Bill Text: NY S05390 | 2019-2020 | General Assembly | Introduced

Bill Title: 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.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2019-04-29 - REFERRED TO BANKS [S05390 Detail]

Download: New_York-2019-S05390-Introduced.html

                STATE OF NEW YORK
                               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:
    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.

        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.