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

This bill (S 618) prohibits lenders from blocking a borrower’s access to funds in a credit line mortgage when the borrower is current on payments. It directly affects homeowners with existing credit line mortgages who might have faced sudden loss of access to their available funds. The key provision requires lenders to maintain access to these funds for on-time borrowers, removing the ability to revoke or restrict access solely due to the borrower’s current payment status. The law amends New York’s Banking Law and Real Property Law to enforce this requirement, effective immediately.