2023 New York Laws › PBA - Public Authorities › Article 8 - Miscellaneous Authorities › Title 17 - State of New York Mortgage Agency Act › Part 1 › 2402 - Definitions.

§  2402.  Definitions.  As used in this title, the following words and
terms shall  have  the  following  meanings  unless  the  context  shall
indicate another or different meaning or intent:
(1)  "Agency".  The  state  of New York mortgage agency, the corporate
governmental agency created by section two thousand four  hundred  three
of this title.
* (2)  "Bank".  Any  bank  or trust company, savings bank, savings and
loan  association,  industrial  bank,  credit  union,  national  banking
association,  federal savings and loan association, federal savings bank
or federal credit union which is located in the state. The  term  "bank"
shall  also  include  a  New  York  state licensed mortgage banker, or a
domestic  not-for-profit  corporation  whose  public  purposes   include
combatting  community  deterioration and which is an exempt organization
as defined in paragraph (e) of subdivision one of section  five  hundred
ninety of the banking law, or an entity exempt from licensing provisions
in  accordance  with  paragraph  (a) of subdivision two of such section,
which in any such case is approved as a mortgage lender by  the  Federal
National  Mortgage  Association  or  by  the  Federal Home Loan Mortgage
Corporation, or domestic not-for-profit corporations that are  certified
by  the  United  States  department of treasury as community development
financial institutions or licensed by the New York state  department  of
financial services.
* NB Effective until July 23, 2025
* (2)  "Bank".  Any  bank  or trust company, savings bank, savings and
loan  association,  industrial  bank,  credit  union,  national  banking
association,  federal  savings  and  loan  association or federal credit
union which is located in the state.
* NB Effective July 23, 2025
(3) "Bonds" and "Notes". The bonds and notes  respectively  issued  by
the agency pursuant to this title.
(4) "Comptroller". The comptroller of the state.
* (5) "Mortgage". A loan owed to a bank secured by a first lien on (i)
a  fee  simple  or  leasehold estate in real property, or (ii) any other
instrument which shall constitute  or  create  a  security  interest  in
tangible personal property constituting modular or manufactured housing,
located  in  the  state  and  improved by a residential structure or, on
which a residential  structure  for  use  as  single-family  modular  or
manufactured  housing  purchased  and sited on land shall be constructed
using the proceeds of such loan, whether or not insured or guaranteed by
the United States of America or any agency thereof. The term  "mortgage"
shall also include a loan owed to a bank secured by a second lien on (i)
a  fee  simple  or  leasehold estate in real property, or (ii) any other
instrument which shall constitute  or  create  a  security  interest  in
tangible personal property constituting modular or manufactured housing,
located in the state and improved by a residential structure or on which
a residential structure for use as single-family modular or manufactured
housing  purchased  and  sited  on  land  shall be constructed using the
proceeds of the related loan described in paragraph (a) or (b)  of  this
subdivision,  whether  or not insured or guaranteed by the United States
of America or any agency thereof, provided, however,  that  such  second
lien: (a) secures a loan purchased by the agency, and (b) is made at the
same  time  as  a  first  lien  securing  a loan purchased by the agency
pursuant to its programs or by a government sponsored enterprise  or  is
made  at  the  same  time  as a new housing loan purchased by the agency
pursuant to section twenty-four hundred five-c of this  part.  The  term
"mortgage"  shall also include loans made by the agency and secured by a
second lien on (i) a fee simple or leasehold estate in real property, or
(ii) any other instrument which shall constitute or  create  a  security

interest   in   tangible   personal  property  constituting  modular  or
manufactured housing, located in the state and improved by a residential
structure or on which a residential structure for use  as  single-family
modular  or  manufactured  housing  purchased and sited on land shall be
constructed using the proceeds of such loan, whether or not  insured  or
guaranteed  by  the  United  States  of  America  or any agency thereof,
provided however, that the loan made by the agency and secured  by  such
second lien is made at the same time as a first lien securing a mortgage
loan purchased by the agency pursuant to its programs or by a government
sponsored  enterprise.  In the case of any second lien purchased or made
hereunder, the mortgagor shall be obligated to contribute  from  his  or
her  own verifiable funds an amount not less than such percentage as the
agency shall determine, of the lower of the purchase price or  appraised
value of the property subject to the first lien. "Real property" as used
in this subdivision shall include air rights.
For  the  purposes  of  this  title and subdivision ten of section two
hundred ten-B of the tax law, "mortgage" shall include housing loans  as
defined  below.  Except for the purposes of subdivision seven of section
twenty-four hundred five and subdivision eight  of  section  twenty-four
hundred  five-b  of this part, "mortgage" shall also include a loan owed
to a bank  by  an  individual  borrower  incurred  for  the  purpose  of
financing  the  purchase  of  certificates of stock or other evidence of
ownership of an interest in, and a proprietary lease from, a cooperative
housing corporation formed for the purpose of the cooperative  ownership
of  residential  real  estate  in the state, secured by an assignment or
transfer of the benefits of such cooperative ownership,  and  containing
such terms and conditions as the agency may approve.
* NB Effective until July 23, 2025
* (5)  "Mortgage".  A loan owed to a bank secured by a first lien on a
fee simple or leasehold estate in real property located in the state and
improved  by  a  residential  structure,  whether  or  not  insured   or
guaranteed  by  the  United States of America or any agency thereof. The
term "mortgage" shall also include a loan owed to a bank  secured  by  a
second lien on a fee simple or leasehold estate in real property located
in  the  state  and  improved by a residential structure, whether or not
insured or guaranteed by the United States  of  America  or  any  agency
thereof,  provided,  however,  that such second lien: (a) secures a loan
purchased by the agency, and (b) is made at the same  time  as  a  first
lien securing a loan purchased by the agency pursuant to its programs or
by  a  government  sponsored enterprise or is made at the same time as a
new housing loan purchased by the agency pursuant to section twenty-four
hundred five-c of this part. The  term  "mortgage"  shall  also  include
loans made by the agency and secured by a second lien on a fee simple or
leasehold estate in real property located in the state and improved by a
residential  structure,  whether  or  not  insured  or guaranteed by the
United States of America or any agency thereof, provided  however,  that
the  loan  made by the agency and secured by such second lien is made at
the same time as a first lien securing a mortgage loan purchased by  the
agency pursuant to its programs or by a government sponsored enterprise.
In  the  case  of  any  second  lien  purchased  or  made hereunder, the
mortgagor  shall  be  obligated  to  contribute  from  his  or  her  own
verifiable  funds  an amount not less than such percentage as the agency
shall determine, of the lower of the purchase price or  appraised  value
of  the  property  subject to the first lien. "Real property" as used in
this subdivision shall include air rights.
Except for the purposes of subdivision seven of section  two  thousand
four  hundred  five  of  this part, "mortgage" shall also include a loan
owed to a bank by an individual borrower incurred  for  the  purpose  of

financing  the  purchase  of  certificates of stock or other evidence of
ownership of an interest in, and a proprietary lease from, a cooperative
housing corporation formed for the purpose of the cooperative  ownership
of  residential  real  estate  in the state, secured by an assignment or
transfer of the benefits of such cooperative ownership,  and  containing
such terms and conditions as the agency may approve.
* NB Effective July 23, 2025 until July 23, 2025
* (5)  "Mortgage".  A loan owed to a bank secured by a first lien on a
fee simple or leasehold estate in real property located in the state and
improved  by  a  residential  structure,  whether  or  not  insured   or
guaranteed  by  the  United States of America or any agency thereof. The
term "mortgage" shall also include a loan owed to a bank  secured  by  a
second lien on a fee simple or leasehold estate in real property located
in  the  state  and  improved by a residential structure, whether or not
insured or guaranteed by the United States  of  America  or  any  agency
thereof,  provided,  however,  that such second lien: (a) secures a loan
purchased by the agency, and (b) is made at the same  time  as  a  first
lien securing a loan purchased by the agency pursuant to its programs or
is  made  at the same time as a new housing loan purchased by the agency
pursuant to section twenty-four hundred five-c of this  part.  The  term
"mortgage"  shall also include loans made by the agency and secured by a
second lien on a fee simple or leasehold estate in real property located
in the state and improved by a residential  structure,  whether  or  not
insured  or  guaranteed  by  the  United States of America or any agency
thereof, provided however, that the loan made by the agency and  secured
by  such second lien is made at the same time as a first lien securing a
mortgage loan purchased by the agency pursuant to its programs or  by  a
government  sponsored  enterprise.  In  the case of any second lien, the
mortgagor  shall  be  obligated  to  contribute  from  his  or  her  own
verifiable  funds  an amount not less than such percentage as the agency
shall determine, of the lower of the purchase price or  appraised  value
of  the  property  subject to the first lien. "Real property" as used in
this subdivision shall include air rights.
Except for the purposes of subdivision seven of section  two  thousand
four  hundred  five  of  this part, "mortgage" shall also include a loan
owed to a bank by an individual borrower incurred  for  the  purpose  of
financing  the  purchase  of  certificates of stock or other evidence of
ownership of an interest in, and a proprietary lease from, a cooperative
housing corporation formed for the purpose of the cooperative  ownership
of  residential  real  estate  in the state, secured by an assignment or
transfer of the benefits of such cooperative ownership,  and  containing
such terms and conditions as the agency may approve.
* NB Effective July 23, 2025
(6) "State". The state of New York.
(7) "State agency". Any office, department, board, commission, bureau,
division, public corporation, agency or instrumentality of the state.
(8)  "College".  Any  institution  of  higher education recognized and
approved as such by the regents of the university  of  the  state  which
provides  a  course of study leading to the granting of a post-secondary
degree or diploma.
(9) "Career  institution".  A  business,  trade,  technical  or  other
occupational school approved as such by the regents of the university of
the state or accredited by a nationally recognized accrediting agency or
association  accepted  as  such  by the regents of the university of the
state.
(10) "Loan". A loan which the New  York  higher  education  assistance
corporation  has  guaranteed  or agreed to guarantee pursuant to article
fourteen of the education law to a person who is attending or  plans  to

attend,  on  a  full-time  or  part-time  basis,  a  college  or  career
institution, for the purpose  of  assisting  such  person  to  meet  his
expenses  of  higher or career education; provided, however, in no event
shall  the  amount of any such loan for any school year exceed the total
amount of (i) the borrower's tuition and educational fees payable to the
college or career institution he is attending or is planning to  attend,
and  (ii)  sums  actually expended or incurred for room and board during
such period, reduced by the total amount of (i) all General and  Special
Purpose  Awards  (as provided in article thirteen of the education law),
and (ii) all other  forms  of  direct  financial  aid  received  by  the
borrower  during  such  period,  however  denominated  and from whatever
source (other than the borrower's family), which by  its  terms  is  not
repayable by the borrower.
* (11)  "Existing  mortgage". A mortgage for which funds were advanced
prior to the date of the most recent invitation of the agency  to  banks
to sell mortgages to the agency.
* NB Repealed July 23, 2025
* (12)  "Forward  commitment  mortgage".  A  mortgage,  which includes
construction loans for single-family  modular  or  manufactured  housing
purchased  and sited on land, for which a commitment to advance funds is
made not earlier than the  date  the  agency  issues  an  invitation  to
purchase  mortgages or such later date as specified in the invitation. A
mortgage made in satisfaction of the obligation of a bank under  section
twenty-four  hundred  five  of  this  part  is  not a forward commitment
mortgage.
* NB Repealed July 23, 2025
* (13) "Housing loan". A loan owed to a  bank,  secured  in  a  manner
satisfactory  to  the  agency,  to improve, rehabilitate, reconstruct or
redevelop one to four unit residences located in  the  state.  The  loan
shall  be  insured  or guaranteed by the United States of America or any
agency thereof, or by a firm which is authorized by  the  superintendent
of financial services of the state of New York to issue such policies in
the state.
* NB Repealed July 23, 2025
* (14)  "Persons  and families of low or moderate income". Persons and
families within the state who are  determined  by  the  agency  to  lack
sufficient income to pay enough to cause an adequate supply of credit to
be  made  available  for  new  residential improvement loans at carrying
charges within the financial means of  such  persons  and  families  and
whose incomes are below the income levels determined by the agency to be
in  need  of  the  assistance  made available by this title, taking into
consideration, without limitation, such factors as  the  following:  (i)
the  amount  of  the total income of such persons and families, (ii) the
size of the family  unit,  (iii)  the  cost  to  improve,  rehabilitate,
reconstruct  or  redevelop  residential  family dwelling units, (iv) the
ability of such persons and families  to  pay  the  amounts  charged  in
regular    banking   channels   for   credit   for   such   improvement,
rehabilitation, reconstruction, or redevelopment work, and (v) standards
established  by  various  programs  of  the   federal   government   for
determining eligibility based on income of such persons and families.
* NB Repealed July 23, 2025
(15)  "Blending".  The financing of a single mortgage loan partly with
the proceeds of bonds issued pursuant  to  subdivision  one  of  section
twenty-four  hundred seven of this title and partly with the proceeds of
bonds issued pursuant to subdivision two of such section.
(16) "Employer". Any corporation, partnership, or sole  proprietorship
which maintains an office in the state.
* (17)  "Government  sponsored enterprises". Privately owned, publicly
chartered entities, and wholly-owned corporate instrumentalities of  the
United  States  within  the department of housing and urban development,
created pursuant to 12 USC 1717(a)(2)(A), all  created  by  Congress  to
encourage  lending  and  reduce costs primarily in the housing sector of
the economy, and any successor entity or entities created by Congress to
continue to serve said purposes.
* NB Repealed July 23, 2025