Starting on June 11, 2025, NY residential real estate purchasers will receive a new pamphlet, called "What Mortgage Applicants Need to Know," pursuant to A9686.
This pamphlet is going to be created by the NYS Department of Financial Services and it will be available on the Department's Website - https://www.dfs.ny.gov/ where lenders have an affirmative duty to provide the form and put it on their website, as described in the law.
The pamphlet will equip all mortgage applicants, and especially non-English speaking homebuyers, with information on interest rates and market comparisons before they engage with lenders and bankers. Lenders and bankers are also required to provide buyers with the pamphlet.
Loan officers (LO) beware - this pamphlet directs consumers to file a complaint with CFPB if such consumer believes that such LO violated the law.
Real Estate Brokers beware - this pamphlet directs consumers to file a complaint with DOS if such consumer believes that such broker violated the law "in working with you to purchase a home," which is without limitation to lending.
In fact, the pamphlet, developed by the Department of Financial Services, must include the following minimum requirements:
"'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 MORT-
GAGE 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 LOAN ESTIMATE DETAILING ALL LOAN AND SETTLEMENT CHARGES
BEFORE YOU AGREE TO THE LOAN AND PAY ANY FEES, INCLUDING WITHOUT LIMITA-
TION 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 PROFES-
SIONAL 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,
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, DISA-
BILITY OR WHETHER ANY INCOME IS FROM PUBLIC ASSISTANCE.
20. FILE A COMPLAINT WITH THE DEP
ARTMENT 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."
