N.Y. Banking Law § 35: Information pamphlet for residential mortgage applicants

§ 35. Information pamphlet for residential mortgage applicants. 1. The

superintendent shall develop a pamphlet known as "what mortgage

applicants need to know" and post such pamphlet on the department's web

site. Such pamphlet shall be posted and printed in the six most common

non-English languages spoken by individuals with limited-English

proficiency in New York state as based on the most recent census. The

department will notify mortgage bankers and banking organizations when

the pamphlet is posted on the department's web site and when any changes

to the pamphlet are made. A copy of such pamphlet shall be provided by

mortgage bankers and other banking organizations to each person applying

for a loan secured by a mortgage upon residential real estate in

accordance with the timing requirements under 12 CFR §

1026.19(e)(1)(iii). A mortgage banker or banking organization may

provide the applicant with the pamphlet via electronic communications,

including but not limited to, electronic mail or a hyperlink to the

pamphlet posted on the department's web site.

2. The pamphlet developed pursuant to this section shall be

substantially in the following form, along with other information added

at the discretion of the superintendent:

""WHAT MORTGAGE APPLICANTS NEED TO KNOW"

As an applicant for a residential mortgage you have the right to:

1. Compare and negotiate the charges of different mortgage brokers and

lenders to obtain the best loan possible.

2. Ask your mortgage broker to explain such person's 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, whether the loan can be transferred or refinanced, 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 an estimate detailing all loan and settlement charges

before you agree to the loan and pay any fees, including without

limitation loan application fees, title search and insurance fees,

lender's attorney fees, property appraisal charges, inspections,

recording fees, late payment fees, transfer taxes, point and origination

fees, escrow account balances, which services a loan applicant can shop

for and which they cannot, and you are entitled to receive such estimate

within three business days of applying for a loan.

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 consumer financial protection bureau's booklet "Your

home loan toolkit".

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. Loan estimate or good faith estimate depending on the loan you are

applying for.

b. Closing disclosure.

14. Know what deposits and 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 closing disclosure three days 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 or the Consumer Financial

Protection Bureau if you believe that a mortgage broker or any other

entity licensed by the department or the Consumer Financial Protection

Bureau has violated any rules, regulations or laws which govern such

person's conduct in working with you to get or process a mortgage loan.

21. File a complaint with the New York state department of state or

the Consumer Financial Protection Bureau if you believe that a real

estate broker has violated any rules, regulations or laws which govern

such person's conduct in working with you to purchase a home."

3. The superintendent may modify the language of the pamphlet to

ensure that the pamphlet is accurate and consistent with applicable law.