NY A04491

Prohibits mortgage brokers and bankers from engaging in home improvement contracting activities unless fully disclosed and agreed to in writing, and caps broker fees at the greater of $500 or 3% of the loan amount.

Requires mortgage lenders to limit total fees for loan services to 6% of loan value (excluding public filing fees, title insurance, and borrower's attorney fees) and restricts refinancing fees unless the borrower recovers costs within two years.

Bans specific mortgage provisions on primary residences including balloon payments, negative amortization schedules, and interest rate increases after default.

Mandates disclosure to loan applicants at application time regarding whether the loan will be sold and the right to designate a third party to receive communications; prohibits loan sale or enforcement for 30 days if disclosures are not made.

Extends home improvement contract cancellation rights from three to fifteen business days, requires written disclosure of all financing activities and fees, and establishes affirmative defenses in foreclosure proceedings for borrowers who cannot afford loans or were subjected to predatory lending practices.