Bill Text: NY S03544 | 2019-2020 | General Assembly | Introduced

Bill Title: Requires mortgage lenders and brokers to provide consumers with a mortgage bill of rights pamphlet which must be read and signed by the consumer prior to applying for a mortgage.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced) 2019-02-08 - REFERRED TO BANKS [S03544 Detail]

Download: New_York-2019-S03544-Introduced.html

                STATE OF NEW YORK
                               2019-2020 Regular Sessions
                    IN SENATE
                                    February 8, 2019
        Introduced  by  Sens. COMRIE, KENNEDY -- 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 directing licensed mort-
          gage bankers and authorized mortgage loan originators to provide mort-
          gage applicants with a mortgage bill of rights pamphlet on residential
          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  internet  website.  Copies  of  such  pamphlet  shall be provided to all
     7  licensed lenders and banking organizations offering residential mortgage
     8  services.  A copy of such pamphlet shall be provided by licensed lenders
     9  and banking organizations to each person before such person enters  into
    10  an  application  for  a loan secured by a mortgage upon residential real
    11  property. Furthermore, such licensed  lender  and  banking  organization
    12  shall  not  accept  an  application for a residential mortgage until the
    13  person or persons applying for a mortgage have been provided a  copy  of
    14  the  booklet  and  acknowledged receipt of it in writing. Every licensed
    15  lender and banking  organization  shall  maintain  such  acknowledgement
    16  along with the applicant's mortgage loan documents.
    17    2.  The pamphlet and website notice developed pursuant to this section
    18  shall include the following, along with other information added  at  the
    19  discretion  of  the  superintendent  not otherwise inconsistent with the
    20  information set forth in the pamphlet:
    22  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.

        S. 3544                             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 New York state department  of  financial
    44  services  if  you  believe  that  a  mortgage broker or any other entity
    45  licensed by such department has violated any rules, regulations or  laws
    46  which  govern his or her conduct in working with you to get or process a
    47  mortgage loan.
    48    21. File a complaint with the New York state department  of  state  if
    49  you  believe  that  a  real  estate broker has violated any rules, regu-
    50  lations or law which governs his or her conduct in working with  you  to
    51  purchase a home."
    52    § 2. This act shall take effect on the one hundred twentieth day after
    53  it  shall  have  become a law; provided that, effective immediately, any
    54  and all actions necessary to implement the provisions of this act on its
    55  effective date are authorized and directed to be completed on or  before
    56  such date.