state_legiscan_drain · NY
Prohibits pre-payment penalties for mortgages secured by real property owned in a cooperative form of ownership where over fifty percent of the units are shareholder occupied.
April 6, 2026
Summary
If enacted, this bill would prohibit prepayment penalties for mortgages secured by cooperative apartments where over 50% of units are shareholder-occupied. This applies to lenders and servicers originating or servicing such co-op loans in New York, eliminating a common fee for early repayment.
Source: https://www.nysenate.gov/legislation/bills/2025/S9796
Common questions
- What does "Prohibits pre-payment penalties for mortgages secured by real property owned in a cooperative form of ownership where over fifty percent of the units are shareholder occupied." cover?
- If enacted, this bill would prohibit prepayment penalties for mortgages secured by cooperative apartments where over 50% of units are…
- When was it published?
- It was published on April 6, 2026.