Text of NY S 2367 (2010)

Skip to main content New York State Assembly Speaker Carl E. Heastie Assembly Members Legislative Info Public Hearings Speaker's Press Assembly Reports Committees & More Bill Search Home Laws Legislative Calendar Public Hearing Schedule Assembly Calendars Assembly Committee Agenda Javascript must be enabled to properly view this page. Bill No.: Summary Actions Floor Votes Memo Text S02367 Summary: BILL NOS02367B SAME ASSAME AS S07320 SPONSORMONSERRATE COSPNSRKLEIN, ONORATO, THOMPSON MLTSPNSR Add S35, Bank L 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. Go to top S02367 Text: STATE OF NEW YORK ________________________________________________________________________ 2367--B 2009-2010 Regular Sessions IN SENATE February 19, 2009 ___________ Introduced by Sens. MONSERRATE, HASSELL-THOMPSON, KLEIN, ONORATO, OPPEN- HEIMER, THOMPSON -- read twice and ordered printed, and when printed to be committed to the Committee on Banks -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee 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 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 of banks shall develop a pamphlet known as "the mort- 5 gage applicant's bill of rights" and post such pamphlet on the banking 6 department's 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 estate. Furthermore, such licensed lender and banking organization shall 12 not accept an application for a residential mortgage until the person or 13 persons applying for a mortgage have been provided a copy of the booklet 14 and acknowledged receipt of it in writing. Every licensed lender and 15 banking organization shall maintain such acknowledgement along with the 16 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 EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD00046-07-9 S. 2367--B 2 1 discretion of the superintendent not otherwise inconsistent with the 2 information set forth in the pamphlet: 3 "BILL OF RIGHTS FOR RESIDENTIAL MORTGAGE APPLICANTS 4 As an applicant for a residential mortgage you have the right to: 5 1. Compare the charges of different mortgage brokers and lenders to 6 obtain the best loan possible. 7 2. Ask your mortgage broker to explain his or her responsibilities 8 within the mortgage lending process. 9 3. Know how much the mortgage broker is compensated by you and the 10 lender for your loan. 11 4. A clear and truthful explanation of the terms and conditions of the 12 loan. 13 5. Know if the loan being offered is a fixed or adjustable rate mort- 14 gage loan, know the exact amount of your monthly loan payments, includ- 15 ing any projected escrow payments, know the final annual percentage rate 16 (APR) and the amount of regular payments at the loan's closing. 17 6. Ask for a good faith estimate of all loan and settlement charges 18 before you agree to the loan and pay any fees, such as loan application 19 fees, title search and insurance fees, lender's attorney fees, property 20 appraisal charges, inspections, recording fees, transfer taxes, point 21 and origination fees, and escrow account balances. 22 7. Obtain credit counseling before closing a loan. 23 8. Decide whether or not to finance any portion of the points or fees. 24 9. Refuse to purchase credit insurance for any mortgage loan. 25 10. Have your property appraised by an independent licensed profes- 26 sional and to receive a copy of the appraisal. 27 11. Not be subject to deceptive marketing practices. 28 12. Ask for the HUD settlement costs booklet, "buying your home". 29 13. Receive the following documents, and every document otherwise 30 required to be given to you at closing under federal and New York state 31 law: 32 a. Good faith estimate 33 b. Truth in lending 34 c. HUD-1 statement 35 14. Know what fees are not refundable if you decide to cancel the loan 36 agreement. 37 15. Receive in writing the reason for the denial or conditional 38 approval of your loan application. 39 16. If refinancing, you may cancel a loan within three days of the 40 closing by providing written notification of cancellation to the 41 licensed lender or banking institution. 42 17. Receive the HUD-1 document one day before the closing takes place. 43 18. Have any lending disputes resolved in a fair and equitable manner. 44 19. A credit decision that is not based upon your race, color, 45 national origin, religion, sex, family status, sexual orientation, disa- 46 bility or whether any income is from public assistance. 47 20. File a complaint with the New York state banking department if you 48 believe that a mortgage broker or any other entity licensed by the bank- 49 ing department has violated any rules, regulations or laws which govern 50 his or her conduct in working with you to get or process a mortgage 51 loan. 52 21. File a complaint with the New York state department of state if 53 you believe that a real estate broker has violated any rules, regu- 54 lations or law which governs his or her conduct in working with you to 55 purchase a home." S. 2367--B 3 1 § 2. This act shall take effect on the one hundred eightieth day after 2 it shall have become a law; provided that, effective immediately, any 3 and all actions necessary to implement the provisions of this act on its 4 effective date are authorized and directed to be completed on or before 5 such date. Go to top Sitemap Request Information Directions and Maps