NY A06828

Establishes the "New York Sub-Prime Predatory Lending Prevention Act" defining sub-prime home loans as those exceeding thresholds for prepayment penalties (over 30 months or greater than 2%) or total points and fees (over 5% of loan amount).

Prohibits lenders and mortgage brokers from engaging in loan flipping, lending without regard to repayment ability, recommending default on existing debts, influencing appraisers, financing credit insurance premiums, and knowingly permitting false credit application information.

Requires lenders to provide borrowers with disclosures at least three business days before closing including annual percentage rate, payment amounts, variable rate information, county/zip code loan default data, and a warning notice about loss of home.

Establishes fiduciary duties for mortgage bankers and brokers including verification of borrower's ability to pay based on documented income, prohibition on steering borrowers to unfavorable terms, and liability for acts of mortgage brokers they employ.

Provides civil remedies including actual damages, statutory damages of $5,000 per violation or twice the points and fees (whichever is greater), attorney's fees, loan rescission, and foreclosure injunctions; permits private action within six years of loan origination and establishes criminal penalties up to $5,000 fine or six months imprisonment for knowing violations.