New York recently passed State Assembly Bill 9493 (AB-9493), containing amendments to New York’s banking law, executive law, and veterans’ services law. Included in the bill is the addition of a new section to the New York Banking Law titled 6-p. The new section creates a disclosure requirement for mortgage lending institutions and mortgage bankers that originate residential loans guaranteed under the Servicemen’s Readjustment Act of 1944.
A separate disclosure must be provided for each application when a loan for residential property will be guaranteed under the Servicemen’s Readjustment Act of 1944. The disclosure must state “that a veteran seeking a housing loan under chapter 37 of title 38 of the United States Code has been offered loan counseling services.” Also, the disclosure must be signed by each applicant and include information detailing how a veteran may access services from the New York Division of Veterans’ Services.
At the request of a veteran, the New York Division of Veterans’ Services will provide counseling and assistance regarding a home loan, including a review of the terms and restrictions of the loan. The counselors provided must be certified by the United States Department of Housing and Urban Development under Part 214 of Title 24 of the Code of Federal Regulations.
To satisfy the disclosure requirement under AB-9493, DocMagic will provide the New York Loan Counseling Notification (Form ID: NYLCN.MSC), in application and initial disclosure packages for New York VA loans beginning on the effective date of April 15, 2023.
