Bill S254-2013

Requires the mortgage bill of rights pamphlet on residential mortgages

Requires the mortgage bill of rights pamphlet on residential mortgages shall be in 8 most popularly spoken languages in the state.

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  • Jan 8, 2014: REFERRED TO BANKS
  • Jan 9, 2013: REFERRED TO BANKS

Memo

BILL NUMBER:S254

TITLE OF BILL: An act to amend the banking law, in relation to the mortgage bill of rights pamphlet on residential mortgages

PURPOSE OR GENERAL IDEA OF BILL: Requires information to consumers of the mortgage bill of rights that are provided by mortgage lenders and bankers to be published in the eight most spoken languages in New York State.

SUMMARY OF SPECIFIC PROVISIONS: Section 1. Adding a new section 35 to the banking law. The superintendent of banks shall develop a pamphlet known as "the mortgage applicant's bill of rights" and post such pamphlet on the banking website. Such pamphlet shall be posted and printed in the eight languages which are most spoken in New York State.

JUSTIFICATION: This legislation ensures the public's awareness of the "mortgage bill of rights" by making information accessible in their native tongue The increase of diversity among constituents makes it vital for information to be translated in multiple languages, Having this information only in English can only benefit those fluent in the English language and not the public as a whole.

PRIOR LEGISLATIVE HISTORY: S. 1699 of 2011 01/11/11 REFERRED TO BANKS 01/04/12 REFERRED TO BANKS

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: 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.


Text

STATE OF NEW YORK ________________________________________________________________________ 254 2013-2014 Regular Sessions IN SENATE (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
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.

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