N.Y. Comp. Codes R. & Regs. Tit. 3 § 38.3 - Application disclosures and procedures
Article 12-D requires and authorizes the superintendent to promulgate regulations governing the disclosures which must be given and the procedures which must be followed at the time an application is taken. No mortgage broker, mortgage banker or exempt organization may take an application, application fee, credit report fee or property appraisal fee prior to making the disclosures set forth in this section. Each entity shall also comply with the procedures set forth in this section regarding the processing of applications. An application may be taken in writing, over the telephone or electronically transmitted. A written application, irrespective of how it is transmitted, should contain the following statement: "It is a crime to intentionally falsify information on this application." For oral applications, the mortgage broker, mortgage banker or exempt organization must make this statement to the borrower(s).
Nothing in this section shall prohibit a mortgage broker from taking a lock-in fee for transmittal to a mortgage banker or exempt organization subject to the restrictions imposed by section 38.6(c) of this Part.
In addition to the disclosures required by this section, each mortgage banker and exempt organization shall 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 shall contain a statement to this effect. The disclosure required by this subdivision must be no less conspicuous than the other disclosures made pursuant to this section.
Nothing in this section shall be construed to prohibit the taking of telephone applications. However, within 10 days of the taking of such application or filling out a borrower's worksheet, and in any event prior to the taking of any fee, the applicant must be given two 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 one copy of the application and the disclosures to the mortgage broker, mortgage banker or exempt organization. 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.
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