What's New? New York State requires lenders to honor payments according to their specific instructions

Recent legislative changes in New York State now mandate that mortgage lenders honor payments submitted according to their specific instructions. Under this updated law, financial institutions are strictly required to accept funds delivered to the designated location if the borrower followed the directions provided in a payoff statement. This measure ensures that homeowners can reliably settle their debt obligations without the risk of their payments being rejected unexpectedly. By enforcing compliance with these official documents, the state aims to provide greater legal protection and transparency for consumers during the loan satisfaction process. This development effectively prevents lenders from disregarding transactions that align with their own documented requirements.

For more details see the full amendment.