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S T A T E O F N E W Y O R K
________________________________________________________________________
9514
I N S E N A T E
March 19, 2026
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Introduced by Sen. KAVANAGH -- read twice and ordered printed, and when
printed to be committed to the Committee on Banks
AN ACT to amend the banking law, in relation to prohibiting certain
financial institutions from charging a fee for changing the frequency
of mortgage payments
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. The banking law is amended by adding a new section 9-aa to
2 read as follows:
3 § 9-AA. FEES FOR CERTAIN MORTGAGE PAYMENTS PROHIBITED. 1. NOTWITH-
4 STANDING ANY OTHER PROVISION OF LAW OR RULE OR REGULATION TO THE CONTRA-
5 RY, NO FINANCIAL INSTITUTION SUBJECT TO THE PROVISIONS OF THIS CHAPTER,
6 INCLUDING ANY BANKING ORGANIZATION, MORTGAGE BROKER OR MORTGAGE BANKER,
7 INTERSTATE BRANCH ESTABLISHED PURSUANT TO ARTICLE FIVE-C OF THIS CHAP-
8 TER, OR OTHER INVESTMENT ENTITY SUBJECT TO REGULATION BY THE DEPARTMENT,
9 WHICH PROVIDES AN ACCOUNT, MORTGAGE, OR MORTGAGE LOAN SERVICES TO A
10 CUSTOMER SHALL CHARGE A FEE FOR SUCH ACCOUNTHOLDER TO PAY THEIR MORTGAGE
11 MONTHLY, SEMI-MONTHLY, OR BIWEEKLY. SUCH PROHIBITED FEES SHALL INCLUDE,
12 BUT NOT BE LIMITED TO:
13 (A) ADDITIONAL COSTS, PAYMENTS, FEES, PENALTIES, OR PREMIUMS FOR
14 CHANGING BETWEEN MONTHLY, SEMI-MONTHLY, AND BIWEEKLY MORTGAGE PAYMENTS.
15 (B) PAYMENT OF AN ADDITIONAL MORTGAGE PAYMENT, OR ANY PART THEREOF,
16 BEFORE BEING PERMITTED TO CHANGE BETWEEN MONTHLY, SEMI-MONTHLY, AND
17 BIWEEKLY MORTGAGE PAYMENTS.
18 2. NOTWITHSTANDING ANY OTHER PROVISION OF LAW OR RULE OR REGULATION TO
19 THE CONTRARY, EACH FINANCIAL INSTITUTION SUBJECT TO THE PROVISIONS OF
20 THIS CHAPTER, INCLUDING ANY BANKING ORGANIZATION, MORTGAGE BROKER OR
21 MORTGAGE BANKER, INTERSTATE BRANCH ESTABLISHED PURSUANT TO ARTICLE
22 FIVE-C OF THIS CHAPTER, OR OTHER INVESTMENT ENTITY SUBJECT TO REGULATION
23 BY THE DEPARTMENT, WHICH PROVIDES A MORTGAGE OR MORTGAGE LOAN SERVICES
24 TO A CUSTOMER SHALL PROVIDE SUCH CUSTOMER WITH AN AMORTIZATION SCHEDULE
25 AND POTENTIAL INTEREST SAVINGS IF SUCH CUSTOMER WERE TO CHOOSE A MONTH-
26 LY, SEMI-MONTHLY, OR BIWEEKLY MORTGAGE PAYMENT SCHEDULE AND INFORMATION
27 ON HOW TO CHANGE TO A DIFFERENT PAYMENT SCHEDULE.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13935-01-5
S. 9514 2
1 3. IF ANY PROVISION OF THIS SECTION OR ITS APPLICATION TO ANY PERSON
2 OR CIRCUMSTANCE IS HELD INVALID, THE INVALIDITY DOES NOT AFFECT OTHER
3 PROVISIONS OR APPLICATION OF THIS SECTION WHICH CAN BE GIVEN EFFECT
4 WITHOUT THE INVALID PROVISION OR APPLICATION, AND TO THIS END THE
5 PROVISIONS OF THIS SECTION ARE SEVERABLE.
6 § 2. This act shall take effect on the one hundred eightieth day after
7 it shall have become a law.