Senate Bill S254

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

                                   254

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sen. SAMPSON -- 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  the  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 DEPARTMENT'S
WEB SITE. SUCH PAMPHLET  SHALL  BE  POSTED  AND  PRINTED  IN  THE  EIGHT
LANGUAGES  WHICH  ARE MOST SPOKEN IN THIS STATE. 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. THE PAMPHLET PROVIDED TO EACH
SUCH PERSON SHALL BE PRINTED IN A LANGUAGE WHICH THE PERSON  IS  CAPABLE
OF  READING  AND  UNDERSTANDING.  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  WRIT-
ING.  EVERY LICENSED LENDER AND BANKING ORGANIZATION SHALL MAINTAIN SUCH
ACKNOWLEDGEMENT ALONG WITH THE APPLICANT'S MORTGAGE LOAN DOCUMENTS.
  2. THE PAMPHLET AND WEB SITE 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

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

                                                           LBD02182-01-3

S. 254                              2

  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.
  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 DEPARTMENT IF YOU BELIEVE THAT A MORT-
GAGE BROKER OR ANY OTHER ENTITY LICENSED BY THE DEPARTMENT HAS  VIOLATED
ANY  RULES, REGULATIONS OR LAWS WHICH GOVERN HIS OR HER CONDUCT IN WORK-
ING 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 LAWS WHICH GOVERN 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.