The New York State Assembly is considering a bill that would require refinance lenders to provide a separate disclosure comparing monthly payments under the previous mortgage with the combined monthly payments for the new mortgage loan, property tax and insurance.
The bill, SB 99, is being sponsored by Sen. Kevin Thomas, D- Garden City.
The bill states, “For any refinancing of an existing mortgage loan, where the mortgagor will no longer be paying property tax or insurance payments into an escrow account, each mortgage broker, mortgage banker and exempt organization shall, prior to closing, provide a separate disclosure which compares the total monthly payments under the previous mortgage with the combined monthly payments for the new mortgage loan, real property taxes and insurance. The superintendent of financial services may specify the form, content and timing of the disclosure.”
The bill would take effect 180 days after its passage into law.