New York Origination Reference Guide
- Kacey Olson
Owned by Kacey Olson
| Citation | Topic | Requirement |
General Regulations of the Banking Board / N.Y. Comp. Codes R. & Regs. tit. 3, §80.4(b) N.Y. Comp. Codes R. & Regs. tit. 3, §82.6(b) | Balloon Payment Mortgage Loan Disclosure (Not Guaranteed) | In the case of a balloon payment mortgage loan, the pre-application disclosure must also contain a notice and may be given in writing or via electronic media and must also be in included in the loan contract. |
| General Regulations of the Banking Board / N.Y. Comp. Codes R. & Regs. tit. 3, §41.5(b) | Borrower Tangible Net Benefit Worksheet | A lender will be considered by the Superintendent to have provided a tangible net benefit to the borrower if a high cost home loan meets the following criteria: the borrower receives a monetary benefit, such as receipt of additional proceeds, a reduction of the outstanding mortgage debt, a lowering of the annual percentage rate, and/or a lowering of the monthly payments of principal and interest, taking into consideration the totality of the circumstances, including, but not limited to, the amount of the monetary benefit, the loan product and the borrower’s repayment ability, current and expected income and current obligations; provided, however, that if the monthly payment of principal and interest and/or the mortgage debt increases, a commensurate monetary benefit must ensue to the borrower. |
| General Regulations of the Banking Board / N.Y. Comp. Codes R. & Regs. tit. 3, §38.4 | Commitment Agreement | With respect to any commitment to make a mortgage loan, the applicant must be provided with a written disclosure, at or before the time a commitment is given, which discloses the fees to be paid in connection with the commitment and the loan, or the manner in which fees will be determined and the conditions under which the fees may be refundable, plus additional terms and conditions. |
| General Regulations of the Banking Board / N.Y. Comp. Codes R. & Regs. tit. 3, §41.3(a) | Consumer Caution and Home Ownership Counseling Notice | Within 3 days after determining that a loan is a high-cost home loan, but no less than 10 days before closing, a lender or mortgage broker may not make or arrange a high-cost home loan unless either the lender or the mortgage broker has delivered to the borrower in writing, on a separate form, either placed in the mail, faxed or electronically transmitted, a Consumer Caution and Home Ownership Counseling Notice |
| General Regulations of the Banking Board / N.Y. Comp. Codes R. & Regs. tit. 3, §41.3(a) | Counseling Disclosure and List of Counselors | At the time of application for a high cost home loan, a lender or mortgage broker must deliver, place in the mail, fax or electronically transmit in at least 12-point type to the borrower, on a separate form, a list of counselors. Disclosure is also required for Subprime loans under N.Y. Banking Law §6-M(2). |
| Reverse Mortgage Loans / N.Y. Comp. Codes R. & Regs. tit. 3, §79.11(c) | Disclosure of Scheduled Payments | Prior to a borrower's receiving counseling, if available, the lender must furnish for term loans, a schedule of estimated payments to the borrower and the total payment in dollars over the term of the loan. For tenure loans, a schedule of estimated payments to the borrower must be furnished. The lender must label the schedules as “estimates.” If counseling is not available, the lender must make the disclosure prior to or at the time an application is approved. |
| Banking Law / N.Y. Banking Law §6-l(2) | Disclosure of Taxes and Insurance Payments | At the time a borrower is informed of the anticipated or actual periodic payment amount for a specific property in connection with a high-cost first-lien residential mortgage loan, the lender or mortgage broker must also inform the borrower that an additional amount will be due for taxes and insurance and must disclose to the borrower as soon as reasonably possible the approximate amount of the initial periodic payment for property taxes and hazard insurance. Disclosure is also required for Subprime Home Loans under N.Y. Banking Law §6-M(5). |
| General Regulations of the Banking Board / N.Y. Comp. Codes R. & Regs. tit. 3, §38.12 | Dual Agency Disclosure | Must be provided at the first substantive contact between a mortgage broker and a buyer/borrower when the mortgage broker is also the real estate broker in same real estate transaction. |
| N.Y. Gen. Bus. Law §380-b(b) | Fair Credit Reporting Act Disclosure(Consumer Report Disclosure) | A person may not request a consumer report, other than an investigative consumer report, in connection with an application for credit unless the applicant is first informed in writing or in the same manner in which the application is made. |
| General Regulations of the Banking Board / N.Y. Comp. Codes R. & Regs. tit. 3, §38.13(d) | FHA Mortgage Loan Correspondent Disclosure | A mortgage broker, who is an FHA mortgage loan correspondent, must provide this disclosure prior to accepting an application, application fee, credit report fee or property appraisal fee. |
| General Regulations of the Banking Board / N.Y. Comp. Codes R. & Regs. tit. 3, §41.4(a) | High Cost Home Loan Disclosure | In addition, at or prior to taking an application, mortgage lenders and brokers must deliver, place in the mail, fax or electronically transmit to the borrower a High Cost Home Disclosure, if applicable. In the event that the lender or broker does not know whether the borrower's application is a high-cost home loan application, the disclosure must be made within 3 days after the lender determines that it is a high-cost home loan application, but in any event, at least 10 days prior to the closing. In the event of a telephone application, the disclosure must be made within 3 days after receipt of the application by telephone, but in any event, at least 10 days prior to the closing. In order to utilize electronic transmission, the lender or broker must first obtain either written or electronically transmitted permission from the borrower. |
| General Regulations of the Banking Board / N.Y. Comp. Codes R. & Regs. tit. 3, §41.7 | High-Cost Home Loan Mortgage Legend | High-cost home loan mortgages must include a legend on top of the mortgage in 12-point type stating that the mortgage is a high-cost home loan subject to New York's Anti-Predatory Lending Law. If the mortgage document form is prescribed by a government-sponsored entity, the legend must be placed on a separate document and attached to the front of the mortgage document. |
| General Regulations of the Banking Board / N.Y. Comp. Codes R. & Regs. tit. 3, §38.3(d) | Interest Rate-Lock Timing Disclosure | Each mortgage investing institution must disclose in writing or via electronic media to each applicant for a mortgage loan when the interest rate for the loan will be set. If it is the policy of the mortgage banker or exempt organization to allow the applicant to choose when the rate will be set, then the disclosure must contain a statement to this effect. The disclosure must be no less conspicuous than the other disclosures. |
| N.Y. Real Prop. Law §254-B(1) | Late Fees | With respect to a mortgage secured by a 1- to 6-family owner-occupied residence, a lender may charge up to 2% of an installment that is at least 15 days late. |
| General Regulations of the Banking Board / N.Y. Comp. Codes R. & Regs. tit. 3, §80.4(c) | Legal Advisory for Junior Lien Mortgage Loans and HELOCs | In the case of a junior lien mortgage loan, the following statement must be included in the pre-application disclosure or provided separately, in at least 10-point bold face type: YOU SHOULD CHECK WITH YOUR LEGAL ADVISOR AND WITH OTHER MORTGAGE LIEN HOLDERS AS TO WHETHER ANY PRIOR LIENS CONTAIN ACCELERATION CLAUSES WHICH WOULD BE ACTIVATED BY A JUNIOR ENCUMBRANCE. |
| General Regulations of the Banking Board / N.Y. Comp. Codes R. & Regs. tit. 3, §38.9(b) | Limitations on Excess Hazard Insurance Disclosure | The Limitations on Excess Hazard Insurance disclosures may be incorporated into the application or commitment or into one or more forms required by state or federal law or in a separate form. Within 3 business days of any electronic transmission of this disclosure, a hard copy of the disclosure must be mailed to each mortgagor who indicates that he or she does not have the computer capacity to down-load and print the disclosure. When a hard copy of the disclosure is not mailed to the mortgagor, the mortgage banker or exempt organization must be able to demonstrate that information was obtained on the mortgagor's computer capacity to down-load and print the disclosure. |
| General Regulations of the Banking Board / N.Y. Comp. Codes R. & Regs. tit. 3, §38.4(a) | Loan Commitment | With respect to any commitment to make a mortgage loan, the applicant must be provided with a written disclosure, at or before the time a commitment is given, which discloses the fees to be paid in connection with the commitment and the loan, or the manner in which fees will be determined and the conditions under which the fees may be refundable. For a breakdown of the required disclosures in the loan commitment see citation. |
| General Regulations of the Banking Board / N.Y. Comp. Codes R. & Regs. tit. 3, §38.6(a) | Lock-in Agreement | Before taking any points or a lock-in fee, a mortgage banker or exempt organization must provide the applicant with a lock-in agreement signed and dated by the entity and the applicant. |
| Banking Law / N.Y. Banking Law §599-P | NMLS Unique Identifier | The NMLS unique identifier of any person originating a residential mortgage loan must be clearly shown on all residential mortgage loan application forms, solicitations or advertisements, including business cards or websites, and any other documents as established by rule, regulation or order of the Superintendent. |
| General Regulations of the Banking Board / N.Y. Comp. Codes R. & Regs. tit. 3, §38.6(b) | Notice of Expiration of Loan Commitment | A notice of expiration of the commitment period must be a separate document and must be mailed or electronically transmitted to each applicant not less than 12 business days nor more than 20 business days prior to the expiration of the commitment period. |
| General Regulations of the Banking Board / N.Y. Comp. Codes R. & Regs. tit. 3, §38.6(b) | Notice of Expiration of Lock-in Agreement | The notice of expiration of the lock-in period must be a separate document and must be mailed or electronically transmitted to each individual applicant not less than 12 business days nor more than 20 business days prior to the expiration of the lock-in period provided the expiration is more than 12 business days from the date the rate is locked irrespective of whether a lock-in fee is paid to the lender. With regard to electronic notices of expiration, within 3 business days of the electronic transmission of a notice of expiration, a hard-copy of the notice must be mailed to the applicant who indicates that he does not have the computer capacity to down-load and print the notice. |
| General Regulations of the Banking Board / N.Y. Comp. Codes R. & Regs. tit. 3, §41.4(d) | Notice to Borrower | Statement in a minimum of 12-point type must appear directly above the borrower's signature line on the application. If the mortgage application form is prescribed by a GSE, the statement must be placed on a separate document and attached to the front of the mortgage application. In the event of telephone applications, this disclosure must be made to the borrower within 3 days of receipt of an application, but in any event at least 10 days prior to the closing whether or not funds are then disbursed. In the event that the lender or broker does not know whether the borrower's application is a high-cost home loan application, the disclosure must be made within 3 days after the lender determines that it is a high-cost home loan application, but in any event, at least 10 days prior to closing. |
| General Obligations Law / N.Y. Gen. Oblig. Law §15-702(3) | Notice to Cosigner | This notice must be provided prior to a co-signer becoming obligated on a loan and may be on a separate sheet, attached to a guarantee or similar instrument, or part of the note, contract, or other writing evidencing the consumer credit transaction |
| General Regulations of the Banking Board / N.Y. Comp. Codes R. & Regs. tit. 3, §41.5(b) | Optional Products, Goods or Services Disclosure | At least 10 business days before the loan is closed whether or not funds are then disbursed, lender must make a separate oral and a separate written disclosure to the borrower containing the following information: (1) the cost of products or other goods and services; (2) the fact that the products, goods or services as offered to the borrower by the lender will be either prepaid or calculated, earned and paid on a monthly or regular periodic basis; and (3) that the purchase of products, goods or services is not required to obtain the mortgage loan. The written disclosure must also contain a signed and dated acknowledgment by the borrower that the oral disclosure was made and a signed and dated acknowledgment by the lender that the oral disclosure was made. |
| General Regulations of the Banking Board / N.Y. Comp. Codes R. & Regs. tit. 3, §80.4(a) | Pre-Application Disclosure (Alternative Mortgage) | Before accepting an application for an alternative mortgage loan, a lender must disclose to each loan applicant in writing or via electronic media, and in plain language, the terms of the type(s) of loan(s) available to the applicant. If an application is accepted by telephone, the disclosure must be mailed, delivered or transmitted by electronic media within 3 business days. See also N.Y. Comp. Codes R. & Regs. tit. 3, §82.6(a). |
| General Regulations of the Banking Board / N.Y. Comp. Codes R. & Regs. tit. 3, §38.3(c) | Pre-Application Disclosure and Fee Agreement (Mortgage Banker acting as Broker) | Prior to taking an application or collecting an application fee, credit report fee or appraisal fee, every mortgage banker or exempt organization acting as a mortgage broker must disclose to the applicant in writing or via electronic media certain terms. |
| General Regulations of the Banking Board / N.Y. Comp. Codes R. & Regs. tit. 3, §38.3(b) | Pre-Application Disclosure and Fee Agreement (Mortgage Banker) | When a commitment fee or points are paid or will be paid to the lender prior to closing, then prior to the taking of an application, application fee, credit report fee or property appraisal fee, every mortgage banker or exempt organization must disclose in writing or via electronic media to each applicant certain terms. |
| General Regulations of the Banking Board / N.Y. Comp. Codes R. & Regs. tit. 3, §38.3(a) | Pre-Application Disclosure and Fee Agreement (Mortgage Broker) | Before taking an application or collecting an application fee, credit report fee or property appraisal fee, every mortgage broker must disclose to the applicant in writing or via electronic media certain terms. |
| General Regulations of the Banking Board / N.Y. Comp. Codes R. & Regs. tit. 3, §38.5(b) | Prevailing Interest Rate Commitment | A mortgage banker or exempt organization may issue a prevailing rate commitment. Prior to acceptance of a commitment fee, points, or other discounts. |
| Banking Law / N.Y. Banking Law §6-K(2) | Real Property Insurance Escrow Account Disclosure | At the time an escrow account is established for the payment of insurance premiums, a mortgage investing institution must provide the borrower with a written disclosure containing language provided in N.Y. Banking Law §6-K(2). |
| Reverse Mortgage Loans / N.Y. Comp. Codes R. & Regs. tit. 3, §79.11(a) | Reverse Mortgage Loan Application Disclosure | Prior to accepting an application for a reverse mortgage loan, but in any event prior to a lender accepting an application fee, a lender must disclose to each applicant information relevant to the type of loan, including following statement: YOU SHOULD CONSULT YOUR TAX, LEGAL OR FINANCIAL ADVISERS OR CONSULT WITH APPROPRIATE AUTHORITIES REGARDING ENTITLEMENTS AND TAX AND ESTATE PLANNING CONSEQUENCES OF A REVERSE MORTGAGE LOAN. YOU MAY CONTACT THE AREA AGENCY ON AGING (INSERT TELEPHONE NUMBER) FOR NAMES OF ADVISORS OR CONSULTANTS AVAILABLE IN YOUR COMMUNITY. In addition, where available, the lender must furnish the applicant with a statement prepared by the local or county office for the aging of the locality or county where the mortgagor(s) reside concerning the availability and advisability of independent counseling and information services. |
| Banking Law / N.Y. Banking Law §6-M(1) | Subprime Loan Thresholds | “Subprime home loan” means a home loan in which the initial interest rate or the fully indexed rate, whichever is higher, exceeds the average national rate with a comparable duration to the duration of the home loan (as published by the Freddie Mac in its weekly Primary Mortgage Market Survey posted in the week prior to the week in which the lender provides the “good faith estimate”/"loan estimate" required under RESPA) by more than: (1) 1.75 percentage points for a first-lien loan not insured by FHA; (2) 2.50 percentage points for a first-lien loan, if insured by FHA; (3) 3.75 percentage points for a subordinate-lien loan not insured by FHA; or (4) 4.50 percentage points for a subordinate-lien loan, if insured by FHA. The comparable duration for a home loan is determined as follows: (1 )for an adjustable or variable rate home loan with an initial rate that is fixed for less than 3 years, the Average Prime Offer Rate (APOR) as published by the Federal Financial Institutions Examination Council (FFIEC) for a 1-year adjustable rate mortgage; (2) for an adjustable or variable rate home loan with an initial rate that is fixed for at least 3 years, the Freddie Mac average national rate survey result for a 5-year hybrid adjustable rate mortgage; (3) for a fixed rate home loan with a term of 15 years or less, the Freddie Mac average national rate survey result for a 15-year fixed rate mortgage; and (4) for a fixed rate home loan with a term of more than 15 years, the Freddie Mac average national rate survey result for a 30-year fixed rate mortgage. |
| General Regulations of the Banking Board / N.Y. Comp. Codes R. & Regs. tit. 3, §38.3(e) | Telephone Applications | Within 10 days of the taking of a telephone application or the filling out a borrower's worksheet, and in any event prior to the taking of any fee, the applicant must be given 2 copies of the application or the worksheet and of the appropriate disclosures for review by the applicant. The applicant must also be provided with a stamped self-addressed return envelope and a written request that the applicant sign and return 1 copy of the application and the disclosures. In those instances in which a worksheet and pre-application disclosures are provided to the applicant, the applicant need only sign and return the disclosures. |
| N.Y. Exectutive Law § 296-a | Unlawful discriminatory practices | In the case of applications for credit with respect to the purchase, acquisition, construction, rehabilitation, repair or maintenance of any housing accommodation, land or commercial space to discriminate against any such applicant because of the race, creed, color, national origin, sexual orientation, military status, age, sex, marital status, disability, or familial status of such applicant or applicants or any member, stockholder, director, officer or employee of such applicant or applicants, or of the prospective occupants or tenants of such housing accommodation, land or commercial space, in the granting, withholding, extending or renewing, or in the fixing of the rates, terms or conditions of, any such credit |