reglab/statecodes huggingface dataset:
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 77 - Investments In Commercial, Corporate And Business Loans By Savings Banks And Savings And Loan Associations; Leasing Transactions; Letters Of Credit › Section 77.1 - Explanatory note

Current through Register Vol. 46, No. 28, July 10, 2024
Sections 235 (8-c) and
				  380-k  of the Banking Law permit savings
				  banks and savings and loan associations to invest in promissory notes
				  representing commercial, corporate or business loans subject to the individual
				  and aggregate restrictions provided therein. Sections 235(28-b) and 380-j
				  permit such institutions to acquire and lease personal property. Other
				  provisions of the Banking Law empower such institutions to invest in loans
				  secured by mortgages on commercial real estate, and such loans are often made
				  to corporate obligors or other business entities. Moreover, such institutions
				  may, under other provisions of law, invest in certain corporate
				  interest-bearing securities. The authority to make the investments referred to
				  in this section are additional authority and, except as specifically provided
				  herein, shall not be deemed to limit the investment authority of such
				  institutions which is provided under any other provision of
				  law.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 77 - Investments In Commercial, Corporate And Business Loans By Savings Banks And Savings And Loan Associations; Leasing Transactions; Letters Of Credit › Section 77.2 - Definition

Current through Register Vol. 46, No. 28, July 10, 2024
For purposes of this Part, the term commercial, corporate or
				  business loan shall mean any loan, represented by a promissory note, or other
				  evidence of indebtedness, not otherwise authorized or permitted by any other
				  provision of the Banking Law, made by a savings bank or a savings and loan
				  association:
(a) to a partnership,
				corporation or unincorporated association; or
(b) to a natural person for purposes other
				than personal, family or household use;
provided that any loan that would otherwise qualify as a
				  commercial, corporate or business loan but for the fact that such loan also
				  qualifies as an investment under section 235 (31) or
				  379 (7)  of the Banking Law
				  may, at the election of the savings bank or savings and loan association, be
				  treated as a commercial, corporate or business loan for purposes of this Part.
				  In determining whether a loan to a natural person is a commercial loan, a
				  savings bank or savings and loan association may rely on the borrower's
				  statement of purpose if accepted in good faith.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 77 - Investments In Commercial, Corporate And Business Loans By Savings Banks And Savings And Loan Associations; Leasing Transactions; Letters Of Credit › Section 77.4 - Participations

Current through Register Vol. 46, No. 28, July 10, 2024
A savings bank or savings and loan association may
				  participate in and invest in any loan:
(a) which, if originated by another savings
				bank or savings and loan association, satisfies all the requirements of this
				Part; or
(b) which, if originated
				by any other lender, is made either:
(1) to a
				partnership, corporation or unincorporated association; or
(2) to a natural person for purposes other
				than personal, family or household use.
Any participation or investment made pursuant to the
				  provisions of this section shall be deemed to be a commercial, corporate or
				  business loan made by the participating institution for purposes of this Part.
				  No authority to participate in letters of credit shall be deemed granted
				  hereunder.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 77 - Investments In Commercial, Corporate And Business Loans By Savings Banks And Savings And Loan Associations; Leasing Transactions; Letters Of Credit › Section 77.5 - Letters of credit

Current through Register Vol. 46, No. 28, July 10, 2024
For purposes of sections 235 (8-c) and
				  380-k  of the Banking Law, a commercial,
				  corporation or business loan shall be deemed to include commercial letters of
				  credit and standby letters of credit as a category of commercial loan
				  transaction so long as they meet the requirements of this section. However, all
				  amounts to be drawn under commercial letters of credit and the amounts for
				  which a savings bank or savings and loan association makes a commitment under a
				  standby letter of credit are to be aggregated and shall usually be considered
				  unsecured loans. Consequently, they shall be subject to the 15 per centum
				  unsecured loan limit per borrower. The following requirements apply to
				  commercial letters of credit and to standby letters of credit:
(a) each letter of credit must conspicuously
				state that it is a letter of credit;
(b) the institution's undertaking must
				contain a specified expiration date or must be for a definite term;
(c) the institution's undertaking must be for
				a stated and limited amount;
(d)
				the institution's obligation to pay must arise only upon presentation of a
				draft or other documents as specified in the letter of credit and the
				institution must not be called upon to determine questions of fact or law at
				issue between the parties to the underlying transaction; and
(e) the customer of the institution must have
				an unqualified obligation to reimburse the savings bank or savings and loan
				association for payments made under the letter of credit.
All amounts representing obligations entered into under
				  commercial or standby letters of credit must be reported to the Board of
				  Trustees of the savings bank or the Board of Directors of the savings and loan
				  association in the same manner as set forth for loans in section 252 
				  of the Banking Law.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 77 - Investments In Commercial, Corporate And Business Loans By Savings Banks And Savings And Loan Associations; Leasing Transactions; Letters Of Credit › Section 77.6 - Leasing

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Pursuant to
				Banking Law, sections
				235(28-b) and
				380-j, a savings bank and a savings and
				loan association may acquire and lease personal property.
(b) Such leases are subject only to the same
				limitations as are imposed on such investments for commercial banks or trust
				companies under Banking Law, section
				96(12) and, to the extent
				they are deemed to be loans, to individual borrowing limitations.
(c) For loan limit purposes, such leases are
				considered to be secured loans to the lessee except to the extent there is a
				net unrecovered investment at the end of the lease term. To that extent, the
				lease is considered an unsecured loan.
(d) Lease payments are considered to be in
				the nature of rent and not interest.
(e) All leases authorized hereunder must be
				on a nonoperating basis. For instance, for purposes of automobile leasing, the
				savings bank or savings and loan association may not directly or indirectly,
				provide for the servicing, repair or maintenance of the leased vehicle during
				the lease term; purchase parts and accessories in bulk or for an individual
				vehicle after the lessee has taken delivery of the vehicle; provide for the
				loan of an automobile during servicing of the leased vehicle; purchase
				insurance for the lessee; or provide for the renewal of the vehicle's license
				merely as a service to the lessee where the lessee could renew the license
				without authorization from the lessor.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 77 - Investments In Commercial, Corporate And Business Loans By Savings Banks And Savings And Loan Associations; Leasing Transactions; Letters Of Credit › Section 77.8 to 77.9 - Renumbered

Current through Register Vol. 46, No. 28, July 10, 2024
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 78 - Personal Loan Departments Of Savings Banks And Savings And Loan Associations › Section 78.1 - Explanatory note

Current through Register Vol. 46, No. 28, July 10, 2024
Sections 235 (8-b) and
				  380-i  of the Banking Law permit savings
				  banks and savings and loan associations, respectively, to operate personal loan
				  departments. Other long-standing provisions of the Banking Law empower savings
				  banks and savings and loan associations to invest in certain secured and
				  unsecured personal loans. The authority to operate a personal loan department
				  pursuant to sections 235(8-b) and 380-i is an additional authority and, except
				  as specifically provided herein, shall not be deemed to limit the investment
				  authority of a savings bank or savings and loan association which is provided
				  under any other provision of the law.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 78 - Personal Loan Departments Of Savings Banks And Savings And Loan Associations › Section 78.2 - General authority for personal loan department

Current through Register Vol. 46, No. 28, July 10, 2024
A savings bank and savings and loan association may operate a
				  personal loan department under the same requirements as are provided in section 108 (4)  of the Banking Law
				  for a bank or trust company and may make any loan or advance that a bank or
				  trust company may make pursuant to the provisions of section 108 (4)-(5)  of the Banking
				  Law on the same terms and conditions as provided in such
				  sections.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 79 - Reverse Mortgage Loans › Section 79.1 - Scope and application of this Part

Current through Register Vol. 46, No. 28, July 10, 2024
Article 12-D of the Banking Law requires certain lenders
				  engaged in the business of making mortgage loans to obtain a license from the
				  superintendent. Article 12-D of the Banking Law also provides exemptions from
				  such licensing requirements for certain exempt organizations, provided that the
				  superintendent is notified that they are making mortgage loans in this State
				  and they comply with any regulations applicable to persons so engaged. This
				  Part sets forth requirements that are applicable to both licensed entities and
				  exempt organizations engaged in the making of reverse mortgage loans in this
				  State. General Regulations of the Superintendent Parts 80 and 82 of this Title
				  shall not apply to R PL 280 -b loans to the extent that such application would
				  conflict with the HUD/HECM reverse mortgage loan program.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 79 - Reverse Mortgage Loans › Section 79.2 - Definitions

Current through Register Vol. 46, No. 28, July 10, 2024
For purposes of this Part:
(a) The term advertisement means any
				information, whether disseminated through print or published material,
				electronic media, audio or visual material, or descriptive literature used to
				inform consumers about or induce consumers to apply for a reverse mortgage
				loan. The term advertisement shall not include:
(1) Direct personal contacts relating to the
				negotiation of a specific transaction;
(2) Informational material, such as,
				interest-rate and loan-term memos, distributed only to business
				entities;
(3) Notices required by
				federal or state law, if the law mandates that specific information be
				displayed and only the information so mandated is included in the
				notice;
(4) News articles the use
				of which is controlled by the news medium;
(5) Market-research or educational materials
				that do not solicit business; or
(6) Communications about an existing credit
				account, such as a promotion encouraging additional or different uses of an
				existing credit card account.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 79 - Reverse Mortgage Loans › Section 79.3 - Authority to make reverse mortgage loans

Current through Register Vol. 46, No. 28, July 10, 2024
(a) No person or entity may engage in the
				business of making a reverse mortgage loan unless they are licensed to make
				mortgage loans pursuant to section 591  of the Banking Law or are an exempt
				organization.
(b) In addition to
				the requirements of subdivision (a) above, effective March 5, 2020, no person
				or entity may engage in the business of making a reverse mortgage loan unless
				they have applied and are granted such right by the superintendent.
(c) An application for authority to make
				reverse mortgage loans must be made in accordance with the following, as
				applicable:
(1) Any person or entity licensed
				pursuant to section 591  of the Banking Law must apply to the
				Department for authority to make reverse mortgages loans and demonstrate, to
				the satisfaction of the superintendent, the following:
(i) The lender satisfies the financial
				responsibility requirements set forth in section
				410.1 
				of the Superintendent's Regulations and:
(a)
				as it relates to the origination of R PL 280 and R PL 280 -a loans, maintains
				an irrevocable standby letter of credit in favor of the lender:
(1) The irrevocable standby letter of credit
				must meet the following criteria:
(A)the
				initial term is at least two years;
(B) it is provided by a financial institution
				that is not affiliated with the lender; and
(C) it is in an amount necessary to fund all
				reverse mortgage loan requirements anticipated to be made over the next 12
				rolling months or an amount to be determined by the superintendent and
				published on the Department's website, whichever is greater.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 79 - Reverse Mortgage Loans › Section 79.4 - Advertising restrictions

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Any
				advertisement for a reverse mortgage loan shall indicate the name of the entity
				and, in the event the entity maintains an office in New York, the street
				address for such office.
(b)
				Disclosures required by this section shall be clear and conspicuous.
(c) Advertisement of terms that require
				additional disclosures:
(1) Material Terms.
				An advertisement that references any of the following terms shall include the
				appropriate qualification listed in paragraph (c)(2):
(i) The mortgage insurance premium
				percentage;
(ii) The interest
				rate;
(iii)The number of payments
				or period of payments to the mortgagor;
(iv)The amount of any payments; or
(v) The amount of any origination
				fees.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 79 - Reverse Mortgage Loans › Section 79.5 - Requirements for reverse mortgage loans

Current through Register Vol. 46, No. 28, July 10, 2024
All reverse mortgage loans shall comply with the following
				  requirements:
(a) The security
				instrument shall expressly and conspicuously bear a legend identifying the
				security as a "reverse mortgage;"
(b) The mortgagor may prepay any reverse
				mortgage loan without penalty at any time. The payment of any fees or charges,
				such as a termination fee, that otherwise would be due at maturity without
				prepayment shall not be deemed a penalty for these or any other
				purposes;
(c) Mortgagees shall be
				prohibited from using or attaching any property or asset of the mortgagor
				except the real property securing the reverse mortgage loan;
(d) In the event that a mortgagee fails to
				make payment of or remit to the mortgagor any monies required under any reverse
				mortgage loan within 15 calendar days of its due date, the mortgagee shall
				forfeit twice the interest that would have been earned on the outstanding loan
				principal for the entire period during which payments to the mortgagor were
				late, unless the mortgagee otherwise has the right to terminate the reverse
				mortgage loan pursuant the "Lender's Limited Waiver of the Right of
				Foreclosure" executed in accordance with section
				79.7(d) 
				of this Part and due notice has been provided to the mortgagor or authorized
				designee;
(e) No reverse mortgage
				loan commitment or approval shall be issued by a lender until the applicant
				presents a counseling acknowledgment (herein defined), provided in accordance
				with 79.9(a)(4) of this Part and including the name address telephone number
				and signature of the applicant and, if applicable, the non-mortgagor spouse and
				the housing counselor, as well as, the date of the counseling which must be no
				more than 6 months prior to the date of the signing of the commitment.
(1) A HUD Certificate of HECM Counseling may
				be substituted for the counseling acknowledgment for R PL 280 -b
				loans.
(2) All completed counseling
				acknowledgments and HUD Certificates of HECM Counseling shall be maintained by
				the mortgagee, for inspection by the superintendent, in an accurate,
				reproducible, and accessible format for the entire term of the reverse mortgage
				loan, and thereafter in accordance with applicable statutes;
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 79 - Reverse Mortgage Loans › Section 79.6 - Maintenance of real property securing reverse mortgage loans

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Mortgagor shall be required to maintain
				the real property securing the reverse mortgage loan in a reasonably similar
				condition, state and repair as the property is in at the time of closing or
				after repairs have been made for which funds have been disbursed or set aside
				at closing for later disbursement and that the mortgagor agreed to make as a
				condition of the closing of the loan. For purposes of this section, the term
				"reasonably similar condition, state and repair" is relevant only to the extent
				that such condition, state or repair threatens to materially damage the
				property or its market value.
(b)
				If the mortgagor fails to maintain the real property securing the reverse
				mortgage loan in accordance with subsection (a) the mortgagee may arrange for
				such maintenance upon receiving consent to enter upon the premises, which is
				not to be unreasonably withheld by the mortgagor. Notwithstanding applicable
				state and federal rules and laws, a mortgagee may pay for maintenance work done
				in accordance with this section in the following ways:
(1) by deducting necessary amounts from a set
				aside account;
(2) by withholding
				from one or more monthly payments otherwise due to the mortgagor no more than
				25 percent of each such monthly payment, until the repairs are paid for;
				or
(3) by adding the amount to the
				loan principal.
If a set aside account has been established, then, to the
				  extent possible, the mortgagee must deduct the cost of the repair from such
				  fund before choosing option (2) or (3) of this subdivision. If a set aside
				  account has not been established, then the mortgagee may choose whether to
				  proceed according to option (2) or (3) of this subdivision or a combination
				  thereof.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 79 - Reverse Mortgage Loans › Section 79.7 - Termination of reverse mortgage loans

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Reverse mortgage loans may be terminated
				by the mortgagee solely in the event of any of the following:
(1) the sale, conveyance, transfer or
				assignment of any part of the real property securing the loan or any of the
				mortgagor's rights in the real property, whether voluntarily or
				involuntarily;
(2) the mortgagor'
				death, or if there is more than one mortgagor, then the death of the last
				living mortgagor. If an eligible surviving non-mortgagor spouse lives at the
				mortgage premises, such spouse may live in the property for the rest of his or
				her life as long as they cure any default in payment of property charges and
				remain there as their primary residence;
(3) the mortgagor, without notifying the
				mortgagee of an anticipated date of return and making arrangements satisfactory
				to mortgagee for the maintenance of the real property, ceases, in any 365-day
				period, to use the real property as his or her principal place of residence or
				in excess of 180 nonconsecutive days. This provision is subject to the
				following:
(i) The mortgagee's consent to the
				arrangements made pursuant to this paragraph shall not be unreasonably
				withheld.
(ii) A mortgagor staying
				in a rehabilitative facility or nursing home is not subject to the notice
				requirements of this subsection.
(iii)A mortgagor staying in a rehabilitative
				facility or nursing home will not trigger termination for failure to use the
				real property as his or her principal place of residence until such failure
				persists for 12 consecutive months.
(4) the mortgagor's real estate taxes or
				insurance premiums, as required pursuant to the security agreement, are in
				arrears;
(5) the mortgagor:
(i) is the subject of an involuntary petition
				in bankruptcy that is not discharged within 90 calendar days after it is filed;
				or
(ii) applies for or permits the
				appointment of a receiver, trustee or custodian for the real property securing
				the loan which is not discharged within 90 calendar days after the date of
				appointment; provided, however, that the appointment of a conservator,
				guardian, committee or other fiduciary of the person to act on the mortgagor'
				behalf in connection with a determination by a court that the mortgagor is
				incompetent will not terminate the loan; or
(6) the mortgagor fails to maintain the real
				property in accordance with section
				79.6 
				of this Part.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 79 - Reverse Mortgage Loans › Section 79.8 - Permitted fees, costs and payments

Current through Register Vol. 46, No. 28, July 10, 2024
(a) At the time of taking an application, and
				at no time prior, lenders or brokers may charge the following costs and fees,
				as applicable, and none other, provided that the disclosures required by
				section
				79.9(a) 
				of this Part have been provided to each applicant, and that the costs and fees
				are fully disclosed, reasonably related to the services provided to or
				performed on behalf of the applicant, and, when applicable, whether any cost or
				fee charged to the applicant for a service to be provided by a third-party
				provider is actually paid by the lender or broker to a third-party provider:
(1) an application fee, provided that (i) the
				amount, along with whether the fee is non-refundable, is fully disclosed prior
				to the taking of an application and (ii) the fee is not derived as a percentage
				of the principal amount of the loan or amount financed;
(2) the cost of appraising or surveying the
				property once; and
(3) the cost of
				a credit report.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 79 - Reverse Mortgage Loans › Section 79.10 - Availability of RPL 280 and RPL 280-a loans

Current through Register Vol. 46, No. 28, July 10, 2024
(a) The requirements of Real Property section
				280(10) shall not apply to the extent that the lender determines that there are
				no or insufficient applications for R PL 280 -a loans, the individuals who
				apply for R PL 280 -a loans do not qualify for such loans, or mortgage
				insurance for the principal and any accrued but unpaid interest for R PL 280 -a
				loans is not available for the type of reverse mortgage loan made by the lender
				through the private market or any agency of the State of New York. Such
				determination may only be reached after making a documented and diligent effort
				to obtain such mortgage insurance, which determination shall be subject to
				review by the superintendent at his or her discretion.
(b) A lender shall, among other things:
(1) advertise its R PL 280 -a loan programs
				to the same extent as it advertises its R PL 280 loan programs in all the
				counties in which the lender makes R PL 280 loans;
(2) ensure that all advertising materials,
				including brochures, for any reverse mortgage loans designed specifically for
				New York residents mention both the lender's R PL 280 -a and R PL 280 loans and
				prominently display or state the lender's name;
(3) make promotional materials for its R PL
				280 -a loans available to the local and county offices for the aging, the New
				York State Office for the Aging and the Department of Financial Services, to
				the extent reasonably requested by them, in all counties in which the lender
				makes R PL 280 loans; and
(4)
				require its loan officers to inform applicants for R PL 280 loans of the
				lender's R PL 280 -a loan programs.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 79 - Reverse Mortgage Loans › Section 79.12 - Special provisions regarding payment of real estate taxes and insurance

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Mortgagor shall
				have the right to choose a property insurer(s) subject to the mortgagee's
				consent which shall not be unreasonably withheld. If the mortgagor fails to
				choose a property insurer(s) in a timely manner or if the insurer(s) is not
				acceptable to the mortgagee, then the mortgagee may insure the property with a
				carrier(s) of its choice in accordance with 11 NYCRR Part 227.
(b) Notwithstanding applicable state or
				federal rule or law, the mortgagee may advance the funds necessary to pay
				property insurance premiums or real estate taxes under the following
				circumstances:
(1) the borrower's payment of
				such property charges is already more than 30 days overdue;
(2) the reverse mortgage loan has already
				been called due and payable; or
(3)
				a set aside account has been established and the taxing jurisdiction offers a
				discount for disbursements on a lump sum annual basis or imposes an additional
				charge or fee for installment disbursements and the mortgagee has chosen to
				take advantage of the discount for the borrower or avoid the additional charge
				or fee for installments.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 79 - Reverse Mortgage Loans › Section 79.13 - Policies and procedures

Current through Register Vol. 46, No. 28, July 10, 2024
The board of directors or trustees of every State-chartered
				  bank, trust company, savings bank, savings and loan association, or credit
				  union and the appropriate officers of a foreign bank maintaining an insured
				  branch in this State, as well as, all mortgage bankers, mortgage loan servicers
				  and mortgage brokers which shall engage in the business of making, soliciting,
				  processing or servicing reverse mortgage loans shall adopt such policies and
				  procedures as are necessary to safely conduct such business and to establish,
				  monitor and periodically reevaluate appropriate limitations on the
				  institution's aggregate reverse mortgage loan portfolio. Such policies and
				  procedures shall be consistent with safe and sound practices and shall take
				  into account the banking institution's size and financial condition, local
				  economic conditions, the availability of insurance for the portfolio or any
				  portion thereof, consumer and homeowner protections, and any other factors that
				  the institution deems relevant. Such policies and procedures shall be subject
				  to the superintendent's periodic review.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 79 - Reverse Mortgage Loans › Section 79.14 - Transition Period

Current through Register Vol. 46, No. 28, July 10, 2024
Notwithstanding any other applicable federal or state law or
				  rule, for one hundred and twenty (120) days including and following the March
				  5, 2020 effective date of this Part, mortgagees either originating or servicing
				  R PL 280 -b loans shall not be in violation of this Part if they comply with
				  the Part 79 that was in effect prior to March 5, 2020.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 80 - Investment In Junior Lien Mortgage Loans By Commercial Banks, Savings Banks, Credit Unions, Mortgage Bankers And Savings And Loan Associations › Section 80.1 - Definitions

Current through Register Vol. 46, No. 28, July 10, 2024
For purposes of this Part:
(a) The term lender shall mean a bank, trust
				company, savings bank, savings and loan association, credit union, mortgage
				bankers or exempt organization as defined in section 590  of the
				Banking Law.
(b) The term natural
				person shall mean an individual.
(c) The term junior mortgage loan shall mean
				a loan or other extension of credit to a natural person secured by:
(1) a mortgage on real property which is:
(i) improved by a one-to-four-family
				owner-occupied residence;
(ii)
				subject to the lien of one or more prior mortgages or similar recorded
				encumbrances; or
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 80 - Investment In Junior Lien Mortgage Loans By Commercial Banks, Savings Banks, Credit Unions, Mortgage Bankers And Savings And Loan Associations › Section 80.2 - General authority

Current through Register Vol. 46, No. 28, July 10, 2024
(a) A
				lender is authorized to make junior mortgage loans in accordance with the
				provisions of this Part. However, junior mortgage loans which equal or exceed
				$250,000 when combined with the outstanding unpaid principal balance on
				existing loans secured by the type of security described in section
				80.1(c) 
				of this Part at the time such junior mortgage loan is made, shall be exempt
				from the provisions of this Part. Except as provided herein, nothing in this
				Part shall be deemed to limit the authority which a lender may otherwise have
				under any other provision of law, including sections 103 (4-a), 235 (6-a), 454 (16) and
				380 (4-a)  of the Banking Law
				to make junior mortgage loans in accordance with such provisions whether or not
				such loans are secured by one-to-four family owner-occupied residences. A
				junior mortgage loan, including a revolving credit line as authorized by
				section
				80.10 
				of this Part, shall be repayable in monthly installments, which may be
				installments of interest only, and may be structured as a fixed-rate mortgage,
				a wrap-around mortgage or any type of adjustable rate or other mortgage form as
				agreed to by the lender and the borrower, unless specifically prohibited by
				this Part or by section
				82.1(b)
				 or
				82.2(b)  of
				this Title.
(b) Balloon payment
				mortgages shall be for a term of not less than three years.
(c) Electronic disclosurers and notifications
				are permitted as set forth in this Part.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 80 - Investment In Junior Lien Mortgage Loans By Commercial Banks, Savings Banks, Credit Unions, Mortgage Bankers And Savings And Loan Associations › Section 80.3 - Maximum amount

Current through Register Vol. 46, No. 28, July 10, 2024
Every lender which engages in the business of making junior
				  lien mortgage loans shall adopt policies and procedures as are appropriate with
				  respect to the maximum amount which, when added to the aggregate amount unpaid
				  upon all prior mortgages, liens, and other encumbrances of record upon the real
				  property or shares (in the case of a cooperative apartment unit), the lender
				  shall advance pursuant to a junior mortgage loan. Such policies and procedures
				  shall be subject to the superintendent's periodic review.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 80 - Investment In Junior Lien Mortgage Loans By Commercial Banks, Savings Banks, Credit Unions, Mortgage Bankers And Savings And Loan Associations › Section 80.5 - Notification

Current through Register Vol. 46, No. 28, July 10, 2024
(a) At least 30 but
				not more than 120 days prior to a payment adjustment and at least 90 but not
				more than 120 days prior to the expected maturity of a balloon-payment
				mortgage, a lender shall provide the borrower with notice in writing or, where
				the borrower has consented in advance, via electronic media, of the adjustment
				or of maturity. However, where the loan contract provides that changes in the
				interest rate shall occur more frequently than changes in the payment, the
				lender need not notify the borrower of changes in the rate, nor of changes in
				the loan balance or term resulting from a rate change, until notice of a
				payment adjustment is given. (For purposes of notification, either in writing
				or, where the borrower has consented in advance, via electronic media, a
				payment adjustment is considered to occur as of the date of the interest-rate
				change immediately preceding the due date of the adjusted payment.) In
				addition, where the loan contract sets out a schedule of payment adjustments,
				notice need not be given of payment changes made pursuant to that
				schedule.
(b) In the case of a
				revolving credit line secured by a junior mortgage, written or, where the
				borrower has consented in advance, electronic notification of payment changes
				need only be given at the time the adjusted payment is due.
(c) With regard to the electronic
				transmission of notices, a hard-copy of such notice shall be mailed to each
				applicant who indicates that he or she does not have the computer capacity to
				down-load and print such notice. In those instances in which a hard-copy of the
				notice is not mailed to the applicant, the lender must be able to demonstrate
				that information was obtained as to the applicant's computer capacity to
				down-load and print such notice.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 80 - Investment In Junior Lien Mortgage Loans By Commercial Banks, Savings Banks, Credit Unions, Mortgage Bankers And Savings And Loan Associations › Section 80.6 - Adjustments to rate, payment, balance or term

Current through Register Vol. 46, No. 28, July 10, 2024
Except for such further limitations on adjustments (i.e., "
				  ceilings", "floors" or "initial discounts") as may be set forth in the loan
				  contract:
(a)
(1) adjustments to the interest rate shall
				correspond directly to the movement of an interest-rate index or of an index
				that measures the rate of inflation, which index is readily available to and
				verifiable by the borrower and is beyond the control of the lender; provided
				that a lender may decrease the interest rate at any time, and provided further,
				that interest rate adjustments may be rounded to the nearest fraction of a
				percentage point when so stated in the contract. A lender may also increase the
				interest rate pursuant to a formula or schedule that specifies the amount of
				the increase, the time at which it may be made, and which is set forth in the
				loan contract;
(2) adjustments to
				the monthly payment and loan balance may be made to reflect interest- rate
				adjustments and, in the case of a payment adjustment, where the adjustment
				reflects change in the loan balance or is made pursuant to a formula or
				schedule specifying the percentage or dollar change in the payment, as set
				forth in the contract;
(3) any
				combination of indices or a moving average of index values may be used as an
				index, but a lender may not change or reserve the right to change the index or
				indices specified in the loan contract unless the initial index or indices
				specified become(s) unavailable during the term of the loan; and
(4) the loan term may be adjusted only to
				reflect a change in the interest rate, the payment or the loan
				balance.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 80 - Investment In Junior Lien Mortgage Loans By Commercial Banks, Savings Banks, Credit Unions, Mortgage Bankers And Savings And Loan Associations › Section 80.7 - Appraisal

Current through Register Vol. 46, No. 28, July 10, 2024
No junior mortgage loan shall be made except upon a written
				  and signed certificate which states that the property securing such loan has
				  been examined and which appraises the value of such property. For mortgage
				  loans in an amount greater than $250,000, the appraised value shall be
				  determined by an appraiser licensed or certified or working under the
				  supervision of an appraiser who is licensed pursuant to article 6-E of the
				  Executive Law.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 80 - Investment In Junior Lien Mortgage Loans By Commercial Banks, Savings Banks, Credit Unions, Mortgage Bankers And Savings And Loan Associations › Section 80.9 - Prohibited clauses

Current through Register Vol. 46, No. 28, July 10, 2024
A contract, note or instrument evidencing or securing a
				  junior mortgage loan shall not contain:
(a) any acceleration clause providing that
				the junior mortgage loan may be declared due and payable upon the mere
				condition that the lender deems itself insecure with respect to the unpaid
				balance of such junior mortgage loan;
(b) any power of attorney to confess judgment
				or any other power of attorney;
(c)
				any provision whereby the borrower waives any rights accruing to him under the
				provisions of this Part;
(d) any
				assignment of or order for the payment of any salary, wages, commissions or
				other compensation for services, or any part thereof, earned or to be earned;
				or
(e) any provision prohibiting
				prepayment of the junior mortgage loan in whole or in part or imposing a
				penalty, except as otherwise permitted by section 5-501 (3)(b)  of the
				General Obligations Law, and then only if according to the provisions of the
				note and mortgage, the interest rate for the loan shall remain fixed for a
				period of at least five years, the mortgage broker, mortgage banker and/or
				exempt organization complies with the provisions of sections
				38.2,
				38.3
				and
				38.4 
				of this Title which pertain to prepayment penalties and the loan contract
				provides for a prepayment penalty; or
(f) any clause allowing the lender to change
				any term of the mortgage agreement other than in those instances set forth in
				section 226.5b(f)(3) of Regulation Z ( 12 CFR part 226).
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 80 - Investment In Junior Lien Mortgage Loans By Commercial Banks, Savings Banks, Credit Unions, Mortgage Bankers And Savings And Loan Associations › Section 80.10 - Revolving credit accounts

Current through Register Vol. 46, No. 28, July 10, 2024
A revolving credit line secured by a junior mortgage must
				  also comply with the following requirements:
(a) the line of credit must be in an amount
				of $2,500 or more;
(b) disclosure
				shall be provided as set forth in section
				80.4  of this Part and
				in addition, the disclosure shall include a statement to the effect that the
				cost of title insurance and mortgage recording tax shall be based on the
				maximum amount of the credit line available to the borrower, whether advanced
				or not;
(c) with each monthly
				statement, the lender must provide the borrower with a statement which
				discloses the following items, to the extent applicable:
(1) previous balance;
(2) identification of transactions;
(3) credits;
(4) periodic rate(s) and fact that it (they)
				may vary;
(5) balance on which
				finance charge is computed;
(6)
				amount of finance charge;
(7)
				annual percentage rate;
(8) other
				charges;
(9) closing date of
				billing cycle;
(10) new
				balance;
(11) free-ride period;
				and
(12) address for notice of
				billing errors;
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 80 - Investment In Junior Lien Mortgage Loans By Commercial Banks, Savings Banks, Credit Unions, Mortgage Bankers And Savings And Loan Associations › Section 80.12 - Compliance with federal regulation

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Lenders which comply with sections
				226.19(b) and 226.20(c) of Regulation Z (  12 CFR part 226 ) or the provisions of
				 12 CFR 563.99  will be deemed to be in compliance with sections
				80.4(a)
				 and
				80.5  of this Part to
				the extent that sections
				80.4(a)
				 and
				80.5  pertain to
				adjustable-rate junior mortgage loan transactions whether or not the
				transactions would otherwise be subject to section 226.19(b) or  12 CFR
				563.99(b).
(b) Lenders which comply
				with sections 226.5b and 226.7 of Regulation Z (12 CFR part 226) will be deemed
				to be in compliance with sections
				80.4(a)
				 and
				80.10(c) 
				of this Part to the extent that sections
				80.4(a)
				 and
				80.10(c) 
				pertain to home equity plans whether or not the plans would otherwise be
				subject to sections 226.5b and 226.7; provided that lenders supply a copy of
				the disclosures required by section 226.5b for retention by the
				borrower.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 80 - Investment In Junior Lien Mortgage Loans By Commercial Banks, Savings Banks, Credit Unions, Mortgage Bankers And Savings And Loan Associations › Section 80.13 - Renumbered

Current through Register Vol. 46, No. 28, July 10, 2024
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 81 - Issuance Of Large-denomination Obligations By Licensed Agencies Of Foreign Banks › Section 81.1 - Explanatory note

Current through Register Vol. 46, No. 28, July 10, 2024
Section 202-a  of the Banking Law authorizes the
				  superintendent to adopt regulations that permit a foreign banking corporation,
				  licensed pursuant to article II of the Banking Law to maintain one or more
				  agencies in New York, to issue to a corporation, partnership, trust,
				  unincorporated association, joint-stock association or similar association
				  obligations each in a principal amount of not less than $100,000.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 81 - Issuance Of Large-denomination Obligations By Licensed Agencies Of Foreign Banks › Section 81.2 - Definitions

Current through Register Vol. 46, No. 28, July 10, 2024
For purposes of this Part:
(a) The term agency shall mean any agency of
				a foreign banking corporation licensed pursuant to article II of the Banking
				Law.
(b) The term
				large-denomination obligation shall mean any obligation, evidenced by a
				promissory note, a certificate of deposit, a statement, or a book entry, in the
				amount of $100,000 or more.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 81 - Issuance Of Large-denomination Obligations By Licensed Agencies Of Foreign Banks › Section 81.3 - Authority to issue large-denomination obligations

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Any agency which shall have given notice
				to the superintendent as provided hereunder shall be authorized to issue
				large-denomination obligations to any foreign or domestic corporation,
				partnership, trust, unincorporated association, joint-stock association or
				similar association upon the expiration of 30 days from the date such notice is
				given unless the superintendent shall have objected in writing to such agency
				within such 30-day period. The notice to be provided pursuant to this Part
				shall be in such form and contain such information as the superintendent may
				prescribe.
(b) For purposes of this
				Part, a large-denomination obligation, evidenced by a promissory note or a
				certificate of deposit in bearer form, shall be deemed to be issued to the
				initial holder thereof.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 82 - Alternative Mortgage Instruments › Section 82.1 - Authorization for alternative mortgage instruments

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Notwithstanding any provisions of State
				law, regulation or interpretation to the contrary, this Part constitutes the
				exclusive authority for banks, trust companies, savings banks, savings and loan
				associations, credit unions, persons and entitles engaging in the business
				described in section 590, article 12-D of the Banking Law (other than federally
				licensed branches and agencies of foreign banking corporations, national banks,
				Federal savings banks, Federal savings and loan associations, Federal credit
				unions and their subsidiaries which are exempt from licensing as mortgage
				bankers) and branches or agencies of foreign banking corporations licensed
				pursuant to article II of the Banking Law ("lender") to make, sell, purchase or
				participate in mortgage loans in a principal amount of less than $250,000 other
				than fixed-rate, equal payment, self-amortizing loans. For purposes of this
				Part, the term mortgage loan is limited to the types of loans described in
				section
				82.2(a)  of
				this Part. Such institutions may make, sell, purchase or participate in the
				types of mortgage loans described in this Part, provided all such loans are
				made in accordance with the provisions of this Part. Such loans shall be
				repayable either in biweekly or in monthly installments. The authorization for
				graduated payment mortgage loans contained in this Part is made pursuant to the
				Banking Board's authority under section 6-f  of the Banking Law, any other provisions
				of State law to the contrary notwithstanding. Mortgage loans in the principal
				amount of $250,000 or more, which would otherwise not be subject to this Part,
				may be structured to provide for negative amortization, if the lender adheres
				to the provisions of sections
				82.5 and
				82.6  of this
				Part.
(b) Nothing in this Part
				authorizes a mortgage loan which contains a demand feature or a mortgage loan
				which is structured either as a price level adjusted mortgage (PLAM) or a
				shared appreciation mortgage (SAM). Further, a balloon mortgage loan, a
				pledge-account mortgage loan and a growing equity mortgage loan may not be
				structured to provide for negative amortization.