New York Assembly Bill A01716

New York 2025-2026 Regular Session

• Introduced: 1/14/25
• Refer: 1/14/25
• Refer: 1/7/26

Caption

Prohibits lenders from blocking access to funds from a credit line mortgage.

Summary

This bill amends the Banking Law and the Real Property Law to protect borrowers with credit line mortgages, including home equity-style credit arrangements tied to residential real estate. It provides that a savings and loan association or other authorized lender may not revoke, suspend, or otherwise block a borrower’s access to the credit line if the borrower is current on repayment obligations related to the loan. The bill also updates existing authority for savings and loan associations to invest in certain line-of-credit financing for residential real estate, clarifying that such financing may be based on the borrower’s general credit standing or other repayment assurances, with or without security. The measure takes effect immediately and is aimed at ensuring that borrowers who remain in good standing can continue to draw on approved credit line mortgage funds.

Impact

The bill would change New York banking and real property law by expressly prohibiting lenders from cutting off access to a credit line mortgage or similar residential real estate credit facility when the borrower is not delinquent. It would apply to savings and loan associations and other authorized lenders offering these products, and would strengthen borrower access to available funds under existing credit line mortgage agreements. In practical terms, it would limit lender discretion to freeze or revoke draws on these accounts solely while the borrower remains current.

Sentiment

Based on the bill’s caption and text, the measure appears consumer-protective and borrower-friendly, with an emphasis on preserving access to home equity credit for homeowners who are meeting their repayment obligations. No committee transcript or vote data was provided, so there is no recorded legislative debate or roll-call history to indicate broader support or opposition. The available context suggests the bill is framed as a straightforward protection against lender blocking of funds rather than a controversial restructuring of mortgage law.

Contention

The main potential point of contention is the restriction on lender control over credit line mortgages: lenders may argue that they need flexibility to manage risk, respond to changes in property value, or comply with underwriting and servicing standards, while borrowers and consumer advocates would likely support guaranteed access so long as payments are current. Another possible issue is how the prohibition would interact with existing contractual terms, default triggers, or lender rights under federal and state law. Because no discussion transcript is available, specific sponsors’ or opponents’ positions are not documented in the provided materials.