Requires the development of a "what mortgage applicants need to know" pamphlet on residential mortgages and 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.
STATE OF NEW YORK
________________________________________________________________________
5390
2019-2020 Regular Sessions
IN SENATE
April 29, 2019
___________
Introduced by Sen. COMRIE -- read twice and ordered printed, and when
printed to be committed to the Committee on Banks
AN ACT to amend the banking law, in relation to what mortgage appli-
cant's 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 applicant's 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 before such person enters
13 into an application for a loan secured by a mortgage upon residential
14 real estate. Should such applicant apply for a mortgage online, the
15 licensed lender, mortgage banker or other banking organization shall
16 provide the applicant with the pamphlet via electronic communications,
17 including but not limited to, electronic mail or a hyperlink to the
18 pamphlet posted on the 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:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00371-01-9
S. 5390 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. 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.
