As previously discussed here, New York passed State Assembly Bill 9433 (AB-9493) this year, which contains amendments to New York’s banking law, executive law, and veterans’ services law. The bill added new section 6-p to the New York Banking Law, which includes a disclosure requirement for mortgage lending institutions and mortgage bankers that originate residential loans guaranteed under the Servicemen’s Readjustment Act of 1944. To comply with the April 15, 2023 effective date, DocMagic added new form New York Loan Counseling Notification (Form ID: NYLCN.MSC) to applicable packages.
The New York State Department of Financial Services recently published a model form to satisfy the requirements of N.Y. Banking Law § 6-p, entitled “New York Counseling Disclosure Form for Loans Guaranteed Under Servicemen’s Readjustment Act of 1944.” The new model form includes a notification that is not provided in the New York Loan Counseling Notification, which reads “THIS IS AN IMPORTANT DISCLOSURE. DO NOT SIGN THIS FORM UNTIL YOU HAVE CAREFULLY READ IT AND UNDERSTAND ITS CONTENTS.” Additionally, the model form provides contact information for the Section 501(c)(3) not-for-profit organization Home for loan counseling services instead of the New York Division of Veteran’s Services.
Beginning on August 3, 2023, DocMagic will replace the current form with the New York Counseling Disclosure Form for Loans Guaranteed Under Servicemen’s Readjustment Act of 1944 (Form ID: NYCDF.MSC), in application and initial disclosure packages for New York VA loans.
If you have any questions, please contact DocMagic’s Compliance Department.
