N.Y. Comp. Codes R. & Regs. tit. 3 § 83.3

Current through Register Vol. 46, No. 51, December 18, 2024

Section 83.3 - Eligibility requirements for shared appreciation mortgage modification

(a) Mortgage loans eligible for a shared appreciation mortgage modification.

A holder of a mortgage loan may enter into a shared appreciation agreement with a mortgagor if the following conditions are met:

(1) the mortgage loan is:

(i) a first lien mortgage loan with an unpaid principal balance (described below in section 83.4 of this Part) that exceeds the appraised value of the residential property based on an appraisal report prepared no more than 150 days before the execution of a shared appreciation mortgage modification and shared appreciation agreement;

(ii) a junior lien mortgage loan satisfying the same criteria set forth in subparagraph (i) of this paragraph; or

(iii) a combination of a first and junior lien mortgage loan, both held by the same holder, which satisfies the criteria set forth in subparagraph (i) of this paragraph.

(2) The mortgagor is 60 or more days past due on payments of the mortgage loan(s), or the mortgage loan(s) is the subject of an active foreclosure action;

(3) The mortgagor's eligibility to enter into any of the following alternatives has been assessed and disclosed to the mortgagor by the holder in accordance with the disclosure requirements set forth in section 83.7(b)(10) of this Part, and the mortgagor has thereafter elected to enter into the shared appreciation agreement:

(i) a modification under the federal home affordable modification program (HAMP);

(ii) a modification offered under the government sponsored enterprises' (GSE) HAMP programs or proprietary modification programs, if the loan is owned by the GSE;

(iii) a modification offered by the Federal Housing Administration;

(iv) a proprietary modification offered by the holder, including a proprietary mortgage that includes a principal reduction, principal forbearance and/or principal forgiveness feature without a shared appreciation component; or

(v) traditional refinance, streamlined refinance or refinance under the Home Affordable Refinance Program (HARP) and the Federal Housing Administration Refinance Program.

N.Y. Comp. Codes R. & Regs. Tit. 3 § 83.3