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Assembly Bill A9588B

2025-2026 Legislative Session

Prohibits certain financial institutions from charging a fee based on the frequency of payments or for changing the frequency of mortgage payments

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Bill Amendments

2025-A9588 - Details

See Senate Version of this Bill:
S9514
Law Section:
Banking Law
Laws Affected:
Add §9-aa, Bank L

2025-A9588 - Summary

Prohibits certain financial institutions from charging a fee for making monthly, semi-monthly, and biweekly payments or for changing the frequency of mortgage payments.

2025-A9588 - Bill Text download pdf 

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9588
 
                           I N  A S S E M B L Y
 
                             January 21, 2026
                                ___________
 
 Introduced by M. of A. TORRES -- read once and referred to the Committee
   on Banks
 
 AN  ACT  to  amend  the  banking law, in relation to prohibiting certain
   financial institutions from charging a fee for changing the  frequency
   of mortgage payments
 
   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 9-aa  to
 read as follows:
   §  9-AA.  FEES  FOR CERTAIN MORTGAGE PAYMENTS PROHIBITED. 1.  NOTWITH-
 STANDING ANY OTHER PROVISION OF LAW OR RULE OR REGULATION TO THE CONTRA-
 RY, NO FINANCIAL INSTITUTION SUBJECT TO THE PROVISIONS OF THIS  CHAPTER,
 INCLUDING  ANY BANKING ORGANIZATION, MORTGAGE BROKER OR MORTGAGE BANKER,
 INTERSTATE BRANCH ESTABLISHED PURSUANT TO ARTICLE FIVE-C OF  THIS  CHAP-
 TER, OR OTHER INVESTMENT ENTITY SUBJECT TO REGULATION BY THE DEPARTMENT,
 WHICH  PROVIDES  AN  ACCOUNT,  MORTGAGE,  OR MORTGAGE LOAN SERVICES TO A
 CUSTOMER SHALL CHARGE A FEE FOR SUCH ACCOUNTHOLDER TO PAY THEIR MORTGAGE
 MONTHLY, SEMI-MONTHLY, OR BIWEEKLY. SUCH PROHIBITED FEES SHALL  INCLUDE,
 BUT NOT BE LIMITED TO:
   (A)  ADDITIONAL  COSTS,  PAYMENTS,  FEES,  PENALTIES,  OR PREMIUMS FOR
 CHANGING BETWEEN MONTHLY, SEMI-MONTHLY, AND BIWEEKLY MORTGAGE PAYMENTS.
   (B) PAYMENT OF AN ADDITIONAL MORTGAGE PAYMENT, OR  ANY  PART  THEREOF,
 BEFORE  BEING  PERMITTED  TO  CHANGE  BETWEEN MONTHLY, SEMI-MONTHLY, AND
 BIWEEKLY MORTGAGE PAYMENTS.
   2. NOTWITHSTANDING ANY OTHER PROVISION OF LAW OR RULE OR REGULATION TO
 THE CONTRARY, EACH FINANCIAL INSTITUTION SUBJECT TO  THE  PROVISIONS  OF
 THIS  CHAPTER,  INCLUDING  ANY  BANKING ORGANIZATION, MORTGAGE BROKER OR
 MORTGAGE BANKER,  INTERSTATE  BRANCH  ESTABLISHED  PURSUANT  TO  ARTICLE
 FIVE-C OF THIS CHAPTER, OR OTHER INVESTMENT ENTITY SUBJECT TO REGULATION
 BY  THE  DEPARTMENT, WHICH PROVIDES A MORTGAGE OR MORTGAGE LOAN SERVICES
 TO A CUSTOMER SHALL PROVIDE SUCH CUSTOMER WITH AN AMORTIZATION  SCHEDULE
 AND  POTENTIAL INTEREST SAVINGS IF SUCH CUSTOMER WERE TO CHOOSE A MONTH-
 LY, SEMI-MONTHLY, OR BIWEEKLY MORTGAGE PAYMENT SCHEDULE AND  INFORMATION
 ON HOW TO CHANGE TO A DIFFERENT PAYMENT SCHEDULE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

co-Sponsors

2025-A9588A - Details

See Senate Version of this Bill:
S9514
Law Section:
Banking Law
Laws Affected:
Add §9-aa, Bank L

2025-A9588A - Summary

Prohibits certain financial institutions from charging a fee for making monthly, semi-monthly, and biweekly payments or for changing the frequency of mortgage payments.

2025-A9588A - Bill Text download pdf 

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  9588--A
 
                           I N  A S S E M B L Y
 
                             January 21, 2026
                                ___________
 
 Introduced by M. of A. TORRES -- read once and referred to the Committee
   on  Banks  -- committee discharged, bill amended, ordered reprinted as
   amended and recommitted to said committee
 
 AN ACT to amend the banking law,  in  relation  to  prohibiting  certain
   financial  institutions  from  charging fees based on the frequency of
   mortgage payments or changing such payment schedule

   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 9-aa to
 read as follows:
   § 9-AA. FEES FOR CERTAIN MORTGAGE  PAYMENTS  PROHIBITED.  1.  FOR  THE
 PURPOSES  OF  THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING
 MEANINGS:
   (A) "MORTGAGE PAYMENT SERVICER" SHALL MEAN A MORTGAGE LOAN SERVICER AS
 DEFINED IN SECTION FIVE HUNDRED NINETY  OF  THIS  CHAPTER,  ANY  BANKING
 ORGANIZATION, A LICENSED MORTGAGE BANKER PURSUANT TO ARTICLE TWELVE-C OF
 THIS  CHAPTER,  AN  INTERSTATE  BRANCH  ESTABLISHED  PURSUANT TO ARTICLE
 FIVE-C OF THIS CHAPTER, OR OTHER PERSON OR ENTITY, TO  THE  EXTENT  SUCH
 PERSON  OR  ENTITY,  DIRECTLY  OR  INDIRECTLY, SERVICES, ADMINISTERS, OR
 PROCESSES PAYMENTS ON A MORTGAGE LOAN. SUCH TERM SHALL NOT  INCLUDE  ANY
 NATIONAL  BANK, FEDERAL SAVINGS BANK, FEDERAL  SAVINGS  AND  LOAN  ASSO-
 CIATION, FEDERAL CREDIT  UNION, OR ANY ENTITY CHARTERED OR  LICENSED  BY
 THE UNITED STATES;
   (B) "MONTHLY" SHALL MEAN ONCE PER CALENDAR MONTH;
   (C) "SEMI-MONTHLY" SHALL MEAN TWICE PER CALENDAR MONTH; AND
   (D) "BIWEEKLY" SHALL MEAN ONCE EVERY FOURTEEN DAYS.
   2.  (A)  NOTWITHSTANDING  ANY  OTHER PROVISION OF LAW OR RULE OR REGU-
 LATION TO THE CONTRARY, NO MORTGAGE PAYMENT SERVICER SHALL, DIRECTLY  OR
 INDIRECTLY,  CHARGE  A  FEE  OR  OTHER  CHARGE TO A MORTGAGOR FOR MAKING
 PAYMENTS ON A MORTGAGE LOAN ON  A  MONTHLY,  SEMI-MONTHLY,  OR  BIWEEKLY
 SCHEDULE.
   (B)  SUCH  PROHIBITED  FEES OR OTHER CHARGES SHALL INCLUDE, BUT NOT BE
 LIMITED TO:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13935-03-6

co-Sponsors

2025-A9588B (ACTIVE) - Details

See Senate Version of this Bill:
S9514
Law Section:
Banking Law
Laws Affected:
Add §9-aa, Bank L

2025-A9588B (ACTIVE) - Summary

Prohibits certain financial institutions from charging a fee for making monthly, semi-monthly, and biweekly payments or for changing the frequency of mortgage payments.

2025-A9588B (ACTIVE) - Bill Text download pdf 

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  9588--B
 
                           I N  A S S E M B L Y
 
                             January 21, 2026
                                ___________
 
 Introduced  by  M. of A. TORRES, LEVENBERG, HEVESI, HYNDMAN -- read once
   and referred to the Committee on Banks -- committee  discharged,  bill
   amended,  ordered reprinted as amended and recommitted to said commit-
   tee -- again reported from said  committee  with  amendments,  ordered
   reprinted as amended and recommitted to said committee

 AN  ACT  to  amend  the  banking law, in relation to prohibiting certain
   financial institutions from charging fees based on  the  frequency  of
   mortgage payments or changing such payment schedule
 
   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 9-aa  to
 read as follows:
   §  9-AA.  FEES  FOR  CERTAIN  MORTGAGE PAYMENTS PROHIBITED. 1. FOR THE
 PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE  THE  FOLLOWING
 MEANINGS:
   (A) "MORTGAGE PAYMENT SERVICER" SHALL MEAN A MORTGAGE LOAN SERVICER AS
 DEFINED  IN  SECTION  FIVE  HUNDRED  NINETY OF THIS CHAPTER, ANY BANKING
 ORGANIZATION, A LICENSED MORTGAGE BANKER PURSUANT TO ARTICLE TWELVE-D OF
 THIS CHAPTER, AN  INTERSTATE  BRANCH  ESTABLISHED  PURSUANT  TO  ARTICLE
 FIVE-C  OF  THIS  CHAPTER, OR OTHER PERSON OR ENTITY, TO THE EXTENT SUCH
 PERSON OR ENTITY, DIRECTLY  OR  INDIRECTLY,  SERVICES,  ADMINISTERS,  OR
 PROCESSES  PAYMENTS  ON A MORTGAGE LOAN. SUCH TERM SHALL NOT INCLUDE ANY
 NATIONAL BANK, FEDERAL SAVINGS BANK, FEDERAL  SAVINGS  AND  LOAN   ASSO-
 CIATION,  FEDERAL CREDIT   UNION, OR ANY ENTITY CHARTERED OR LICENSED BY
 THE UNITED STATES;
   (B) "MONTHLY" SHALL MEAN ONCE PER CALENDAR MONTH;
   (C) "SEMI-MONTHLY" SHALL MEAN TWICE PER CALENDAR MONTH; AND
   (D) "BIWEEKLY" SHALL MEAN ONCE EVERY FOURTEEN DAYS.
   2. (A) NOTWITHSTANDING ANY OTHER PROVISION OF LAW  OR  RULE  OR  REGU-
 LATION  TO THE CONTRARY, NO MORTGAGE PAYMENT SERVICER SHALL, DIRECTLY OR
 INDIRECTLY, CHARGE A FEE OR OTHER  CHARGE  TO  A  MORTGAGOR  FOR  MAKING
 PAYMENTS  ON  A  MORTGAGE  LOAN  ON A MONTHLY, SEMI-MONTHLY, OR BIWEEKLY
 SCHEDULE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13935-05-6

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