NY Real Prop Tax L § 953 (2021)
2021 New York Laws RPT - Real Property Tax Article 9 - Levy and Collection of Taxes Title 3-A - Real Property Tax Escrow Accounts 953 - Duties and Responsibilities of Mortgage Investing Institutions.

§ 953. Duties and responsibilities of mortgage investing institutions. 1.  Every  mortgage  investing  institution  shall make all payments for taxes for which they hold real property tax escrow accounts, in a timely manner.   2. Every mortgage investing institution subject to the  provisions  of section  fourteen-b  of  the  banking law shall pay at least the minimum rate of interest on each real property tax escrow account as  prescribed therein except that any such mortgage investing institution shall not be required  to  pay  such  minimum  rate  of interest on real property tax escrow accounts established for non-mortgagors.   3. Every mortgage investing institution shall  deposit  funds  from  a real property tax escrow account of a mortgagor in a banking institution whose deposits are insured by a federal agency or a licensed branch of a foreign  banking  corporation  whose  deposits  are insured by a federal agency. Notwithstanding the foregoing provisions  of  this  subdivision, the  superintendent of financial services shall have the power to exempt from the requirements of this subdivision any banking organization which does not receive deposits or share accounts from the general public.   4. No mortgage investing institution shall impose a service charge  or any  other fee in connection with the maintenance of a real property tax escrow account nor, as provided in section two hundred  fifty-four-d  of the real property law, shall a fee be imposed for direct payment of real property taxes.   5.  A  mortgage  investing  institution  may  debit a mortgagor's real property tax escrow account for payments of taxes only if actual payment for such taxes is made within twenty-one days after such debit.   6. Every mortgage investing institution shall, at least  annually  and without charge to the mortgagor, provide to the mortgagor an analysis of the  real  property  tax  escrow account of the mortgagor. Such analysis shall contain, for the twelve month period covered by the  analysis,  at least:  (i) interest earned; (ii) the amount of taxes paid from the real property tax escrow account; and (iii) the account  balance  as  of  the beginning  of  the  period  the  analysis  covers and the ending account balance as of a specified date within forty-five days preceding the date of the analysis. In addition, the mortgage investing institution  shall, upon  request  by the mortgagor, provide to the mortgagor without charge the date or dates of the payment of taxes from such  real  property  tax escrow  account.  The  information  required  by this subdivision may be provided  in  notices  otherwise  required  by  federal  or  state  law, regulation  or  rule  to  be  sent  on  at  least an annual basis to the mortgagor. The analysis shall also contain the following information  in at  least  eight  point  bold  face  type in substantially the following language:  (a) that the mortgage investing institution is obligated to  make  all payments  for  taxes  for  which the real property tax escrow account is maintained and that if any such payments are not  timely,  the  mortgage investing  institution is responsible for making such payments including any penalties and interest;  (b) that the mortgagor is obligated to pay one-twelfth  of  the  taxes each month to the mortgage investing institution which is deposited into the  real  property  tax escrow account, unless there is a deficiency or surplus in the account, in which case a greater or lesser amount may  be required;  (c) if the mortgage investing institution is subject to the provisions of  subdivision  three  of  this  section,  that  the mortgage investing institution must deposit the escrow payments made by the mortgagor in  a banking   institution   or  a  licensed  branch  of  a  foreign  banking corporation whose deposits are insured by a federal agency; and  (d) that the mortgage investing institution  cannot  impose  any  fees relating to the maintenance of the real property tax escrow account.   6-a.  Every mortgage investing institution shall upon the request of a borrower who has been notified of the granting of an exemption  pursuant to  section  four  hundred  twenty-five  of  this  chapter to review the expected real property tax  liability  which  is  assessable  against  a property  which  is a one, two or three family dwelling and which is the primary residence of the borrower. In any case, where as the  result  of the granting of such exemption an overage in the escrow shall exist, the owner  shall be entitled to a proportionate reduction in the amount such mortgage investing institution is authorized to collect and deposit on a monthly basis into an escrow account  to  insure  the  payment  of  real property  taxes.  This  review shall be considered maintenance of a real property tax escrow account.   7. Every mortgage investing institution shall provide  written  notice to  a  mortgagor  no  later than ten business days after the transfer to another mortgage investing institution  of  the  right  to  receive  all payments  from  the  mortgagor,  including  payments  made into the real property tax escrow  account,  which  notice  shall  include  the  name, address  and  telephone  number of the mortgage investing institution to which such rights have been transferred. Upon request by the  mortgagor, the  mortgage  investing  institution  shall advise the mortgagor of the amount of money in such account as of the date of such  transfer.  Every mortgage  investing  institution  shall  remain  fully liable to pay any taxes which are due and payable prior to the date of such transfer,  and the  mortgage  investing  institution  to  which  such  rights have been transferred shall be liable to pay any taxes which are due  and  payable after  the  date  of  such  transfer,  unless otherwise agreed among the parties to the transfer.   8.  Every  mortgage  investing  institution  shall,  no   later   than twenty-one  days after the final payment of the mortgage loan, where the mortgagor retains ownership of the property, send  to  the  mortgagor  a written  statement  that  shall  include,  but  not  be  limited  to the following information: (a) that the real property tax escrow account has been or will be terminated  (whichever  is  applicable);  and  (b)  that unless  the mortgagor establishes a new real property tax escrow account with a mortgage investing institution, the mortgagor will be obliged  to pay   to   the   appropriate  collecting  officers  taxes  becoming  due thereafter. The written notice shall also set forth the  effective  date of  the  termination  and  shall provide the name, address and telephone number of each collecting officer or office and advise the mortgagor  to contact such officer or office for tax billing information.   8-a. Any mortgage investing institution which does not comply with the provisions  of  subdivision  eight  of this section shall be financially responsible for interest or penalties charged a former mortgagor of such institution by a taxing  municipality,  county,  and/or  delinquent  tax enforcement  agency  for  non-payment  or  late payment of real property taxes in the first taxable year following satisfaction of  the  mortgage held by such institution.   9.  Every  mortgage  investing  institution  shall,  no later than the twenty-fifth day of each month, report to the county  director  of  real property  tax  services,  or  the  commissioner  of finance for property located in the city of New York, on a form prescribed or approved by the commissioner, the creation of a real property tax escrow account, or any change of a tax billing address required by a transfer or termination of a real property tax escrow account pursuant to  subdivisions  seven  and eight  of this section, occurring during the prior month with respect to real property located in such county or city, as the case  may  be.  The  county  director  or the commissioner of finance of the city of New York shall thereupon furnish a copy of such report to the person  or  persons having  custody and control of the appropriate assessment roll, tax roll or  data  file, as defined in section fifteen hundred eighty-one of this chapter, and such person or persons are hereby authorized  and  directed upon receipt of such report to enter the appropriate tax billing address on such assessment roll, tax roll or data file.