Shown verbatim: the complete text as captured from the official source posted by the New York State Senate, fetched 2026-08-11. Nothing is edited or removed. Where this bill amends existing law, language marked for deletion in the official source appears here in brackets. The official bill page.
S T A T E O F N E W Y O R K
________________________________________________________________________
424
2025-2026 Regular Sessions
I N A S S E M B L Y
(PREFILED)
January 8, 2025
___________
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 notice of the posting of
the what mortgage applicants need to know pamphlet on residential
mortgages and modification of such pamphlet
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 35 of the banking law, as added by a chapter of the
laws of 2024 amending the banking law relating to what mortgage appli-
cants need to know pamphlet on residential mortgages, as proposed in
legislative bills numbers S. 5597-B and A. 9686, is amended to read as
follows:
§ 35. Information pamphlet for residential mortgage applicants. 1.
The superintendent shall develop a pamphlet known as "what mortgage
applicants need to know" and post such pamphlet on the department's web
site. Such pamphlet shall be posted and printed in the six most common
non-English languages spoken by individuals with limited-English profi-
ciency in New York state as based on the most recent census. [Copies of
such pamphlet shall be provided to all licensed lenders and banking
organizations offering residential mortgage services.] THE DEPARTMENT
WILL NOTIFY MORTGAGE BANKERS AND BANKING ORGANIZATIONS WHEN THE PAMPHLET
IS POSTED ON THE DEPARTMENT'S WEB SITE AND WHEN ANY CHANGES TO THE
PAMPHLET ARE MADE. A copy of such pamphlet shall be provided by
[licensed lenders,] mortgage bankers and other banking organizations to
each person applying for a loan secured by a mortgage upon residential
real estate in accordance with the timing requirements under 12 CFR §
1026.19(e)(1)(iii). A [licensed lender,] mortgage banker or [other]
banking organization may provide the applicant with the pamphlet via
electronic communications, including but not limited to, electronic mail
or a hyperlink to the pamphlet posted on the department's web site.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02908-01-5
A. 424 2
2. The pamphlet [and web site notice] developed pursuant to this
section shall [include] BE SUBSTANTIALLY IN the following FORM, along
with other information added at the discretion of the superintendent
[not otherwise inconsistent with the information set forth in the
pamphlet]:
""WHAT MORTGAGE APPLICANTS NEED TO KNOW"
As an applicant for a residential mortgage you have the right to:
1. Compare and negotiate the charges of different mortgage brokers and
lenders to obtain the best loan possible.
2. Ask your mortgage broker to explain such person's responsibilities
within the mortgage lending process.
3. Know how much the mortgage broker is compensated by you and the
lender for your loan.
4. A clear and truthful explanation of the terms and conditions of the
loan.
5. Know if the loan being offered is a fixed or adjustable rate mort-
gage loan, whether the loan can be transferred or refinanced, know the
exact amount of your monthly loan payments, including any projected
escrow payments, know the final annual percentage rate (APR) and the
amount of regular payments at the loan's closing.
6. Ask for [loan] AN estimate detailing all loan and settlement charg-
es before you agree to the loan and pay any fees, including without
limitation loan application fees, title search and insurance fees, lend-
er's attorney fees, property appraisal charges, inspections, recording
fees, late payment fees, transfer taxes, point and origination fees,
escrow account balances, which services a loan applicant can shop for
and which they cannot, and you are entitled to receive such estimate
within three business days of applying for a loan.
7. Obtain credit counseling before closing a loan.
8. Decide whether or not to finance any portion of the points or fees.
9. Refuse to purchase credit insurance for any mortgage loan.
10. Have your property appraised by an independent licensed profes-
sional and to receive a copy of the appraisal.
11. Not be subject to deceptive marketing practices.
12. Ask for the consumer financial protection bureau's booklet "Your
home loan toolkit".
13. Receive the following documents, and every document otherwise
required to be given to you at closing under federal and New York state
law:
a. Loan estimate[,] OR GOOD FAITH ESTIMATE DEPENDING ON THE LOAN YOU
ARE APPLYING FOR.
b. Closing disclosure.
14. Know what deposits and fees are not refundable if you decide to
cancel the loan agreement.
15. Receive in writing the reason for the denial or conditional
approval of your loan application.
16. If refinancing, you may cancel a loan within three days of the
closing by providing written notification of cancellation to the
licensed lender or banking institution.
17. Receive the closing disclosure three days before the closing takes
place.
18. Have any lending disputes resolved in a fair and equitable manner.
19. A credit decision that is not based upon your race, color,
national origin, religion, sex, family status, sexual orientation, disa-
bility or whether any income is from public assistance.
A. 424 3
20. File a complaint with the department or the Consumer Financial
Protection Bureau if you believe that a mortgage broker or any other
entity licensed by the department or the Consumer Financial Protection
Bureau has violated any rules, regulations or laws which govern such
person's conduct in working with you to get or process a mortgage loan.
21. File a complaint with the New York state department of state or
the Consumer Financial Protection Bureau if you believe that a real
estate broker has violated any rules, regulations or laws which govern
such person's conduct in working with you to purchase a home."
3. THE SUPERINTENDENT MAY MODIFY THE LANGUAGE OF THE PAMPHLET TO
ENSURE THAT THE PAMPHLET IS ACCURATE AND CONSISTENT WITH APPLICABLE LAW.
§ 2. This act shall take effect on the same date and in the same
manner as a chapter of the laws of 2024 amending the banking law relat-
ing to what mortgage applicants need to know pamphlet on residential
mortgages, as proposed in legislative bills numbers S. 5597-B and A.
9686, takes effect.Every fact on this page links to its source, starting with the official bill record.