NY A06558

Prohibits mortgage brokers and bankers from engaging in home improvement contracting activities unless services are fully disclosed and agreed to in writing by all parties.

Caps mortgage broker fees at the greater of $500 or 3% of the loan amount, and limits all loan-related fees to 6% of loan value, excluding public filing fees, title insurance, and borrower's attorney fees.

Bans balloon payments, negative amortization schedules, and interest rate increases after default on mortgages secured by primary residences.

Requires lenders to disclose whether loans will be sold to third parties and allow borrowers to designate a third party to receive all written communications about the loan.

Extends home improvement contract cancellation period from 3 to 15 business days and establishes affirmative defenses for foreclosure actions on refinanced properties, including when borrowers lacked financial ability to repay or lender violated banking law provisions.