N.Y. Comp. Codes R. & Regs. Tit. 3 § 80.8 - Rate of interest and permitted charges

The rate or rates of interest that a lender may take or receive on a junior mortgage loan shall be the rate or rates agreed upon by the lender and the borrower. Such interest may be charged relative to unpaid principal balances or may be precomputed; provided that if a precomputed junior mortgage loan is repaid prior to maturity for any reason, any unearned interest shall be refunded according to the actuarial method based on scheduled remaining balances. The unpaid principal balance may include items listed in subdivisions (a)-(u) of this section. No fee, commission, expense or other charge to the borrower in addition to the interest charge provided for in this section shall be taken, received, reserved or contracted for by a lender in connection with the making or maintenance of a junior mortgage loan, except, where applicable, to the extent not otherwise inconsistent with any other provision of law:

(a) a loan origination fee, commitment fee or similar charge;
(b) a fee or charge for appraising or surveying the property securing such junior mortgage loan;
(c) fees or premiums for a title examination, an abstract of title, title insurance or similar purposes, a credit report fee and a fee taken at closing for a search for tax liens existing at the time of closing if such search is not included in the title examination provided such fees or premiums actually will be paid by the lender;
(d) fees or charges prescribed by law which actually are or will be paid by the lender to public officials for determining the existence of or for perfecting or releasing or satisfying any security related to the junior mortgage loan;
(e) fees or charges which actually are or will be paid by the lender for any transfer, mortgage recording or related tax;
(f) reasonable attorney's fees representing actual fees charged to the lender in connection with the closing of such junior mortgage loan;
(g) charges for credit life, credit accident and health insurance, credit unemployment insurance, and mortgage guaranty insurance;
(h) reasonable attorney's fees not in excess of 15 percent of the unpaid debt in the event of default if such junior mortgage loan is referred to an attorney who is not a salaried employee of the lender for collection;
(i) a late charge on any payment that is due and unpaid;
(j) fees or charges for processing stop payment orders;
(k) fees or charges for handling checks drawn on insufficient funds in accordance with the provisions of section 5-328 of the General Obligations Law;
(l) fees or charges for replacing lost or stolen checks;
(m) fees or charges for printing checks;
(n) fees or charges for converting, at the borrower's request, all or part of a loan to a closed- end fixed or variable rate term loan;
(o) fees or charges for reducing the interest rate on existing junior lien loans or for any other loan modification requested by the borrower;
(p) fees or charges taken at closing for a flood zone search;
(q) an annual fee;
(r) an application fee and/or processing fee each in an amount reasonably related to the services to be performed on behalf of the applicant, which fee shall not be figured as a percentage of the principal amount of the loan, credit line or amount financed;
(s) fees or charges for dishonoring a check(s) that cannot be approved since the borrower is in violation of the terms of the agreement or where payment of such a check(s) would cause the borrower to be in violation of the terms of the agreement, but not more than once in a monthly billing cycle;
(t) an overlimit fee or charge which may be imposed whenever the specified credit limit is exceeded, but not more than once in a monthly billing cycle; and
(u) such other fees or charges as may be specifically authorized by rule or regulation.

The fees and/or charges permitted in subdivisions (j), (l), (m), (q), (s) and (t) of this section are permitted only in connection with a revolving credit account.


N.Y. Comp. Codes R. & Regs. Tit. 3 § 80.8

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