S 4340: Establishes the New American homebuyer assistance program within the state of New York mortgage agency to assist first time homebuyers by imposing flexible documentation guidelines that take into account foreign documentation of income and assets.

  
  STATE OF NEW YORK ________________________________________________________________________ 4340 2025-2026 Regular Sessions  IN SENATE February 4, 2025 ___________ Introduced by Sen. COMRIE -- read twice and ordered printed, and when printed to be committed to the Committee on Corporations, Authorities and Commissions AN ACT to amend the public authorities law, in relation to establishing the new American homebuyer assistance program within the state of New York mortgage agency The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The public authorities law is amended by adding a new 2 section 2428-b to read as follows: 3 § 2428-b. New American homebuyer assistance program. 1. Establish- 4 ment. The agency is hereby authorized and directed to create, manage, 5 and maintain the "new American homebuyer assistance program". The agen- 6 cy shall make such rules and regulations as necessary to implement the 7 new American homebuyer assistance program. The purpose of the program 8 is to provide homebuyer assistance to eligible homebuyers purchasing 9 their first residence by imposing flexible documentation guidelines that 10 take into account foreign documentation of income and assets. 11 2. Definitions. For purposes of this section: 12 (a) "Residence" means a single-family home, a one to four family home, 13 a condominium housing unit or a housing unit owned by a cooperative 14 housing corporation, that is located within the state. 15 (b) "Eligible homebuyer" means any person who (a) has not had any 16 ownership interest in their primary residence that is located within the 17 United States at any time during the three years prior to the date of 18 making an application for an agency mortgage loan; (b) is currently a 19 noncitizen admitted to the United States as a lawful permanent resident 20 within the past ten years; and (c) at the time of making the loan appli- 21 cation to the agency, does not own a vacation or investment home whether 22 such vacation or investment home is owned in the United States or 23 abroad. This includes a spouse or a single parent who has only owned 24 with a former spouse while married. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD05597-01-5 
 S. 4340 2 1 3. Program features and requirements. The agency shall create and 2 implement the new American homebuyer assistance program subject to the 3 following features and requirements: 4 (a) flexible documentation requirements that take into account foreign 5 documentation of income and assets; 6 (b) household income eligibility income limits up to one hundred thir- 7 ty percent of area median income; 8 (c) debt to income calculations that include the borrower's actual 9 student loan payments regardless of whether the payments will fully 10 amortize the loan, regardless of whether the borrower is on an income- 11 based or standard repayment plan; 12 (d) student loan payments calculated at the average monthly payment 13 amount made by the borrower during the preceding twelve months, or the 14 borrower's current payment, whichever is higher; 15 (e) loans will be offered for fixed interest rate, thirty-year terms 16 only; 17 (f) a loan-to-value ratio of ninety-seven percent; 18 (g) no prepayment penalties shall be assessed to the borrower; 19 (h) utilization of and full access to the agency down payment assist- 20 ance program financing; 21 (i) a call center to assist applicants; 22 (j) call center translation services shall be made available to appli- 23 cants in English, Spanish, and any other language that the agency deter- 24 mines, based on the size of the state population that speaks each 25 language and any other factor that the chair of the agency deems rele- 26 vant and; 27 (k) all guidance documents and application materials shall be avail- 28 able to applicants in English, Spanish, and any other language that the 29 agency determines, based on the size of the state population that speaks 30 each language and any other factor that the chair of the agency deems 31 relevant. 32 4. Eligibility. (a) In addition to other limitations, the new Ameri- 33 can homebuyer assistance program shall be available to an eligible home- 34 buyer only. 35 (b) The program shall only be available to a borrower if and so long 36 as the borrower occupied the agency-financed home as their permanent 37 residence. 38 (c) The program shall only be available to residences that do not 39 exceed the agency's purchase price/appraised value limits. 40 (d) Except as provided in the program features and requirements 41 contained in subdivision three of this section, the agency may implement 42 such procedures and requirements as necessary including, but not limited 43 to, outreach, education, counseling, and other borrower requirements or 44 disclosures. 45 5. Terms of financing. Notwithstanding any other provision of law, 46 the agency is authorized to require, as a condition to the financing of 47 any mortgage with respect to the new American homebuyer assistance 48 program, such restrictions upon assumability of the mortgage, default 49 provisions, rights to accelerate, and such other terms as the agency may 50 determine to be necessary or desirable. All such terms shall be 51 enforced by the originating bank, the agency, and any successor holder 52 of the mortgage unless expressly waived in writing by or on behalf of 53 the agency. Subject to the features and requirements of this section, 54 the agency may create and enforce credit underwriting standards as to 55 ensure the continued solvency of the program. 56 § 2. This act shall take effect immediately.