N.Y. Comp. Codes R. & Regs. Tit. 3 § 422.3 - Applicability and Exemption under RPAPL 1308

(a) Subject to the provisions of subdivisions (b), (c), and (d) of this section, the obligations imposed by RPA PL 1308 shall apply to every vacant and abandoned residential real property, irrespective of when the mortgage on the property was originated or became delinquent or when the property became vacant and abandoned.

(b)

(1) For each calendar year, the obligations imposed by RPA PL 1308 shall not apply during that calendar year to a mortgagee that is able to establish all of the following:

(i) it is a State or federally chartered bank, savings bank, savings and loan association, or credit union;

(ii) it engages in mortgage origination and mortgage ownership during the calendar year; and

(iii) it had less than three-tenths of one percent of the total loans in the state which the mortgagee either originated, owned, serviced, or maintained for the calendar year ending two years prior to the current calendar year.

(2) For purposes of subparagraph (iii) of this paragraph, whether a mortgagee had less than three-tenths of one percent of the total loans in the State during the calendar year ending two years prior to the current calendar year shall be calculated by dividing the number of mortgages issued in the State during that calendar year that the mortgagee originated, owned, serviced and/or maintained by the total number of residential real property mortgages originated in the State during the calendar year ending two years prior to the current calendar year.

(3) The "total number of residential real property mortgages originated in the State during the calendar year ending two years prior to the current calendar year" shall be determined by the superintendent, based on available data, and shall be published by the superintendent by November 15th of each year.

(c)

(1) The obligations imposed by RPA PL 1308 shall not apply to residential real property when the mortgage became delinquent before December 20, 2016, the effective date of RPA PL 1308, if a mortgagee is able to establish all of the following:

(i) it is a State or federally chartered bank, savings bank, savings and loan association, or credit union;

(ii) it engages in mortgage origination and mortgage ownership during the calendar year; and

(iii) it had between three-tenths of one percent and five tenths of one percent of the total loans in the state which the mortgagee either originated, owned, serviced, or maintained for the calendar year ending two years prior to the current calendar year.

(2) For purposes of subparagraph (1)(iii) of this subdivision, whether a mortgagee had between three-tenths of one percent and five-tenths of one percent of the total loans in the State during the calendar year ending two years prior to the current calendar year shall be calculated by dividing the number of mortgages issued in the State during that calendar year that the mortgagee originated, owned, serviced and/or maintained by the total number of residential real property mortgages originated in the State during the calendar year ending two years prior to the current calendar year.

(3) The "total number of residential real property mortgages originated in the State during the calendar year ending two years prior to the current calendar year" shall be determined by the superintendent, based on available data, and shall be published by the superintendent by November 15th of each year.

(d) If, after being subject to the obligations imposed by RPA PL 1308, a mortgagee becomes exempt pursuant to subdivision (b) or (c) of this section, then the obligations imposed by 1308 shall continue to apply to all residential real property that became vacant and abandoned before the mortgagee became exempt and for which the mortgagee continues to own the mortgage, and, if applicable, to residential real property that becomes vacant and abandoned after the mortgagee ceases to be exempt.

(e) The burden of proving an exemption pursuant to this subdivision is upon the mortgagee claiming it. In order to establish an exemption from the requirements of RPA PL 1308, a mortgagee must submit to the superintendent by February 28, 2017 for the 2017 calendar year and for each calendar year thereafter, by December 31st of the year preceding the calendar year in which the exemption is being sought, on the form required by the superintendent, a statement providing the basis for which the mortgagee satisfies all three requirements of the relevant subsection. The statement shall also identify all real property that, by application of subdivision (d) of this section, will remain subject to the requirements in RPA PL 1308. If a mortgagee fails to timely provide the statement required by this subdivision, the mortgagee shall not satisfy the provisions of subdivision (b) or (c) of this section for that calendar year.

(f)

(1) Subject to paragraph (2) of this subdivision, for all mortgages that are 90 days or more delinquent on December 20, 2016, the initial inspection required by RPA PL 1308 (1) must be made on or before February 1, 2017.

(2) For any residential real property that satisfies the definition of vacant and abandoned in RPA PL 1309 as of December 20, 2016, the requirements in RPA PL 1308 (3) must be satisfied by February 1, 2017.

(g) Pursuant to RPA PL 1308 (11), State or federally chartered banks, savings banks, savings and loan associations and credit unions that qualify for the exemption under subdivision (b) of this section, and that are parties to the department's Industry Best Practices: Inspecting, Securing and Maintaining Vacant and Abandoned Properties in New York, issued in May 2015, shall continue to be subject to that agreement for so long as the terms and conditions of the agreement remain in effect.

Notes

N.Y. Comp. Codes R. & Regs. Tit. 3 § 422.3

Adopted New York State Register December 21, 2016/Volume XXXVIII, Issue 51, eff. 12/21/2016