New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 38 - Definitions Of Terms; Advertising; Application And Commitment Disclosures And Procedures; Improper Conduct Under Article 12-d › Section 38.4 - Commitment disclosures and procedures

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Disclosure requirements for mortgage
				loans for acquisition of a dwelling and for all other mortgage loans for which
				a commitment fee or points are paid to the lender. At time of commitment, and
				in any case prior to the acceptance of a commitment fee or any points, each
				mortgage banker and exempt organization making a mortgage loan shall disclose
				in writing or by electronic transmission to each applicant for a mortgage loan
				the fees to be paid in connection with the commitment and the terms and
				conditions under which such fees may be refundable. Each mortgage banker and
				exempt organization shall also disclose the items listed below in the written
				or electronically transmitted commitment:
(1)
				Terms and conditions of the mortgage loan.
(i)
				identification of entity making commitment;
(ii) identification of borrower(s);
(iii) identification of property securing
				loan;
(iv) principal amount of the
				loan;
(v) term of the
				loan;
(vi) initial interest
				rate;
(vii) initial monthly payment
				of principal and interest;
(viii) a
				statement that a balloon payment will be required (if applicable);
(ix) if the loan is an adjustable rate loan,
				in addition to the foregoing, the lender shall disclose the frequency of
				change, the index, the margin, and any relevant caps;
(x) a statement that private mortgage
				insurance will be required (if applicable) and the conditions under which such
				insurance would no longer be required;
(xi) a statement that flood insurance may be
				required if the property is in a flood zone;
(xii) a statement that negative amortization
				may apply (if applicable);
(xiii)
				whether and under what conditions the mortgage is assumable;
(xiv) a statement that funds are to be
				escrowed (if applicable);
(xv)
				total points to be accepted directly or indirectly by or on behalf of the
				mortgage banker or exempt organization at or prior to closing;
(xvi) the mortgage banker or exempt
				organization shall separately identify the points, including premium pricing,
				payable by the lender to a mortgage broker or a mortgage banker or exempt
				organization when acting in a mortgage brokerage capacity and briefly explain
				the basis for the premium pricing payment. Upon receipt of a copy of the
				separate fee agreement between the broker and the applicant, which fee
				agreement may be in writing or electronically transmitted, the lender is
				required to disclose any fees or points to be paid by the applicant directly to
				the mortgage broker;
(xvii) if
				applicable, the mortgage banker or exempt organization shall separately
				identify any premiums or bonuses to be paid to the mortgage broker by the
				lender and the basis of the mortgage broker's eligibility to receive premiums
				or bonuses; and
(xviii) if
				applicable, the amount of, or formula for calculating, the pre-payment penalty
				and terms of the pre-payment penalty.