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New York Implements New Disclosure Requirement: “What Mortgage Applicants Need to Know”

June 15, 2025

As of June 11, 2025, lenders and banking organizations licensed under New York law are required to provide a standardized pamphlet titled “What Mortgage Applicants Need to Know” to any applicant for a residential mortgage loan. This new mandate, created under Assembly Bill A9686 and added as Section 35 of the New York Banking Law, is designed to ensure that mortgage applicants understand their rights and receive key disclosures early in the loan process.

The pamphlet was developed by the New York Department of Financial Services (NYDFS) and is available in multiple languages. It must be provided to applicants no later than three business days after receiving a loan application. Delivery may be electronic, including by email or via a hyperlink to the NYDFS website, so long as it follows the format prescribed by the Department.

1.Applicability and Best Practices

The new requirement applies to “Banking Organizations” as defined under New York law, which includes state-licensed banks, trust companies, savings banks, credit unions, and mortgage lenders. It does not apply to federally chartered institutions. Mortgage brokers are not explicitly required to comply, but NYDFS encourages them to voluntarily provide the pamphlet or a link to it, to help ensure that applicants are fully informed and that all parties adhere to fair lending best practices.

2.Pamphlet Content Overview

The pamphlet outlines 21 specific rights that borrowers have throughout the mortgage process. These include the right to compare loan terms, request detailed disclosures, understand broker compensation, and receive independent appraisals. Borrowers must also be informed about their ability to cancel a refinance within three days, receive a Closing Disclosure before closing, and avoid deceptive or discriminatory practices. The pamphlet reinforces borrower protections under both federal and state law, making it a valuable consumer-facing tool in the lending process.

3.Conclusion

This new requirement further underscores New York’s emphasis on borrower education and responsible lending. Licensed lenders should immediately review their disclosure workflows to ensure the pamphlet is included within the required timeframe. Although not mandatory for all institutions, offering this information helps promote transparency and reduce compliance risk—particularly in a diverse lending environment. As NYDFS adds new translations, staying current with updates will remain essential for mortgage professionals across the state.