S73-2013 Actions

• Jan 9, 2013: REFERRED TO BANKS

S73-2013 Memo

BILL NUMBER:S73

TITLE OF BILL:
An act
to amend the banking law, in relation to directing licensed mortgage
bankers and authorized mortgage loan originators to provide mortgage
applicants with a mortgage bill of rights
pamphlet on residential mortgages

PURPOSE:
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.

SUMMARY OF PROVISIONS:
The Superintendent of Banks shall develop, post on the Departments
website, print, and distribute in sufficient numbers, to every
licensed mortgage lender and banking organization a mortgage bill of
rights pamphlet A copy of such pamphlet shall be given to each person
inquiring about a mortgage loan. Furthermore, no licensed mortgage
lender or banking organization shall accept an application for a
residential mortgage until applicant(s) has signed a statement that
he/she has read and understands the mortgage bill pamphlet.

JUSTIFICATION:
The mortgage crises highlighted the fact that New York State residents
are unaware of their rights and entitlements throughout the mortgage
process" Therefore, I have introduced this bill which will require
the New York State Banking Department to create an informational
pamphlet for lenders to provide to customers prior to said customers
filling out the mortgage application.

LEGISLATIVE HISTORY:
2011-12: S.132
2010:    S.7399

FISCAL IMPLICATIONS:
To be determined.

EFFECTIVE DATE:
This act shall take effect on the one hundred twentieth day after is
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.

S73-2013 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                          73
 2013-2014 Regular Sessions
 I N  SENATE
 (PREFILED)
 January 9, 2013
 
 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  DEPARTMENT'S
 INTERNET  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
 PROPERTY. 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:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD01100-01-3
 
       S. 73                               2
 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 NEW YORK STATE DEPARTMENT  OF  FINANCIAL
 SERVICES  IF  YOU  BELIEVE  THAT  A  MORTGAGE BROKER OR ANY OTHER ENTITY
 LICENSED BY SUCH 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 twentieth 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.

*By contributing or voting you agree to the Terms of Participation and Privacy Policy and verify you are over 13.

Discuss!