New Mortgage Applicant Pamphlet Requirement on Residential Purchases

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."

Do Employment Discrimination Victims Need to File for Workers' Compensation to Win Big Emotional Distress Damages?

Victims of employment discrimination in New York will be well pressed to file for Workers' Compensation concerning any related emotional distress starting on January 1, 2025 or they will be very limited in recovering emotional distress damages as part of their discrimination claim.

Specifically, Workers' Compensation Law 10(3)(b) has been amended, by A5745, to permit all "worker[s to] file[] claim[s] for mental injury premised upon extraordinary work-related stress incurred at work."

Previously, the availability of Workers' Compensation for "mental injury premised upon extraordinary work-related stress" only applied to emergency service workers (police, firefighter, emergency medical technician, paramedic, & emergency dispatcher), but now it applies across the board to all workers. Moreover, Worker's Compensation for such mental injuries was previously limited to "work-related emergency" and now it just must occur "at work." This amended law is very broad and clearly applies to all workers for work related post-traumatic stress disorder (PTSD).

That all said, a worker seeking to obtain Workers' Compensation benefits for such mental injuries still has the burden of demonstrating a causal relationship supported by a rational basis between his work and his documented PTSD diagnosis. To prove this connection, a worker should hire both Workers' Compensation counsel and Employment Discrimination counsel as the two claims are now wholly interrelated and a failure of one will hurt the other and vice-versa. 

Learn more about the author of this blog here

Avoiding Discrimination in AI: CLE from Lieb at Law's Claudia Cannam

As artificial intelligence continues to transform industries, it also presents unique legal challenges, particularly in avoiding discriminatory practices embedded in AI systems. To help attorneys navigate these complexities, Lieb at Law Associate Claudia Cannam recently taught a 1-credit CLE course through Quimbee, titled “Avoiding Discrimination in AI.”

Avoiding Discrimination in AI: In order to navigate some of the legal challenges that come with new tech, you must understand the hidden biases in artificial intelligence systems and their legal impact. This course will dive into how AI discrimination occurs and its real-world consequences. We will review practical advice and strategies for avoiding discrimination when using AI.

Register Now: Attorneys can register for Claudia Cannam's Avoiding Discrimination in AI CLE course here.

Ted Cruz Protects Women - the Take It Down Act Passes Senate

Sponsored by Ted Cruz, the Take It Down Act (S4569) has passed the Senate and heads to the House so that a newly inaugurated President Trump can protect women from online sexual harassment, including revenge porn. 

Is Trump 2.0 going to be the protector of women? He did say that he is the protector of women “whether the women like it or not," maybe foreshadowing signing this bill? 

Anyway, to the law, it modifies the criminal prohibition on intentional disclosure of nonconsensual intimate visual depictions (47 USC 223) by inserting a new subsection (g). This new section includes penalties of up to 2 years in prison (3 if it involves a minor). Under the law, it's now (if signed by Trump) unlawful to use an interactive computer service to knowingly publish an intimate visual depiction of an identifiable individual where their was a reasonable expectation of privacy, amongst other crimes. Plus, there is a restitution section where victims can receive compensation for their pain, including for psychological care, lost income, and attorneys’ fees, plus any costs incurred in obtaining a civil protection order. 

To be clear, the law is not sex / gender specific and in fact, there is a section about utilizing a digital forgery of a person without consent, regardless if it it contains intimate depiction.

Think Disabled Employees Should be Paid AT LEAST Minimum Wage?

The Federal Department of Labor is seeking by Proposed Rulemaking to eliminate certificates that had allowed employers to pay productivity-based subminimum wages to workers with disabilities without violating the Fair Labor Standards Act. 

Think it's a good idea?

Regardless, think Trump thinks it's a good idea? 

Interesting time to make such a change given that Trump likes that cheap labor regardless that the purpose of the curtailments was altruistic in creating opportunities for employment for the disabled. 

Anyway, you can share your thoughts on or before January 17, 2025, identified by Regulatory Information Number (RIN) 1235-AA14, by either of the following methods:

• Electronic Comments: Submit comments through the Federal eRulemaking Portal at https://www.regulations.gov. Follow the instructions for submitting comments.
• Mail: Address written submissions to: Division of Regulations, Legislation, and Interpretation, Wage and Hour Division, U.S. Department of Labor, Room S-3502, 200 Constitution Avenue NW, Washington, DC 20210.

New NYS Law Protects Against Hate Crimes Targeting Religious Attire Creating Evidence of Discrimination

New York State is taking a strong stand against hate crimes and by doing so, are enhancing discrimination claims in the workplace, in housing, and in education. Specifically, starting on November 26, 2024, it became a crime to remove or threaten to remove someone's religious attire. 

The new law (S05302) amends Section 240.30 of the New York Penal Law, which defines certain acts of aggravated harassment as crimes. The amendment explicitly makes it a crime to remove or threaten to remove a person's "religious clothing article or headdress" with the intent to harass, annoy, threaten, or alarm them and be motivated by a belief or perception about the person's:

• Race
• Color
• National Origin
• Ancestry
• Gender
• Gender Identity or Expression
• Religion
• Religious Practice
• Age
• Disability 
• Sexual Orientation

Because such topics are protected classes under the New York State Human Rights Law (protecting against discrimination in employment, housing, and education), the act of the assailant in forcibly removing a person's hijab, turban, kippah, and the like, will render discrimination claims much stronger with the presence of this new law.

Stated otherwise, if you or someone you know has experienced harassment or discrimination related to religious attire, this new law provides a clear path for seeking justice—don’t hesitate to take action and protect your rights.