title search and insurance fees, lender's
11 attorney fees, property appraisal charges, inspections, recording fees,
12 late payment fees, transfer taxes, point and origination fees, escrow
13 account balances, which services a loan applicant can shop for and which
14 they cannot, and you are entitled to receive such estimate within three
15 business days of applying for a loan.
16 7. Obtain credit counseling before closing a loan.
17 8. Decide whether or not to finance any portion of the points or fees.
18 9. Refuse to purchase credit insurance for any mortgage loan.
19 10. Have your property appraised by an independent licensed profes-
20 sional and to receive a copy of the appraisal.
21 11. Not be subject to deceptive marketing practices.
22 12. Ask for the consumer financial protection bureau's booklet "Your
23 home loan toolkit".
24 13. Receive the following documents, and every document otherwise
25 required to be given to you at closing under federal and New York state
26 law:
27 a. Loan estimate,
28 b. Closing disclosure.
29 14. Know what deposits and fees are not refundable if you decide to
30 cancel the loan agreement.
31 15. Receive in writing the reason for the denial or conditional
32 approval of your loan application.
33 16. If refinancing, you may cancel a loan within three days of the
34 closing by providing written notification of cancellation to the
35 licensed lender or banking institution.
36 17. Receive the closing disclosure three days before the closing takes
37 place.
38 18. Have any lending disputes resolved in a fair and equitable manner.
39 19. A credit decision that is not based upon your race, color,
40 national origin, religion, sex, family status, sexual orientation, disa-
41 bility or whether any income is from public assistance.
42 20. File a complaint with the department or the Consumer Financial
43 Protection Bureau if you believe that a mortgage broker or any other
44 entity licensed by the department or the Consumer Financial Protection
45 Bureau has violated any rules, regulations or laws which govern such
46 person's conduct in working with you to get or process a mortgage loan.
47 21. File a complaint with the New York state department of state or
48 the Consumer Financial Protection Bureau if you believe that a real
49 estate broker has violated any rules, regulations or laws which govern
50 such person's conduct in working with you to purchase a home."
51 § 2. This act shall take effect on the one hundred eightieth day after
52 it shall have become a law. Effective immediately, the addition, amend-
53 ment and/or repeal of any rule or regulation necessary for the implemen-
54 tation of this act on its effective date are authorized to be made and
55 completed on or before such effective date.
