Banks in New York will no longer charge mortgage fees for loans, Bloomberg reports.
The move is part of a broader effort to reduce costs for consumers and reduce the need for the city’s $3.6 trillion mortgage loan market.
Banks will also be required to allow borrowers to use credit cards on their mortgages.
Bloomberg’s story also notes that a number of smaller banks will now offer loan modifications and will also stop charging interest on mortgages.
The New York Fed notes that the move comes as banks continue to struggle with the fallout from the financial crisis.
In the aftermath of the crisis, banks have been forced to take more drastic action, including restructuring or closing businesses, limiting customer access to financial products, cutting back on services and limiting lending.
A similar proposal was recently put forward by New York Governor Andrew Cuomo, who has said that the state needs to make its banks more competitive, rather than the other way around.