NY State Senate Bill 2009-S7320

Senate Bill S7320

2009-2010 Legislative Session

Requires mortgage lenders and brokers to provide consumer with mortgage bill of rights pamphlet which must be signed by the consumer prior to mortgage application

download bill text pdf

Archive: Last Bill Status - In Senate Committee Banks Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 29, 2010	referred to banks

2009-S7320 (ACTIVE) - Details

See Senate Version of this Bill:: S2367
Current Committee:: Senate Banks
Law Section:: Banking Law
Laws Affected:: Add §35, Bank L

2009-S7320 (ACTIVE) - Summary

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.

2009-S7320 (ACTIVE) - Sponsor Memo

2009-S7320 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7320

                            I N  S E N A T E

                             March 29, 2010
                               ___________

Introduced  by  Sen. PERALTA -- 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
  mortgages

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The  banking law is amended by adding a new section 35 to
read as follows:
  S 35. INFORMATION PAMPHLET FOR RESIDENTIAL MORTGAGE  APPLICANTS.    1.
THE  SUPERINTENDENT  SHALL  DEVELOP  A  PAMPHLET  KNOWN AS "THE MORTGAGE
APPLICANT'S BILL OF RIGHTS"  AND  POST  SUCH  PAMPHLET  ON  THE  BANKING
DEPARTMENT'S  WEBSITE.  COPIES OF SUCH PAMPHLET SHALL BE PROVIDED TO ALL
LICENSED LENDERS AND BANKING ORGANIZATIONS OFFERING RESIDENTIAL MORTGAGE
SERVICES.  A COPY OF SUCH PAMPHLET SHALL BE PROVIDED BY LICENSED LENDERS
AND BANKING ORGANIZATIONS TO EACH PERSON BEFORE SUCH PERSON ENTERS  INTO
AN  APPLICATION  FOR  A LOAN SECURED BY A MORTGAGE UPON RESIDENTIAL REAL
ESTATE. FURTHERMORE, SUCH LICENSED LENDER AND BANKING ORGANIZATION SHALL
NOT ACCEPT AN APPLICATION FOR A RESIDENTIAL MORTGAGE UNTIL THE PERSON OR
PERSONS APPLYING FOR A MORTGAGE HAVE BEEN PROVIDED A COPY OF THE BOOKLET
AND ACKNOWLEDGED RECEIPT OF IT IN WRITING.  EVERY  LICENSED  LENDER  AND
BANKING  ORGANIZATION SHALL MAINTAIN SUCH ACKNOWLEDGEMENT ALONG WITH THE
APPLICANT'S MORTGAGE LOAN DOCUMENTS.
  2. THE PAMPHLET AND WEBSITE NOTICE DEVELOPED PURSUANT TO THIS  SECTION
SHALL  INCLUDE  THE FOLLOWING, ALONG WITH OTHER INFORMATION ADDED AT THE
DISCRETION OF THE SUPERINTENDENT NOT  OTHERWISE  INCONSISTENT  WITH  THE
INFORMATION SET FORTH IN THE PAMPHLET:
  "BILL OF RIGHTS FOR RESIDENTIAL MORTGAGE APPLICANTS
AS AN APPLICANT FOR A RESIDENTIAL MORTGAGE YOU HAVE THE RIGHT TO:
  1.  COMPARE  THE  CHARGES OF DIFFERENT MORTGAGE BROKERS AND LENDERS TO
OBTAIN THE BEST LOAN POSSIBLE.
  2. ASK YOUR MORTGAGE BROKER TO EXPLAIN  HIS  OR  HER  RESPONSIBILITIES
WITHIN THE MORTGAGE LENDING PROCESS.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

                                                           LBD00046-14-0

S. 7320                             2

  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, KNOW THE EXACT AMOUNT OF YOUR MONTHLY LOAN PAYMENTS,  INCLUD-
ING 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  A GOOD FAITH ESTIMATE OF ALL LOAN AND SETTLEMENT CHARGES
BEFORE YOU AGREE TO THE LOAN AND PAY ANY FEES, SUCH AS LOAN  APPLICATION
FEES,  TITLE SEARCH AND INSURANCE FEES, LENDER'S ATTORNEY FEES, PROPERTY
APPRAISAL CHARGES, INSPECTIONS, RECORDING FEES,  TRANSFER  TAXES,  POINT
AND ORIGINATION FEES, AND ESCROW ACCOUNT BALANCES.
  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 HUD SETTLEMENT COSTS BOOKLET, "BUYING YOUR HOME".
  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. GOOD FAITH ESTIMATE
  B. TRUTH IN LENDING
  C. HUD-1 STATEMENT
  14. KNOW WHAT 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 HUD-1 DOCUMENT ONE DAY 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.
  20. FILE A COMPLAINT WITH THE NEW YORK STATE BANKING DEPARTMENT IF YOU
BELIEVE THAT A MORTGAGE BROKER OR ANY OTHER ENTITY LICENSED BY THE BANK-
ING DEPARTMENT HAS VIOLATED ANY RULES, REGULATIONS OR LAWS WHICH  GOVERN
HIS  OR  HER  CONDUCT  IN  WORKING WITH YOU TO GET OR PROCESS A MORTGAGE
LOAN.
  21. FILE A COMPLAINT WITH THE NEW YORK STATE DEPARTMENT  OF  STATE  IF
YOU  BELIEVE  THAT  A  REAL  ESTATE BROKER HAS VIOLATED ANY RULES, REGU-
LATIONS OR LAW WHICH GOVERNS HIS OR HER CONDUCT IN WORKING WITH  YOU  TO
PURCHASE A HOME."
  S 2. This act shall take effect on the one hundred eightieth day after
it  shall  have  become a law; provided that, effective immediately, any
and all actions necessary to implement the provisions of this act on its
effective date are authorized and directed to be completed on or  before
such date.

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