Effective June 11, 2025, a new New York law requires licensed lenders, mortgage bankers, and banking institutions to provide residential mortgage loan applicants with a standardized disclosure pamphlet titled “What Mortgage Applicants Need to Know.” The pamphlet must be delivered no later than the third business day following receipt of a loan application.

The New York State Department of Financial Services (NYDFS) will publish the pamphlet on its website in English, as well as the six most common non-English languages spoken by individuals with limited English proficiency in New York. Electronic delivery of the pamphlet is permitted.

The pamphlet will advise borrowers of their rights, including: the ability to compare lender fees and negotiate loan terms; broker compensation transparency; receipt of timely disclosures such as the Loan Estimate and Closing Disclosure; access to credit counseling; appraisal rights; protection from deceptive marketing and discrimination; and instructions for submitting complaints to NYDFS and the CFPB.

Lenders should review and update internal procedures to ensure timely delivery of the pamphlet, monitor the NYDFS website for the final version, and confirm compliance readiness across all delivery methods.

Friedman Vartolo continues to monitor this development. Lenders and servicers are encouraged to review their existing application workflows to ensure compliance by the June 11, 2025 effective date.