§ 35 — Information pamphlet for residential mortgage applicants

§ 35. Information pamphlet for residential mortgage applicants. 1. The\nsuperintendent shall develop a pamphlet known as "what mortgage\napplicants need to know" and post such pamphlet on the department's web\nsite. Such pamphlet shall be posted and printed in the six most common\nnon-English languages spoken by individuals with limited-English\nproficiency in New York state as based on the most recent census. The\ndepartment will notify mortgage bankers and banking organizations when\nthe pamphlet is posted on the department's web site and when any changes\nto the pamphlet are made. A copy of such pamphlet shall be provided by\nmortgage bankers and other banking organizations to each person applying\nfor a loan secured by a mortgage upon residential real estate in\naccordance with the timing requirements under 12 CFR §\n1026.19(e)(1)(iii). A mortgage banker or banking organization may\nprovide the applicant with the pamphlet via electronic communications,\nincluding but not limited to, electronic mail or a hyperlink to the\npamphlet posted on the department's web site.\n 2. The pamphlet developed pursuant to this section shall be\nsubstantially in the following form, along with other information added\nat the discretion of the superintendent:\n ""WHAT MORTGAGE APPLICANTS NEED TO KNOW"\n As an applicant for a residential mortgage you have the right to:\n 1. Compare and negotiate the charges of different mortgage brokers and\nlenders to obtain the best loan possible.\n 2. Ask your mortgage broker to explain such person's responsibilities\nwithin the mortgage lending process.\n 3. Know how much the mortgage broker is compensated by you and the\nlender for your loan.\n 4. A clear and truthful explanation of the terms and conditions of the\nloan.\n 5. Know if the loan being offered is a fixed or adjustable rate\nmortgage loan, whether the loan can be transferred or refinanced, know\nthe exact amount of your monthly loan payments, including any projected\nescrow payments, know the final annual percentage rate (APR) and the\namount of regular payments at the loan's closing.\n 6. Ask for an estimate detailing all loan and settlement charges\nbefore you agree to the loan and pay any fees, including without\nlimitation loan application fees, title search and insurance fees,\nlender's attorney fees, property appraisal charges, inspections,\nrecording fees, late payment fees, transfer taxes, point and origination\nfees, escrow account balances, which services a loan applicant can shop\nfor and which they cannot, and you are entitled to receive such estimate\nwithin three business days of applying for a loan.\n 7. Obtain credit counseling before closing a loan.\n 8. Decide whether or not to finance any portion of the points or fees.\n 9. Refuse to purchase credit insurance for any mortgage loan.\n 10. Have your property appraised by an independent licensed\nprofessional and to receive a copy of the appraisal.\n 11. Not be subject to deceptive marketing practices.\n 12. Ask for the consumer financial protection bureau's booklet "Your\nhome loan toolkit".\n 13. Receive the following documents, and every document otherwise\nrequired to be given to you at closing under federal and New York state\nlaw:\n a. Loan estimate or good faith estimate depending on the loan you are\napplying for.\n b. Closing disclosure.\n 14. Know what deposits and fees are not refundable if you decide to\ncancel the loan agreement.\n 15. Receive in writing the reason for the denial or conditional\napproval of your loan application.\n 16. If refinancing, you may cancel a loan within three days of the\nclosing by providing written notification of cancellation to the\nlicensed lender or banking institution.\n 17. Receive the closing disclosure three days before the closing takes\nplace.\n 18. Have any lending disputes resolved in a fair and equitable manner.\n 19. A credit decision that is not based upon your race, color,\nnational origin, religion, sex, family status, sexual orientation,\ndisability or whether any income is from public assistance.\n 20. File a complaint with the department or the Consumer Financial\nProtection Bureau if you believe that a mortgage broker or any other\nentity licensed by the department or the Consumer Financial Protection\nBureau has violated any rules, regulations or laws which govern such\nperson's conduct in working with you to get or process a mortgage loan.\n 21. File a complaint with the New York state department of state or\nthe Consumer Financial Protection Bureau if you believe that a real\nestate broker has violated any rules, regulations or laws which govern\nsuch person's conduct in working with you to purchase a home."\n 3. The superintendent may modify the language of the pamphlet to\nensure that the pamphlet is accurate and consistent with applicable law.\n