NY A02063

Prohibits mortgage brokers, bankers, and exempt organizations from engaging in home improvement contracting activities and limits broker fees to the greater of $500 or 3% of the mortgage loan amount.

Caps total fees for mortgage loan services at 6% of the loan value (excluding public filing fees, title insurance, and borrower's attorney fees) and restricts refinancing fees to situations where the rate reduction exceeds costs and allows recovery within two years.

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

Requires mortgage lenders to disclose whether loans will be sold and allow borrowers to designate third parties to receive communications; extends home improvement contract cancellation rights from 3 to 15 business days.

Establishes affirmative defenses in foreclosure actions for borrowers who refinanced properties owned 5+ years, including inability to repay and lender violations, and allows courts to award attorney fees to successful defendants.