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Dear ESMBA Members,
In an effort to keep you informed of recent regulatory updates please see the "NEW" NYS Mortgage Disclosure Requirement effective 6/11/2025 outlined below.
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Date: April 21, 2025
Subject: Compliance Update – New NYS Mortgage Disclosure Requirement Effective
6/11/2025
Effective June 11, 2025, a new New York State law mandates that all licensed lenders, mortgage bankers, and banking institutions provide residential mortgage loan applicants with a standardized pamphlet titled:
“What Mortgage Applicants Need to Know”
This disclosure must be provided no later than the third business day after receiving the loan application.
Key Highlights:
- The New York State Department of Financial Services (NYDFS) will develop and publish the pamphlet on its website.
- It will be made available in English and the six most common non-English languages spoken by individuals with limited English proficiency in New York.
- The pamphlet may be delivered electronically to applicants.
Pamphlet contents will inform borrowers of their rights, including:
- Comparing lender fees and negotiating terms
- Understanding broker compensation and loan details
- Receiving timely and accurate disclosures like the Loan Estimate and Closing Disclosure
- Accessing credit counseling
- Appraisal rights
- Protection from deceptive marketing and discrimination
- Instructions for submitting complaints to NYDFS and CFPB
Action Required:
- Update your internal processes to ensure this pamphlet is delivered by the third business day post-application.
- Watch for publication of the official pamphlet on the NYDFS website.
- Confirm that your systems and compliance teams are ready to support this requirement across all delivery channels.
For questions or implementation guidance, please reach out to your compliance contact or legal advisor.
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