On Feb. 14, NY LEG enacted bill on mortgage pamphlet notifications.
NY LEG approved bill AB 424 (SB 767) to give notice of the posting or modification of the What mortgage applicants need to know pamphlet on residential mortgages.
Bill aims to effectuate Chapter 566 of the Laws of 2024, which required that NYDFS create a new What mortgage applicants need to know pamphlet, see #214350.
Document dated Feb. 14, 2025, received from NY LEG Mar. 5, summarized on Mar. 9.
Mortgage Pamphlet
Amends section 35 of Banking law (NY FIN 2-2-35) proposed in Bill S 5597/A 9686.
Bill S 5597, A 9686 require NYDFS to create pamphlet and post it on the DFS website.
Changes require the DFS to notify mortgage lenders and bankers when such pamphlet is posted on the website, as well as when any updates are made to the pamphlet.
Included form to be substantially similar to format that should be used for pamphlet.
The loan estimate, which is required to be included in the closing documents, may also be a good faith estimate depending on the loan for which the applicant is applying.
The superintendent can modify pamphlet language for consistency with applicable law.
Legislative History
On Jan. 8, 2025, bill introduced in Assembly; on Feb. 3, 2025, bill passed in Assembly.
On Feb. 3, 2025, bill delivered to Senate; on Feb. 4. 2025, bill was passed in Senate.
On Feb. 4, 2025, bill returned to Assembly; on Feb. 12, 2025, bill sent to governor.
On Feb. 14, 2025, bill was approved by the governor, and was signed as Chapter 10.
Effectiveness
Takes effect on same day/manner that S 5597/A 9686, take effect, i.e., Jun. 11, 2025.
Regulators
NY LEG
Entity Types
Bank; MG Orig; Servicer; Thrift
Reference
Ch. 10, Bill A00424, S00767, 2/14/2025; Citation: NY FIN 2-2-35;
Functions
Compliance; Legal; Operations; Record Retention; Reporting
