N.Y. Comp. Codes R. & Regs. tit. 3 § 83.4

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

Section 83.4 - Calculation of unpaid principal balance and principal reduction

(a) Unpaid principal balance.

For the purpose of this Part, the unpaid principal balance, including the principal amount that would conditionally be reduced at the time of consummation of the shared appreciation mortgage modification, shall be calculated as follows:

(1) outstanding principal balance of the mortgage loan after application of the mortgagor's most recent contractual payment;

(2) less:

(i) the sum of all partial payments received, including unapplied partial payments held by the holder in any suspense account;

(3) plus:

(i) interest arrears calculated at the note rate that would have been in effect if the loan was performing;

(ii) escrow advances for real estate taxes, insurance premiums and other assessments paid on the mortgagor's behalf to any third party; and

(iii) reasonable and customary third-party attorney fees and other third-party expenses, including appraisals, broker price opinions incurred by the holder in connection with the mortgage loan. In order for the holder to include third-party fees in the calculation of unpaid principal balance, the holder must maintain proper documentation to demonstrate compliance with section 419.10(b) and (c) of this Title.

N.Y. Comp. Codes R. & Regs. Tit. 3 § 83.4