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 80.8 - Rate of interest and permitted charges

Current through Register Vol. 46, No. 28, July 10, 2024
The rate or rates of interest that a lender may take or
				  receive on a junior mortgage loan shall be the rate or rates agreed upon by the
				  lender and the borrower. Such interest may be charged relative to unpaid
				  principal balances or may be precomputed; provided that if a precomputed junior
				  mortgage loan is repaid prior to maturity for any reason, any unearned interest
				  shall be refunded according to the actuarial method based on scheduled
				  remaining balances. The unpaid principal balance may include items listed in
				  subdivisions (a)-(u) of this section. No fee, commission, expense or other
				  charge to the borrower in addition to the interest charge provided for in this
				  section shall be taken, received, reserved or contracted for by a lender in
				  connection with the making or maintenance of a junior mortgage loan, except,
				  where applicable, to the extent not otherwise inconsistent with any other
				  provision of law:
(a) a loan
				origination fee, commitment fee or similar charge;
(b) a fee or charge for appraising or
				surveying the property securing such junior mortgage loan;
(c) fees or premiums for a title examination,
				an abstract of title, title insurance or similar purposes, a credit report fee
				and a fee taken at closing for a search for tax liens existing at the time of
				closing if such search is not included in the title examination provided such
				fees or premiums actually will be paid by the lender;
(d) fees or charges prescribed by law which
				actually are or will be paid by the lender to public officials for determining
				the existence of or for perfecting or releasing or satisfying any security
				related to the junior mortgage loan;
(e) fees or charges which actually are or
				will be paid by the lender for any transfer, mortgage recording or related
				tax;
(f) reasonable attorney's fees
				representing actual fees charged to the lender in connection with the closing
				of such junior mortgage loan;
(g)
				charges for credit life, credit accident and health insurance, credit
				unemployment insurance, and mortgage guaranty insurance;
(h) reasonable attorney's fees not in excess
				of 15 percent of the unpaid debt in the event of default if such junior
				mortgage loan is referred to an attorney who is not a salaried employee of the
				lender for collection;
(i) a late
				charge on any payment that is due and unpaid;
(j) fees or charges for processing stop
				payment orders;
(k) fees or charges
				for handling checks drawn on insufficient funds in accordance with the
				provisions of section 5-328  of the General Obligations
				Law;
(l) fees or charges for
				replacing lost or stolen checks;
(m) fees or charges for printing
				checks;
(n) fees or charges for
				converting, at the borrower's request, all or part of a loan to a closed- end
				fixed or variable rate term loan;
(o) fees or charges for reducing the interest
				rate on existing junior lien loans or for any other loan modification requested
				by the borrower;
(p) fees or
				charges taken at closing for a flood zone search;
(q) an annual fee;
(r) an application fee and/or processing fee
				each in an amount reasonably related to the services to be performed on behalf
				of the applicant, which fee shall not be figured as a percentage of the
				principal amount of the loan, credit line or amount financed;
(s) fees or charges for dishonoring a
				check(s) that cannot be approved since the borrower is in violation of the
				terms of the agreement or where payment of such a check(s) would cause the
				borrower to be in violation of the terms of the agreement, but not more than
				once in a monthly billing cycle;
(t) an overlimit fee or charge which may be
				imposed whenever the specified credit limit is exceeded, but not more than once
				in a monthly billing cycle; and
(u)
				such other fees or charges as may be specifically authorized by rule or
				regulation.
The fees and/or charges permitted in subdivisions (j), (l),
				  (m), (q), (s) and (t) of this section are permitted only in connection with a
				  revolving credit account.