N.Y. Comp. Codes R. & Regs. Tit. 3 § 4.3 - Amounts not included as interest in certain home mortgage loans
The term interest for purposes of subdivision (a) of section 4.2 of this Part shall not include the following amounts payable in connection with the loan or forbearance, if itemized in writing to the borrower:
(a) a reasonable fee in consideration for the
legally enforceable written commitment of the lender to reserve funds for
future disbursement to the borrower, provided such commitment was made prior to
November 1, 1968;
(b) reasonable
fees, charges and costs for the following services actually and necessarily
rendered:
(1) appraisal of property securing
the loan or forbearance;
(2)
preparation of surveys, abstracts or similar documents;
(3) title examinations, examinations of
public records or similar procedures;
(4) title insurance;
(5) legal services and reasonable
disbursements related thereto;
(6)
notarizations, authentications or similar procedures; and
(7) periodic inspections related to advances
to be made under the loan agreement;
(c) fees and charges prescribed by law for
determining the existence of or for filing, recording or otherwise perfecting
or releasing or satisfying any security, or the premiums, not in excess of such
fees and charges, payable for any insurance in lieu of perfecting the
security;
(d) actual and lawful
charges or premiums for:
(1) completion or
performance bonds;
(2) insurance
against loss of or damage to property securing the loan or
forbearance;
(3) insurance against
liability arising out of the ownership or use of property securing the loan or
forbearance; and
(4) credit life,
accident or health insurance if the same is:
(i) not a condition of the loan or
forbearance and such fact is clearly disclosed in writing to the borrower;
and
(ii) requested in writing by
the borrower after written disclosure to him of the cost thereof;
(5) mortgage guaranty insurance as
and to the extent:
(i) premiums for such
insurance are excepted from interest for the purposes of section
5-501 of the General Obligations Law;
and
(ii) the mortgagor may be
required to pay such premiums; as provided in article 65 of the Insurance Law
or such other law or laws and regulations promulgated pursuant thereto as may
be applicable;
(e) charges for the payment of transfer,
mortgage recording and other taxes and governmental charges;
(f) funds held by the lender for future
payments of taxes, assessments, water or sewer charges and insurance premiums
described in subdivision (d) of this section;
(g) fees and charges paid or payable pursuant
to a written agreement or modification thereof between the lender and the
borrower upon the occurrence of specific acts or defaults of the borrower, such
as:
(1) prepayment penalties;
(2) charges for delinquent or late payments;
and
(3) collection fees;
(h) any amount paid or payable by
or for a third-party employer to a lender to aid in financing the sale of a
residence owned by an employee of such third-party employer or the purchase of
a residence by such employee, provided the third-party employer certifies in
writing to the borrower that he will not be required to reimburse the third
party, either in whole or in part, directly or indirectly, for any such
payment; and
(i) such other fees
and charges as may be specifically authorized by Federal or State law or
regulation.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.