NY SB S1566A was signed into law on November 3, 2021, adding Section 129-a to the New York Banking Law. The new law, which became effective on February 1, 2022, requires a notification be provided if any “bank” or “trust company” permits a customer to establish an alternative payment schedule for an existing loan. In those circumstances, the “bank” or “trust company” must provide written notification that accepting such alternative payment schedule may have a negative impact the customer’s credit score or rating.
This notification must be provided:
- At the time a loan application is made,
- At the time a loan is granted,
- And at the time a customer requests that an alternative payment schedule be established for a loan, but prior to the actual establishment of an alternative payment schedule.
We have created a “NY Alternative Payment Schedule Notice” (CX 25560) to meet these requirements. This disclosure is required to be given by “banks” or “trust companies” organized under article three of the New York Banking Law. Most of Docutech’s clients are not registered under this chapter but are registered as mortgage bankers or brokers under article 12-D of the Banking Law or are exempt. Therefore, we will be configuring this form as a generic “upon request” form. If you are interested in utilizing this form, please contact client support.
These changes will be in effect on March 12, 2022. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.