New York Senate Bill S09514

New York 2025-2026 Regular Session

• Introduced: 3/19/26
• Refer: 3/19/26

Caption

Prohibits certain financial institutions from charging a fee for making monthly, semi-monthly, and biweekly payments or for changing the frequency of mortgage payments.

Impact

If enacted, S09514 would significantly reshape the relationship between mortgagors and mortgage payment servicers by enhancing consumer protections. This means that individuals will have the right to choose their preferred payment schedule without the burden of incurring extra fees, thus providing more financial flexibility for homeowners. Furthermore, the requirements to inform mortgagors of their rights and payment options will likely benefit consumers, ensuring they can make informed decisions regarding their mortgages. The bill is positioned as a consumer-friendly measure intended to promote fair lending practices and financial transparency.

Summary

Bill S09514-A proposes to amend the banking law in New York to prohibit certain financial institutions from charging fees related to the frequency of mortgage payments. The bill specifically targets mortgage payment servicers, which are entities that service mortgage loans and includes various definitions to clarify which institutions fall under this regulation. This legislation aims to prevent additional costs imposed on mortgagors for choosing how often they make their mortgage payments, such as monthly, semi-monthly, or biweekly schedules. The bill also mandates servicers to provide mortgagors with information regarding their payment options and potential interest savings when altering their payment frequency.

Contention

While proponents of the bill argue that it will alleviate financial burdens on homeowners and enhance consumer rights within the mortgage landscape, there may be concerns from financial institutions regarding the potential impact on their revenue streams. The restrictions on fees could limit the ability of mortgage servicers to charge for services they provide, potentially leading to pushback from the banking sector. Legislative discussions may center on striking a balance between protecting consumer rights and maintaining the viability of financial institutions that operate within the housing market.