New York S 9514: Prohibits certain financial institutions from charging a fee based on the frequency of payments or for changing the frequency of mortgage payments

Bill Text

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S09514 Summary:

BILL NOS09514A

&nbsp

SAME ASSAME AS A09588-B

&nbsp

SPONSORKAVANAGH

&nbsp

COSPNSRFAHY

&nbsp

MLTSPNSR

&nbsp

Add §9-aa, Bank L

&nbsp

Prohibits certain financial institutions from charging a fee for making monthly, semi-monthly, and biweekly payments or for changing the frequency of mortgage payments.

Go to top S09514 Actions:

BILL NOS09514A

&nbsp

03/19/2026REFERRED TO BANKS

03/30/2026AMEND (T) AND RECOMMIT TO BANKS

03/30/2026PRINT NUMBER 9514A

05/12/20261ST REPORT CAL.1032

05/13/20262ND REPORT CAL.

05/14/2026ADVANCED TO THIRD READING 

05/29/2026SUBSTITUTED BY A9588B

&nbspA09588 AMEND=B Torres

&nbsp01/21/2026referred to banks

&nbsp03/18/2026amend (t) and recommit to banks

&nbsp03/18/2026print number 9588a

&nbsp03/24/2026reported referred to codes

&nbsp04/06/2026amend and recommit to codes

&nbsp04/06/2026print number 9588b

&nbsp04/21/2026reported 

&nbsp04/23/2026advanced to third reading cal.373

&nbsp05/28/2026passed assembly

&nbsp05/28/2026delivered to senate

&nbsp05/28/2026REFERRED TO BANKS

&nbsp05/29/2026SUBSTITUTED FOR S9514A

&nbsp05/29/20263RD READING CAL.1032

&nbsp05/29/2026PASSED SENATE

&nbsp05/29/2026RETURNED TO ASSEMBLY

Go to topS09514 Committee&nbspVotes:

Go to topS09514 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS09514 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 9514--A

 IN SENATE

 March 19, 2026
 ___________

 Introduced by Sen. KAVANAGH -- read twice and ordered printed, and when
 printed to be committed to the Committee on Banks -- committee
 discharged, bill amended, ordered reprinted as amended and recommitted
 to said committee

 AN ACT to amend the banking law, in relation to prohibiting certain
 financial institutions from charging fees based on the frequency of
 mortgage payments or changing such payment schedule

 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. For the
 4 purposes of this section, the following terms shall have the following
 5 meanings:
 6 (a) "Mortgage payment servicer" shall mean a mortgage loan servicer as
 7 defined in section five hundred ninety of this chapter, any banking
 8 organization, a licensed mortgage banker pursuant to article twelve-D of
 9 this chapter, an interstate branch established pursuant to article
 10 five-C of this chapter, or other person or entity, to the extent such
 11 person or entity, directly or indirectly, services, administers, or
 12 processes payments on a mortgage loan. Such term shall not include any
 13 national bank, federal savings bank, federal savings and loan asso-
 14 ciation, federal credit union, or any entity chartered or licensed by
 15 the United States;
 16 (b) "Monthly" shall mean once per calendar month;
 17 (c) "Semi-monthly" shall mean twice per calendar month; and
 18 (d) "Biweekly" shall mean once every fourteen days.
 19 2. (a) Notwithstanding any other provision of law or rule or regu-
 20 lation to the contrary, no mortgage payment servicer shall, directly or
 21 indirectly, charge a fee or other charge to a mortgagor for making
 22 payments on a mortgage loan on a monthly, semi-monthly, or biweekly
 23 schedule.
 24 (b) Such prohibited fees or other charges shall include, but not be
 25 limited to:

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD13935-04-6

 S. 9514--A 2

 1 (i) additional costs, payments, fees, penalties, or premiums for
 2 changing between monthly, semi-monthly, and biweekly mortgage payment
 3 plans; and
 4 (ii) payment of an additional principal or interest payment on a mort-
 5 gage, or any part thereof, as a condition for changing a mortgage
 6 payment schedule, except to the extent necessary to align the mortgage
 7 with the new payment schedule.
 8 3. (a) No mortgage payment servicer shall prohibit a mortgagor from
 9 electing to pay a mortgage on a monthly, semi-monthly, or biweekly sche-
 10 dule. A mortgage payment servicer shall permit a mortgagor to change the
 11 frequency of such mortgagor's mortgage payments