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NY A05014
Bill
Status
2/10/2025
Primary Sponsor
Stefani Zinerman
Click for details
AI Summary
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Caps mortgage broker fees at the greater of $500 or 3% of the loan amount, and limits total loan service charges to 6% of the loan value (excluding government filing fees, title insurance, and borrower's attorney costs)
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Extends the cancellation period for home improvement contracts from 3 business days to 15 business days, requiring contractors to provide written notice of this right
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Prohibits certain mortgage provisions on primary residences, including balloon payments, negative amortization payment schedules, and interest rate increases triggered by default
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Requires lenders to disclose whether a mortgage loan will be sold to a third party and allows borrowers to designate a third party to receive copies of all loan-related communications
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Creates affirmative defenses in foreclosure actions when the lender knew or should have known the borrower lacked financial ability to repay, or when required mortgage payments exceeded 50% of the borrower's after-tax monthly income
Legislative Description
Enacts the "Home Equity Fraud Act" to control improper activities by home improvement contractors and finance companies; prohibits mortgage brokers or agents from acting as home improvement contractors; provides additional protections for mortgagors and homeowners.
Last Action
referred to banks
1/7/2026