What's happening
This bill requires the creation and distribution of a "mortgage applicant's bill of rights" pamphlet, outlining key rights for residential mortgage applicants in New York State.
Why it matters
Empowers applicants through transparency. By requiring lenders to provide a detailed "bill of rights" pamphlet, the bill aims to educate mortgage applicants about their entitlements—including fee disclosures, the right to compare offers, and fair treatment—helping them make more informed choices and reducing the risk of exploitation.
Strengthens consumer protections and accountability. The legislation mandates written acknowledgment of receipt of the pamphlet, creating a paper trail that could help resolve disputes and ensure that lenders comply with information-sharing obligations.
Promotes inclusivity and accessibility. The pamphlet must be available in the eight most spoken languages in New York, ensuring non-English speakers have equal access to critical information about the mortgage process and their rights.
Encourages fair lending and anti-discrimination. By explicitly informing applicants of their right to a credit decision free from discrimination and providing guidance on filing complaints against improper conduct, the bill reinforces legal protections against biased or predatory lending practices.
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Who cares
Headline styles
Require Mortgage Rights Pamphlet
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 14
No co-sponsors yet.
History
- Referred to banks
- Referred to banks
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2765
2019-2020 Regular Sessions
IN SENATE
January 29, 2019
Introduced by Sen. COMRIE -- 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 Assembly, do enact as follows:
Section 1. The banking law is amended by adding a new section 35 to read as follows:
§ 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 writing. 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:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00371-02-9
S. 2765 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 mortgage loan, know the exact amount of your monthly loan payments, including 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 professional 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, disability or whether any income is from public assistance.
20. File a complaint with the department if you believe that a mortgage broker or any other entity licensed by the 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, regulations or laws which govern his or her conduct in working with you to purchase a home."
§ 2. This act shall take effect on the one hundred eightieth day after it shall have become a law. Effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized to be made and completed on or before such effective date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
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 superinten- dent of banks shall develop a pamphlet known as "the mortgage appli- cant's bill of rights" and post such pamphlet on the banking website.
Such pamphlet shall be posted and printed in the eight languages that 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.2654 of 2017-18; 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.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.