reglab/statecodes huggingface dataset:
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 82 - Alternative Mortgage Instruments › Section 82.2 - Scope

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Applicability.
				This Part applies to loans secured by a first mortgage on real property
				improved by a one- to four-family residence occupied by the owner (including
				individual condominium units) or by a first lien on an ownership interest in
				certificates of stock or other evidence of an ownership interest in, and a
				proprietary lease from, a corporation or partnership formed for the purpose of
				the cooperative ownership of real estate. For purposes of this Part all such
				loans are mortgage loans.
(b)
				Permissible features. Subject to the limitations set forth in section
				82.3 
				of this Part, a lender may adjust the interest rate, payment, balance or term
				to maturity on any mortgage loan as is authorized by the loan contract. In
				addition, this Part authorizes a lender to make, sell, purchase or participate
				in balloon payment, growing equity and pledged account mortgage loans in a
				principal amount of less than $250,000 and which may be structured as
				nonamortizing or partially amortizing provided that a balloon-payment mortgage
				loan must have an initial fixed-rate period of three years.
(c) Loan-to-value ratio. The mortgage loans
				authorized by this Part may be made in an amount not exceeding 90 percent of
				the appraised value of the property, or 90 percent of the purchase price or the
				appraised value of the stock and lease in the case of a cooperative apartment
				unit, as calculated at the time the loan is made, provided that such
				loan-to-value ratio may equal 97 percent for any such loan except a
				balloon-payment mortgage loan if:
(1) in
				addition to provisions for full amortization of the loan, the loan contract
				requires, except in the case of cooperative apartment loans, that the pro rata
				portion of estimated annual taxes and assessment on the security property
				(based on the number of installments due annually) be paid to the lending
				institution with each installment payment; and
(2) during the time that the unpaid balance
				of the loan exceeds a loan-to-value ratio of 90 percent (as determined at the
				time the loan is made) the part of such balance exceeding 80 percent of value
				is guaranteed or insured by a mortgage insurance company; except that any
				unpaid loan balance secured by a pledged savings account or pledged securities
				or other guarantee or collateral, the value of which, as found in good faith by
				an officer of the lender, equals or exceeds the part of the loan balance
				exceeding 80 percent of the loan need not be so guaranteed or insured.
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 or certified
				  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 82 - Alternative Mortgage Instruments › Section 82.3 - Adjustments to rate, payment, balance or term

Current through Register Vol. 46, No. 28, July 10, 2024
Except for such further limitations on adjustment (i.e.,
				  "ceilings", "floors" or "initial documents") as may be set forth in the loan
				  contract:
(a) Adjustments to the
				interest rate shall correspond directly to the movement of an interest rate
				index or 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.
(b) 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 a schedule specifying the
				percentage or dollar change in the payment, as set forth in the
				contract.
(c) 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.
(d) 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 82 - Alternative Mortgage Instruments › Section 82.4 - Negative amortization (deferral and capitalization)

Current through Register Vol. 46, No. 28, July 10, 2024
During the term of the loan the loan-to-value ratio may
				  increase above the initial loan-to-value ratio if the increase results from a
				  change authorized under sections
				  82.3
				  and
				  82.2(b)  of
				  this Part, but the loan balance may not exceed 125 percent of the original
				  appraised value of the property unless the loan contract provides that the
				  payment shall be adjusted at least once every five years, beginning no later
				  than the tenth year of the loan, to a level sufficient to amortize the loan at
				  the then existing interest rate and loan balance over the remaining term of the
				  loan.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 82 - Alternative Mortgage Instruments › Section 82.5 - Notifications

Current through Register Vol. 46, No. 28, July 10, 2024
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 or at least annually. 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. 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 82 - Alternative Mortgage Instruments › Section 82.6 - Disclosure

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Prior to
				accepting an application for a loan, a lender must disclose in writing or via
				electronic media to each loan applicant, in one or more documents, and in plain
				language, the terms of the type(s) of loan(s) available to the applicant. The
				disclosure material provided to an applicant shall include at least such of the
				following information as is relevant to the type of loan being offered:
(1) the term to maturity;
(2) the initial interest rate, if known, or
				the manner in which the initial interest rate will be established;
(3) the amount of the initial payment, if
				known, and an explanation of the lending institution's amortization schedule
				for the loan, including how the lending institution determines both the amount
				of each payment and what proportion of each payment will be credited to
				interest;
(4) a full explanation of
				how the interest rate, the payment, the loan balance or the term to maturity
				may be adjusted (including identification of the index/indices to be used and
				how index values may be obtained by the borrower), and how the adjustment of
				one item may affect the others;
(5)
				what information will be contained in each notice of an adjustment and, in the
				case of a non- or partially amortized loan, in the notice of maturity, and how
				far in advance of an adjustment or maturity each notice will be
				provided;
(6) where a valid
				prepayment penalty will be provided for in the loan contract, a description of
				such penalty;
(7) if the loan
				contract will provide for escrow payments, a statement of that fact and an
				explanation of the purpose of requiring escrow payments and how the amount of
				such payments is established;
(8) a
				hypothetical example, illustrative of the type of credit being offered, of the
				effect or the combination of effects that an increase in the rate on the loan
				may have on the amount of the monthly payment, or the number of monthly
				payments or the amount of the final payment; and
(9) the history of the movements in the index
				chosen for the loan, including the highest and lowest interest rates reached by
				the index, and the dates at which these levels were reached, for each of the
				three calendar years preceding the year in which the loan is made, provided
				further that if a loan is made after August 31st of any calendar year, the
				disclosures shall include the high and low figures for the index's performance
				through June 30th of that year and such disclosure may be used as the
				disclosure of the high and low in index performance for the calendar year next
				preceding the calendar year in which the loan is made for any loan made prior
				to March 1st of a calendar year.
If an application is accepted by telephone, the lender shall
				  mail, deliver or transmit by electronic media the required disclosure statement
				  within three business days.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 82 - Alternative Mortgage Instruments › Section 82.7 - Prepayment penalties

Current through Register Vol. 46, No. 28, July 10, 2024
In addition to the requirements set forth in section 5-501 (3)(b)  of the
				  General Obligations Law which limit prepayment penalties to the first year of a
				  mortgage loan, no prepayment penalty may be taken for any mortgage loan made
				  pursuant to this Part unless, 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 loan contract provides for a prepayment penalty and 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.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 82 - Alternative Mortgage Instruments › Section 82.8 - First lien revolving credit lines

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Notwithstanding the provisions of
				sections
				82.1
				through
				82.7  of this
				Part, except to the extent such provisions are incorporated herein, a lender
				may offer a revolving credit line secured by a first lien on the type of
				property described in section
				82.2(a)  of
				this Part, to a natural person who owns the property free of any prior mortgage
				lien, provided that the loan is made pursuant to the provisions of sections
				80.3,
				80.4  (excluding the
				provisions of sections
				80.4[c]), 80.5(b), 80.6 (without reference to Part 334 of the superintendent's
				regulations), 80.7, 80.8, 80.9 (excluding the provisions of sections
				80.9[e]) and 80.10 of this Title and, if applicable, subdivision 2 of section 590-a  of the Banking Law.
(b) Such loans may be made as fixed-rate
				loans or with the features authorized by this Part, provided that no such loans
				may contain negative amortization features.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 82 - Alternative Mortgage Instruments › Section 82.9 - Compliance with federal regulation

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Any bank, trust company, savings bank,
				savings and loan association, credit union, mortgage banker and branch or
				agency of a foreign banking corporation licensed pursuant to article 2 of the
				Banking Law which complies 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
				82.5 and
				82.6(a) 
				of this Part to the extent that sections
				82.5 and
				82.6(a) 
				pertain to adjustable-rate first lien mortgage loan transactions whether or not
				the transactions would otherwise be subject to section 226.19(b) or  12 CFR
				563.99(b).
(b) Any bank, trust
				company, savings bank, savings and loan association, credit union, mortgage
				banker, and branch or agency of a foreign banking corporation licensed pursuant
				to article 2 of the Banking Law which complies 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) 
				to the extent that sections
				80.4(a)
				 and
				80.10(c) 
				pertains to home equity plans whether or not the plans would otherwise be
				subject to sections 226.5b and 226.7; provided that such 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 83 - Shared Appreciation Mortgage Modification › Section 83.1 - Scope and application of this Part

Current through Register Vol. 46, No. 28, July 10, 2024
Section 6-f  of the Banking Law authorizes the
				  superintendent to adopt rules and regulations relating to shared appreciation
				  mortgages (certain terms used in this Part are defined in section
				  83.2  of this Part).
				  Accordingly, these regulations permit banks, trust companies, foreign banking
				  corporations licensed to maintain a branch or agency in this State, savings
				  banks, savings and loan associations, credit unions and persons and entities
				  engaging in the business described in section 590  of the
				  Banking Law (lender), to make residential mortgage loans, which provide for the
				  lender, or its assignee (together with lender, hereinafter defined as holder)
				  to receive a share in the future appreciation of the property serving as
				  security for the loan.
Section 6-f provides that a holder may enter into a written
				  agreement with a mortgagor under which the holder conditionally reduces an
				  amount of principal of the then outstanding mortgage loan in order to assist a
				  mortgagor at risk of foreclosure. The written agreement may permit the holder
				  to share in the appreciation of the market value of the residential property
				  securing such loan.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 83 - Shared Appreciation Mortgage Modification › Section 83.2 - Definitions

Current through Register Vol. 46, No. 28, July 10, 2024
For purposes of this Part:
(a)
Appraised value
means
				the dollar value determined by an independent and impartial analysis of the
				nature, quality, value or utility of a residential property conducted by an
				independent licensed appraiser.
(b)
Appraisal report
means any written or electronic communication
				of an appraised value, which shall include all information customary in such
				report.
(c)
Capital
				improvement
means any addition or alteration to real property that
				meets all three of the following conditions, in accordance with the New York
				State Department of Taxation and Finance, Tax Bulletin ST-104, and any
				clarifications or amendments thereto:
(1) it
				substantially adds to the value of the real property, or appreciably prolongs
				the useful life of the real property;
(2) it becomes part of the real property or
				is permanently affixed to the real property so that removal would cause
				material damage to the property or article itself; and
(3) it is intended to become a permanent
				installation.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 83 - Shared Appreciation Mortgage Modification › Section 83.3 - Eligibility requirements for shared appreciation mortgage modification

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Mortgage
				loans eligible for a shared appreciation mortgage modification.
A holder of a mortgage loan may enter into a shared
				  appreciation agreement with a mortgagor if the following conditions are
				  met:
(1) the mortgage loan is:
(i) a first lien mortgage loan with an unpaid
				principal balance (described below in section
				83.4 
				of this Part) that exceeds the appraised value of the residential property
				based on an appraisal report prepared no more than 150 days before the
				execution of a shared appreciation mortgage modification and shared
				appreciation agreement;
(ii) a
				junior lien mortgage loan satisfying the same criteria set forth in
				subparagraph (i) of this paragraph; or
(iii) a combination of a first and junior
				lien mortgage loan, both held by the same holder, which satisfies the criteria
				set forth in subparagraph (i) of this paragraph.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 83 - Shared Appreciation Mortgage Modification › Section 83.4 - Calculation of unpaid principal balance and principal reduction

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Unpaid
				principal balance.
For the purpose of this Part, the unpaid principal balance,
				  including the principal amount that would conditionally be reduced at the time
				  of consummation of the shared appreciation mortgage modification, shall be
				  calculated as follows:
(1) outstanding
				principal balance of the mortgage loan after application of the mortgagor's
				most recent contractual payment;
(2) less:
(i) the sum of all partial payments received,
				including unapplied partial payments held by the holder in any suspense
				account;
(3) plus:
(i) interest arrears calculated at the note
				rate that would have been in effect if the loan was performing;
(ii) escrow advances for real estate taxes,
				insurance premiums and other assessments paid on the mortgagor's behalf to any
				third party; and
(iii) reasonable
				and customary third-party attorney fees and other third-party expenses,
				including appraisals, broker price opinions incurred by the holder in
				connection with the mortgage loan. In order for the holder to include
				third-party fees in the calculation of unpaid principal balance, the holder
				must maintain proper documentation to demonstrate compliance with section
				419.10(b) and
				(c)  of this Title.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 83 - Shared Appreciation Mortgage Modification › Section 83.5 - Sharing of appreciation

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Shared
				appreciation agreements may provide that the mortgagor shall share, in
				accordance with section
				83.6 
				of this Part, in any appreciation in the value of the residential property with
				the holder in the event of a sale or transfer of the residential property or
				any interest therein, whether by deed, contract for deed or otherwise;
				including the following cases:
(1) sale or
				transfer for value that exceeds the outstanding principal balance of the
				modified mortgage loan;
(ii) taking of the
				residential property by eminent domain where payment is made for the full value
				of the property; or
(iii) casualty
				loss where the proceeds of the claim are used to repay the principal of the
				modified mortgage loan.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 83 - Shared Appreciation Mortgage Modification › Section 83.6 - Calculation of holder's share of appreciation in value

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Calculation
				of appreciation in value.
Appreciation in value of the residential property shall
				  be:
(1) market value received from the
				sale or transfer of the residential property, or in the case of a sale or
				transfer that is not for market value, the appraised value of the residential
				property at or around the time of the disposition;
(2) less:
(i) reasonable real estate
				commission(s);
(ii) capital
				improvement(s) net of applicable depreciation; and
(iii) the appraised value of the residential
				property determined on a date no earlier than 90 days prior to the date the
				parties entered into the shared appreciation agreement.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 83 - Shared Appreciation Mortgage Modification › Section 83.7 - Disclosures

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Disclosures
				required prior to transactions.
Prior to entering into a shared appreciation agreement a
				  holder must provide the mortgagor with a notice with a heading in bold,
				  14-point type stating that "IMPORTANT DISCLOSURES ABOUT THE CONTRACT IN WHICH
				  YOU AGREE TO GIVE AWAY A PART OF ANY FUTURE INCREASE IN VALUE OF YOUR HOME.
				  PLEASE READ CAREFULLY." The notice must include the following
				  disclosures:
(1) A statement that the
				holder will be entitled to receive a share of the appreciation in value of the
				residential property that occurs between the time of the loan modification and
				the time the property is sold or transferred.
(2) The limitation on the holder's share of
				appreciation in accordance with section
				83.6 
				of this Part.
(3) The methodology
				the holder is required to use in calculating the appreciation in the value of
				the residential property.
(4) At
				least three illustrations of how the appreciation will be shared at the time
				the mortgagor sells or transfers the property, or pays off the modified
				mortgage loan at maturity. Such examples to include:
(i) no appreciation in the value of the
				residential property;
(ii)
				appreciation of 20 percent; and
(iii) appreciation of 50 percent.
(5) A statement or notice to like
				effect: YOU SHOULD SEEK INDEPENDENT COUNSELING FROM A LAWYER, A HUD-CERTIFIED
				MORTGAGE COUNSELOR OR A TAX ADVISOR REGARDING:
(i) THE TRADE-OFF BETWEEN A CURRENT REDUCTION
				IN THE SIZE OF THE MORTGAGE AND THE PROMISE TO GIVE UP PART OF THE FUTURE
				INCREASE (APPRECIATION) IN THE VALUE OF YOUR HOME; and
(b) [(ii)] THE TAX CONSEQUENCES OF THE
				PRINCIPAL FORGIVENESS AND SHARED APPRECIATION AGREEMENT.
(6) A list of the names and contact
				information of at least five government approved housing counseling agencies in
				the county where the residential property is located; provided, however, that
				if there are fewer than five such counselors in that county, the list may
				include counselors in one or more neighboring counties.
(7) A statement on the potential effect of
				the shared appreciation agreement on any future refinancing of the modified
				mortgage loan and the potential effect of any prepayment or refinancing of the
				modified mortgage loan on the shared appreciation agreement.
(8) A notice to like effect that the
				mortgagor should consult with other lien holders of the subject residential
				property as to whether their liens contain clauses that could accelerate such
				lien holders' loans as a result of the mortgagor's execution of the shared
				appreciation agreement.
(9) A
				statement that the holder shall not secure a modified mortgage loan by any real
				or personal property, other than the residential property securing the modified
				mortgage loan, nor shall it seek a deficiency judgment in order to satisfy such
				modified mortgage loan.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 83 - Shared Appreciation Mortgage Modification › Section 83.8 - Statement on shared appreciation agreement

Current through Register Vol. 46, No. 28, July 10, 2024
Each shared appreciation agreement executed pursuant to the
				  provisions of section 6-f  of the Banking Law must contain a
				  conspicuous legend at the top of the agreement printed in at least 14-point
				  type, consisting of substantially the following language: "IN THIS AGREEMENT,
				  YOU ARE GIVING AWAY SOME OF ANY FUTURE APPRECIATION IN THE VALUE OF YOUR HOME.
				  PLEASE READ CAREFULLY."
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 83 - Shared Appreciation Mortgage Modification › Section 83.9 - Loss mitigation notification

Current through Register Vol. 46, No. 28, July 10, 2024
Every holder that engages in the business of offering
				  modified mortgage loans shall adopt policies and procedures with respect to the
				  notification process employed by such holder as are appropriate to inform
				  mortgagors at risk of foreclosure about the existence of a modified mortgage
				  loan.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 83 - Shared Appreciation Mortgage Modification › Section 83.10 - Fees, charges and interest rate

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Holders may
				charge at closing, simultaneously with the execution of the shared appreciation
				agreement, the following fees, costs and amounts; provided, however, that the
				holder discloses same pursuant to section
				83.7(b)(1) 
				of this Part and provided further that the costs or payments are actually paid
				or will actually be paid by the holder to a third-party provider:
(1) the appraisal fee for the appraisal
				report of the residential property; provided, however that the holder only
				collects the cost actually paid for the appraisal report. If circumstances
				require the holder to obtain a second appraisal report on the residential
				property, the cost of the second appraisal report shall not be charged to the
				mortgagor;
(2) fees or charges
				relating to any transfer, mortgage recording or related tax associated with the
				shared appreciation mortgage modification and shared appreciation
				agreement;
(3) fees or premiums for
				title examination, abstract of title, title insurance or similar
				purposes;
(4) the cost of tax
				search for tax liens existing at the time of closing if such search is not
				included in the title examination;
(5) the cost of a credit report, flood zone
				search and purchasing mortgage insurance;
(6) attorney fees, which shall be reasonable
				and customary; and
(7) such other
				fees as may be specifically authorized by State or Federal laws and regulations
				governing the origination of mortgage loans or loan modifications.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 84 - Certain Mortgage Loans › Section 84.1 - Explanatory note

Current through Register Vol. 46, No. 28, July 10, 2024
Chapter 1 of the Laws of 1983 vested in the Banking Board
				  broad authority to prescribe regulations governing loans secured by real estate
				  made by banks, trust companies, savings banks and savings and loan
				  associations. At the same time, chapter 1 deleted from the Banking Law certain
				  rigid technical requirements, principally in the area of maximum
				  loan-to-appraised value limitations, which had applied to such loans. This Part
				  establishes certain prudential requirements and applies to all loans secured by
				  real estate or cooperative apartment units, and to which the provisions of
				  sections 103(4), 235(5-a), 235(6), 380(1) and 380(3) apply. The provisions of
				  this Part do not apply to any loan with respect to which the Banking Board has
				  adopted regulations pursuant to either section 6-f  of the Banking Law (alternative mortgage
				  instruments) or sections 103(4-a), 235(6-a) and 380(4-a) of such law (junior
				  mortgage authority).
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 84 - Certain Mortgage Loans › Section 84.2 - Definitions

Current through Register Vol. 46, No. 28, July 10, 2024
For purposes of this Part:
(a) The term mortgage loan shall mean any
				loan made on the security of residential, nonresidential, improved or
				unimproved real estate where the lender relies upon such real estate as
				security for the loan, including a loan secured by a lien on an existing
				ownership interest in certificates of stock or other evidence of an ownership
				interest in, and for a proprietary lease from, a corporation or partnership
				formed for the purpose of the cooperative ownership of real estate. The term
				mortgage loan shall not include any loan not considered to be a loan upon the
				security of real estate within the meaning of section 103 (4)(b)  of the Banking
				Law.
(b) The term lender shall mean
				a bank, trust company, savings bank or savings and loan association organized
				under the provisions of the Banking Law.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 84 - Certain Mortgage Loans › Section 84.3 - Statement of policy

Current through Register Vol. 46, No. 28, July 10, 2024
Except as provided herein, the Banking Board has determined
				  not to reinstate specific loan limits for improved or unimproved real estate
				  per se or lending limits relating to locational requirements (except to the
				  extent that the same continue to be provided for in the Banking Law). At the
				  same time, the board expects lenders to make and purchase mortgage loans under
				  specific internal guidelines which are consistent with safe and sound banking
				  practices. Such guidelines shall, among other things, contain provisions which
				  ensure that the lender will meet the credit needs of its entire community,
				  including low- and moderate-income neighborhoods and establish limits
				  on:
(a) credit concentrations to any
				single mortgagor (including affiliates);
(b) credit concentrations by loan type and
				location; and
(c) loan-to-appraisal
				ratios.
These guidelines shall be available to the superintendent to
				  review in the course of any examination or investigation which he may
				  undertake.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 84 - Certain Mortgage Loans › Section 84.4 - Maximum mortgage loan for certain mortgagees

Current through Register Vol. 46, No. 28, July 10, 2024
No bank or trust company shall make a mortgage loan in an
				  amount in excess of 15 per centum of the capital stock, surplus fund and
				  undivided profits of such bank or trust company.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 84 - Certain Mortgage Loans › Section 84.5 - Appraisals

Current through Register Vol. 46, No. 28, July 10, 2024
Mortgage loans may be made by a bank, trust company, savings
				  bank or savings and loan association upon a written and signed certificate by
				  one person appointed by its board of directors or board of trustees which
				  states that the real property described in the mortgage has been examined and
				  which appraises the value of such property.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 85 - Investment In Service Corporations By Savings Banks And Savings And Loan Associations › Section 85.1 - Scope

Current through Register Vol. 46, No. 28, July 10, 2024
The provisions of this Part apply to all savings banks and
				  savings and loan associations which invest in the stock, capital notes and
				  debentures of service corporations. The authority contained in this Part shall
				  be in addition to any other lending or investment powers authorized by law or
				  regulation.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 85 - Investment In Service Corporations By Savings Banks And Savings And Loan Associations › Section 85.2 - Permitted activities

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
				Sections 235-d and
				379-b  of the Banking Law permit savings
				banks and savings and loan associations to invest in bank service corporations
				which may make such investments and render such services as are authorized for
				their parent savings banks or savings and loan associations, and which may
				engage in such other activities as may be prescribed by the Banking Board by
				general regulation. Savings banks and savings and loan associations may make
				such investments to the extent and upon the conditions that have been
				authorized by the Banking Board.
(b) A service corporation may engage in the
				following activities:
(1) originating,
				investing in, purchasing, selling, servicing or otherwise dealing in, directly
				or through participation, loans of any type which may be made by a thrift
				institution;
(2) providing services
				primarily for other financial institutions ( e.g., accounting, auditing,
				clerical, consulting, data processing, investment advisory,
				managerial);
(3) providing
				insurance brokerage or agency services;
(4) providing travel agency and tax
				preparation services;
(5) providing
				real estate services (e.g., brokerage, appraisal, inspection, property
				management);
(6) providing courier
				services;
(7) sponsoring,
				organizing and advising open-end mutual funds;
(8) providing securities services (e.g.,
				brokerage, investment advice);
(9)
				leasing personal property to customers;
(10) engaging in factoring;
(11) acquiring investment
				securities;
(12) issuing letters of
				credit;
(13) issuing credit cards
				and engaging in credit card operations;
(14) acquiring improved or unimproved real
				property for the purpose of subdividing, developing, constructing improvements
				thereon, and reselling, leasing or operating such property for the production
				of income; and
(15) any other
				activity specifically approved by the Banking Board.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 85 - Investment In Service Corporations By Savings Banks And Savings And Loan Associations › Section 85.3 - Investment procedures

Current through Register Vol. 46, No. 28, July 10, 2024
Any capital investment in either de novo or existing service
				  corporations by savings banks or savings and loan associations shall be made in
				  accordance with the procedures contained in this section.
(a) Prior notice. Savings banks and savings
				and loan associations which seek to make a capital investment in a service
				corporation which will engage in any of the activities listed in section
				85.2(b)(1)-(14) 
				of this Part, shall notify the superintendent, in writing, of such intention
				not less than 45 days prior to making such investment. If the superintendent
				does not object, in writing, within 45 days after receipt of a completed
				notice, the savings bank or savings and loan association may make the
				contemplated investment.
(b)
				Application to Banking Board. Savings banks and savings and loan associations
				which seek to make a capital investment in a service corporation which will
				engage in any activity requiring the specific approval of the Banking Board
				shall submit a written application therefor. The Banking Board may approve such
				application by a three-fifths vote of all its members.
(c) Information required. Savings banks and
				savings and loan associations which give the superintendent notice as specified
				in subdivision (a) of this section or make application to the Banking Board as
				specified in subdivision (b) of this section shall, together with such notice
				or application, as the case may be, submit the information required to be
				submitted by a bank or trust company in accordance with sections
				113.2 and
				113.3  of
				Supervisory Procedure CB 113 of this Title.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 85 - Investment In Service Corporations By Savings Banks And Savings And Loan Associations › Section 85.4 - Aggregate limitation

Current through Register Vol. 46, No. 28, July 10, 2024
The aggregate amount of a savings bank's or savings and loan
				  association's investments in the stock, capital notes and debentures of its
				  service corporations, together with the aggregate amount of loans to such
				  service corporations, shall not exceed 10 percent of the assets of such savings
				  bank or savings and loan association. This limitation shall not apply to loans
				  made to service corporations whose activities are limited to those specified in
				  section
				  85.2(b)(1) 
				  of this Part. For the purposes of this section, a loan shall include any loan
				  or advance made directly or indirectly to a service corporation (excluding
				  accounts payable incurred in the ordinary course of business and paid within 60
				  days) and guarantees, standby letters of credit or take-out commitments issued
				  to or for the account of its service corporations or their subsidiaries. For
				  example, a loan to a joint venture or other entity in which a service
				  corporation has a direct or indirect equity interest shall be deemed to be a
				  loan to a service corporation for the purposes of this
				  section.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 85 - Investment In Service Corporations By Savings Banks And Savings And Loan Associations › Section 85.5 - Debt limitation for service corporations

Current through Register Vol. 46, No. 28, July 10, 2024
No service corporation shall have total outstanding
				  consolidated debt (exclusive of accounts payable incurred in the ordinary
				  course of business and paid within 60 days, and capital notes and debentures)
				  exceeding 20 times the total consolidated net worth of the service corporation
				  (including capital notes and debentures). For the purposes of this
				  section:
(a) consolidated debt shall
				include the entire amount of any obligation resulting from the sale of assets
				with recourse; and
(b) capital
				notes and debentures shall refer those obligations which are subordinated to
				the claims of unsecured general creditors and which have an original average
				weighted maturity of at least seven years.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 85 - Investment In Service Corporations By Savings Banks And Savings And Loan Associations › Section 85.6 - Separate existence of service corporation

Current through Register Vol. 46, No. 28, July 10, 2024
Every service corporation shall be operated in a manner which
				  demonstrates to the public that the service corporation has separate corporate
				  existence and is operationally distinct from its parent savings bank or savings
				  and loan association. Every instrument which evidences a borrowing by a service
				  corporation shall specifically indicate whether or not, and to what extent, its
				  parent institution is liable for such borrowing.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 85 - Investment In Service Corporations By Savings Banks And Savings And Loan Associations › Section 85.7 - Examination of service corporation

Current through Register Vol. 46, No. 28, July 10, 2024
No savings bank or savings and loan association shall invest
				  in or make loans to any service corporation or subsidiary thereof after the
				  effective date of this Part, unless and until the parent institution has
				  executed and filed with the superintendent a letter agreement which (a) states
				  that the service corporation is subject to the general supervision of the
				  Banking Department, (b) permits periodic examinations of the service
				  corporation and/or any subsidiary thereof, as the superintendent deems
				  necessary, and (c) states that the parent institution will reimburse the
				  Banking Department for the total cost of such examinations.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 86 - Organization And Operation Of Stock-form Savings Banks And Savings And Loan Associations › Section 86.1 - Scope

Current through Register Vol. 46, No. 28, July 10, 2024
This Part implements the Banking Board's authority under
				  section 14-e  of the Banking Law to facilitate the
				  organization of stock-form savings banks and stock-form savings and loan
				  associations and the conversion of mutual savings banks and savings and loan
				  associations to stock form consistent with the declaration of policy of chapter
				  one of the Laws of 1984.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 86 - Organization And Operation Of Stock-form Savings Banks And Savings And Loan Associations › Section 86.3 - De novo chartering; conversions from federal charter to state charter, followed by a simultaneous conversion to stock-form

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Five or more persons may incorporate a
				stock-form thrift in accordance with the requirements of articles II and XV of
				the Banking Law governing the incorporation of a bank or trust company. If the
				shares of a de novo stock-form thrift will be offered in a public offering, an
				offering circular in the form prescribed in section
				86.15  of this
				Part shall be submitted to the superintendent for his approval within such time
				as shall be prescribed in this Part as a condition precedent to the issuance of
				an authorization certificate to such thrift.
(b) Where an existing federally chartered
				mutual savings bank or mutual savings and loan association proposes to convert
				to State charter pursuant to the provisions of Part 87 of this Title and
				simultaneously therewith to convert from mutual form to stock-form, any vote
				taken by the depositors of the Federal mutual thrift which is in compliance
				with the provisions of this Part shall be deemed equivalent to a vote required
				of the depositors of State-chartered mutual thrifts for purposes of this
				Part.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 86 - Organization And Operation Of Stock-form Savings Banks And Savings And Loan Associations › Section 86.5 - Public offering of capital stock in connection with the conversion of mutual thrift institutions to stock-form

Current through Register Vol. 46, No. 28, July 10, 2024
(a) A plan of conversion (except to the
				extent governed by inconsistent provisions of section
				86.6 
				or by section
				86.12 
				of this Part) shall, in addition to the requirements of section
				86.4 
				of this Part, contain provisions to the effect that:
(1)
(i)
				Each eligible account holder shall receive, without payment, nontransferable
				subscription rights to purchase capital stock of the converting institution in
				an amount no less than the maximum purchase limitation established for the
				public offering under paragraph (3) of this subdivision. In the event of an
				oversubscription for such shares, after shares have been allocated among
				subscribing eligible account holders so as to permit each such account holder,
				to the extent possible, to purchase 100 shares, shares shall be allocated among
				subscribing eligible account holders on such equitable basis, related to the
				amounts of their respective accounts, as may be provided in the plan of
				conversion.
(ii) Subscription
				rights to purchase capital stock received by officers, directors, trustees, and
				their associates, of the converting institution based on their increased
				deposits or shares in the converting institution in the one-year period
				preceding the eligibility record date shall be subordinated to all other
				subscription rights to purchase shares of capital stock granted pursuant to
				this Part.
(iii) The provisions of
				subparagraph (i) of this paragraph notwithstanding, a plan of conversion may
				contain a provision that gives the tax-qualified employee stock benefit plans
				of the converting institution (and, where applicable, a holding company formed
				in connection with its conversion to stock form) subscription rights to
				purchase up to 10 percent of the shares to be issued by the converting
				institution, and which subordinates the subscription rights of eligible account
				holders to those of such tax-qualified employee stock benefit plans.