New York Senate Bill S00618

New York 2025-2026 Regular Session

• Introduced: 1/8/25
• Refer: 1/8/25
• Refer: 1/7/26

Caption

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

Summary

Bill S00618 amends the banking law and real property law in New York to enhance protections for borrowers with credit line mortgages. Specifically, it prohibits savings and loan associations and authorized lenders from revoking or blocking a borrower's access to credit financing if the borrower is current on their repayment obligations. This measure aims to ensure that homeowners can maintain access to necessary funds without the risk of sudden withdrawal of credit, which can be particularly crucial in times of financial uncertainty.

Impact

The bill will impact state laws by reinforcing borrower rights in relation to credit line mortgages. It modifies existing provisions in the banking law and real property law to explicitly prevent lenders from restricting access to credit based solely on the borrower's current repayment status. This change is expected to provide greater financial stability for homeowners and may influence lending practices across the state.

Sentiment

The general sentiment surrounding Bill S00618 appears to be supportive, as it seeks to protect consumers from potential financial distress caused by lenders' actions. However, there may be concerns from financial institutions regarding the implications of limiting their ability to manage credit risk, which could lead to a more cautious approach to lending.

Contention

Notable points of contention may arise from lenders who argue that the bill could expose them to increased risk by preventing them from managing their credit lines effectively. Conversely, consumer advocacy groups are likely to support the bill, emphasizing the need for borrower protections in the face of economic challenges.