N.Y. Comp. Codes R. & Regs. tit. 3 § 82.2

Current through Register Vol. 46, No. 45, November 2, 2024

Section 82.2 - Scope

(a) Applicability. This Part applies to loans secured by a first mortgage on real property improved by a one- to four-family residence occupied by the owner (including individual condominium units) or by a first lien on an ownership interest in certificates of stock or other evidence of an ownership interest in, and a proprietary lease from, a corporation or partnership formed for the purpose of the cooperative ownership of real estate. For purposes of this Part all such loans are mortgage loans.

(b) Permissible features. Subject to the limitations set forth in section 82.3 of this Part, a lender may adjust the interest rate, payment, balance or term to maturity on any mortgage loan as is authorized by the loan contract. In addition, this Part authorizes a lender to make, sell, purchase or participate in balloon payment, growing equity and pledged account mortgage loans in a principal amount of less than $250,000 and which may be structured as nonamortizing or partially amortizing provided that a balloon-payment mortgage loan must have an initial fixed-rate period of three years.

(c) Loan-to-value ratio. The mortgage loans authorized by this Part may be made in an amount not exceeding 90 percent of the appraised value of the property, or 90 percent of the purchase price or the appraised value of the stock and lease in the case of a cooperative apartment unit, as calculated at the time the loan is made, provided that such loan-to-value ratio may equal 97 percent for any such loan except a balloon-payment mortgage loan if:

(1) in addition to provisions for full amortization of the loan, the loan contract requires, except in the case of cooperative apartment loans, that the pro rata portion of estimated annual taxes and assessment on the security property (based on the number of installments due annually) be paid to the lending institution with each installment payment; and

(2) during the time that the unpaid balance of the loan exceeds a loan-to-value ratio of 90 percent (as determined at the time the loan is made) the part of such balance exceeding 80 percent of value is guaranteed or insured by a mortgage insurance company; except that any unpaid loan balance secured by a pledged savings account or pledged securities or other guarantee or collateral, the value of which, as found in good faith by an officer of the lender, equals or exceeds the part of the loan balance exceeding 80 percent of the loan need not be so guaranteed or insured.

For mortgage loans in an amount greater than $250,000, the appraised value shall be determined by an appraiser licensed or certified or working under the supervision of an appraiser who is licensed or certified pursuant to article 6-E of the Executive Law.

(d) Term. The term of any such mortgage loan may not exceed 40 years; the term of any balloon-payment mortgage may not be less than three years.

(e) Electronic Disclosures and Notifications. Electronic disclosures and notifications are permitted as set forth in this Part. The term electronically transmitted or electronic media shall mean any transmission via diskette, wire or tape including but not limited to the Intranet (interactive or otherwise), the Internet, any other computer network, electronic mail, or any other similar method of transmission.

N.Y. Comp. Codes R. & Regs. Tit. 3 § 82.2