2023 New York Laws › BNK - Banking › Article 12-D - Licensed Mortgage Bankers › 590-B - Responsibilities.

§  590-b. Responsibilities. 1. Each mortgage broker shall, in addition
to the duties imposed by otherwise applicable provisions  of  state  and
federal law, with respect to any transaction, including any practice, or
course  of  business  in  connection  with the transaction, in which the
mortgage broker solicits, processes, places or negotiates a home loan:
(a) act in the borrower's interest;
(b) act with reasonable skill, care and diligence;
(c) act in good faith and with fair dealing;
(d) not accept, give, or charge any undisclosed compensation, directly
or indirectly, that inures  to  the  benefit  of  the  mortgage  broker,
whether or not characterized as an expenditure made for the borrower;
(e)  clearly disclose to the borrower, not later than three days after
receipt of the loan application, all material information  as  specified
by   the   superintendent  that  might  reasonably  affect  the  rights,
interests, or ability of the borrower to receive the borrower's intended
benefit from the home loan, including total compensation that the broker
would receive from any of the loan options that the lender  or  mortgage
broker presents to the borrower; and
(f)  diligently  work  to  present  the  borrower with a range of loan
products  for  which  the  borrower  likely  qualifies  and  which   are
appropriate   to   the   borrower's  existing  circumstances,  based  on
information known by, or obtained in good faith by, the broker.
2. No lender or mortgage broker shall improperly influence or  attempt
to  improperly influence the development, reporting, result or review of
a real estate appraisal relating to real property securing a home  loan,
provided that it shall not be a violation of this prohibition to:
(a)  ask  an  appraiser  to  consider  additional  information about a
borrower's principal dwelling or about comparable properties;
(b) request that an appraiser provide additional information about the
basis for a valuation;
(c) request that an appraiser correct factual errors in a valuation;
(d) obtain multiple appraisals of a borrower's principal dwelling,  so
long  as  the lender or mortgage broker adheres to a policy of selecting
the most reliable appraisal, rather than the appraisal that  states  the
highest value;
(e)  withhold compensation from an appraiser for breach of contract or
substandard performance of services;
(f) terminate a relationship  with  an  appraiser  for  violations  of
applicable  state  or federal law or breaches of ethical or professional
standards; and
(g) take action permitted or required by applicable state  or  federal
statute, regulation, or agency guidance.
3.  Any  mortgage  broker found by a preponderance of evidence to have
violated subdivision one  of  this  section,  shall  be  liable  to  the
borrower for actual damages.
3-a.  In  connection  with  the making or brokering of a home loan, no
person may provide, and  no  mortgage  broker  or  mortgage  lender  may
receive,  directly  or indirectly, any compensation that is based on, or
varies with, the terms of any home  loan.  This  subdivision  shall  not
prohibit compensation based on the principal balance of the loan.
4.  Any lender or mortgage broker found by a preponderance of evidence
to have violated subdivision two of this section, shall be liable to the
borrower for actual damages.
5. A borrower may be granted injunctive, declaratory, and  such  other
equitable  relief as the court deems appropriate in an action to enforce
compliance with this section.
6. A court may also award reasonable attorneys' fees to  a  prevailing
borrower in a foreclosure action.
7.  The  attorney  general  or  the  superintendent  may  enforce  the
provisions of this section.
8.  The  remedies  provided in this section are not intended to be the
exclusive remedies available to a borrower.