New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 419 - SERVICING MORTGAGE LOANS: BUSINESS CONDUCT RULES › Section 419.1 - Definitions

Current through Register Vol. 46, No. 28, July 10, 2024
For purposes of this Part, unless otherwise stated herein,
					 terms shall have the same meaning as set forth in Part 418 of this
					 Title.
(a)
Affiliated
				  relationships
means a relationship between two or more entities where
				  one such entity, directly, or indirectly, through one or more intermediaries,
				  controls, or is controlled by or is under common control with another such
				  entity.
(b)
Authorized
				  representative
means a person, including an attorney, employee or
				  agent of a government agency, not-for-profit housing counseling organization,
				  or legal services organization, designated by a borrower in a written
				  authorization signed by the borrower, or any other form of verifiable
				  authorization, to share information and communicate with a servicer on behalf
				  of the borrower.
(c)
Billing cycle
means the interval between the days or dates of
				  regular periodic statements. These intervals shall be equal and no longer than
				  a quarter of a year. An interval will be considered equal if the number of days
				  in the cycle does not vary more than four days from the regular day or date of
				  the periodic statement.
(d)
Borrower
means a natural person obligated to pay a mortgage
				  loan and, if applicable, such person's successor in interest or authorized
				  representative when acting on behalf of such person.
(e)
Business day
means any
				  day of the week except for Saturday, Sunday and any legal holiday.
(f)
Complete loss mitigation
				  application
means a loss mitigation application for which a servicer
				  has received the information that the servicer reasonably requires from a
				  borrower to evaluate the loss mitigation options available to the
				  borrower.
(g)
Clearly and
				  conspicuously
means that the statement, representation or term being
				  disclosed is of such size, color, and contrast and is so presented as to be
				  readily noticed and understood by an ordinary consumer.
(h)
Loss mitigation
				  application
means an oral or written request for a loss mitigation
				  option that is accompanied by any information required by a servicer to
				  evaluate the loss mitigation options available to the borrower.
(i)
Loss mitigation option
means an alternative to foreclosure, including, but not limited to, a loan
				  modification, shared appreciation mortgage modification agreement,
				  reinstatement, forbearance, deed-in-lieu, or short sale.
(j)
Mortgagee
shall mean the
				  owner or assignee of a mortgage loan.
(k)
RESPA
means the Real
				  Estate Settlement Procedures Act of 1974,  12 U.S.C. section 2601
et
				  seq.
and regulations adopted thereunder, also sometimes known as
				  regulation X, and found at  12 C.F.R. part 1024.
(l)
Servicer
means a person
				  engaging in the servicing of mortgage loans in this State whether or not
				  registered or required to be registered pursuant to paragraph (b-1) of
				  subdivision (2) of Banking Law section
				  590.
(m)
Servicing mortgage loans
means receiving any scheduled periodic payments from a borrower pursuant to the
				  terms of any mortgage loan, including amounts for escrow accounts under section 6-k  of the Banking Law, title 3-A of article
				  IX of the Real Property Tax Law or of RESPA of 1974 as amended (12 USC 2609),
				  and making payments to the owner of the loan or other third parties of
				  principal and interest and such other payments with respect to the amounts
				  received from the borrower as may be required pursuant to the terms of the
				  mortgage loan documents or servicing contract. In the case of a home equity
				  conversion mortgage or reverse mortgage as referenced in section 6-h  of the Banking Law, sections 280 and
				  280-a  of the Real Property Law or  24 CFR 3500.2, servicing includes making
				  payments to the borrower. The term includes a person who makes or holds a
				  mortgage loan if such person also directly or indirectly is the holder of the
				  mortgage servicing rights or has been delegated servicing functions for the
				  mortgage loan.
(n)
Settlement service
means any service provided in connection
				  with a prospective or actual settlement, including, but not limited to, any one
				  or more of the following:
(1) origination of a
				  federally related mortgage loan (including, but not limited to, the taking of
				  loan applications, loan processing, and the underwriting and funding of such
				  loans);
(2) rendering of services
				  by a mortgage broker (including counseling, taking of applications, obtaining
				  verifications and appraisals, and other loan processing and origination
				  services, and communicating with the borrower and lender);
(3) provision of any services related to the
				  origination, processing or funding of a federally related mortgage
				  loan;
(4) provision of title
				  services, including title searches, title examinations, abstract preparation,
				  insurability determinations, and the issuance of title commitments and title
				  insurance policies;
(5) rendering
				  of services by an attorney;
(6)
				  preparation of documents, including notarization, delivery, and
				  recordation;
(7) rendering of
				  credit reports and appraisals;
(8)
				  rendering of inspections, including inspections required by applicable law or
				  any inspections required by the sales contract or mortgage documents prior to
				  transfer of title;
(9) conducting
				  of settlement by a settlement agent and any related services;
(10) provision of services involving mortgage
				  insurance;
(11) provision of
				  services involving hazard, flood, or other casualty insurance or homeowner's
				  warranties;
(12) provision of
				  services involving mortgage life, disability, or similar insurance designed to
				  pay a mortgage loan upon disability or death of a borrower, but only if such
				  insurance is required by the lender as a condition of the loan;
(13) provision of services involving real
				  property taxes or any other assessments or charges on the real
				  property;
(14) rendering of
				  services by a real estate agent or real estate broker; and
(15) provision of any other services for
				  which a settlement service provider requires a borrower or seller to
				  pay.