NY A06083

Establishes the "Home Equity Fraud Act" to prevent predatory lending practices targeting senior citizens and minority homeowners through high-cost, high-interest mortgages secured by home equity.

Prohibits mortgage brokers from charging fees exceeding $500 or 3% of the loan amount, caps total service fees at 6% of loan value, and restricts refinancing fees unless the rate reduction exceeds costs and is recovered within two years.

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

Extends home improvement contract cancellation period from 3 to 15 business days and requires contractors to fully disclose financing activities and obtain written consent from all parties.

Establishes affirmative defenses in foreclosure actions for mortgagors who refinanced property owned for 5+ years, allowing courts to award attorney fees if lender violated lending laws or borrower lacked financial ability to repay.