N.Y. Comp. Codes R. & Regs. tit. 3 § 419.1

Current through Register Vol. 46, No. 25, June 18, 2024

Section 419.1 - Definitions

For purposes of this Part, unless otherwise stated herein, terms shall have the same meaning as set forth in Part 418 of this Title.

(a)Affiliated relationships means a relationship between two or more entities where one such entity, directly, or indirectly, through one or more intermediaries, controls, or is controlled by or is under common control with another such entity.

(b)Authorized representative means a person, including an attorney, employee or agent of a government agency, not-for-profit housing counseling organization, or legal services organization, designated by a borrower in a written authorization signed by the borrower, or any other form of verifiable authorization, to share information and communicate with a servicer on behalf of the borrower.

(c)Billing cycle means the interval between the days or dates of regular periodic statements. These intervals shall be equal and no longer than a quarter of a year. An interval will be considered equal if the number of days in the cycle does not vary more than four days from the regular day or date of the periodic statement.

(d)Borrower means a natural person obligated to pay a mortgage loan and, if applicable, such person's successor in interest or authorized representative when acting on behalf of such person.

(e)Business day means any day of the week except for Saturday, Sunday and any legal holiday.

(f)Complete loss mitigation application means a loss mitigation application for which a servicer has received the information that the servicer reasonably requires from a borrower to evaluate the loss mitigation options available to the borrower.

(g)Clearly and conspicuously means that the statement, representation or term being disclosed is of such size, color, and contrast and is so presented as to be readily noticed and understood by an ordinary consumer.

(h)Loss mitigation application means an oral or written request for a loss mitigation option that is accompanied by any information required by a servicer to evaluate the loss mitigation options available to the borrower.

(i)Loss mitigation option means an alternative to foreclosure, including, but not limited to, a loan modification, shared appreciation mortgage modification agreement, reinstatement, forbearance, deed-in-lieu, or short sale.

(j)Mortgagee shall mean the owner or assignee of a mortgage loan.

(k)RESPA means the Real Estate Settlement Procedures Act of 1974, 12 U.S.C. section 2601et seq. and regulations adopted thereunder, also sometimes known as regulation X, and found at 12 C.F.R. part 1024.

(l)Servicer means a person engaging in the servicing of mortgage loans in this State whether or not registered or required to be registered pursuant to paragraph (b-1) of subdivision (2) of Banking Law section 590.

(m)Servicing mortgage loans means receiving any scheduled periodic payments from a borrower pursuant to the terms of any mortgage loan, including amounts for escrow accounts under section 6-k of the Banking Law, title 3-A of article IX of the Real Property Tax Law or of RESPA of 1974 as amended ( 12 USC 2609 ), and making payments to the owner of the loan or other third parties of principal and interest and such other payments with respect to the amounts received from the borrower as may be required pursuant to the terms of the mortgage loan documents or servicing contract. In the case of a home equity conversion mortgage or reverse mortgage as referenced in section 6-h of the Banking Law, sections 280 and 280-a of the Real Property Law or 24 CFR 3500.2, servicing includes making payments to the borrower. The term includes a person who makes or holds a mortgage loan if such person also directly or indirectly is the holder of the mortgage servicing rights or has been delegated servicing functions for the mortgage loan.

(n)Settlement service means any service provided in connection with a prospective or actual settlement, including, but not limited to, any one or more of the following:

(1) origination of a federally related mortgage loan (including, but not limited to, the taking of loan applications, loan processing, and the underwriting and funding of such loans);

(2) rendering of services by a mortgage broker (including counseling, taking of applications, obtaining verifications and appraisals, and other loan processing and origination services, and communicating with the borrower and lender);

(3) provision of any services related to the origination, processing or funding of a federally related mortgage loan;

(4) provision of title services, including title searches, title examinations, abstract preparation, insurability determinations, and the issuance of title commitments and title insurance policies;

(5) rendering of services by an attorney;

(6) preparation of documents, including notarization, delivery, and recordation;

(7) rendering of credit reports and appraisals;

(8) rendering of inspections, including inspections required by applicable law or any inspections required by the sales contract or mortgage documents prior to transfer of title;

(9) conducting of settlement by a settlement agent and any related services;

(10) provision of services involving mortgage insurance;

(11) provision of services involving hazard, flood, or other casualty insurance or homeowner's warranties;

(12) provision of services involving mortgage life, disability, or similar insurance designed to pay a mortgage loan upon disability or death of a borrower, but only if such insurance is required by the lender as a condition of the loan;

(13) provision of services involving real property taxes or any other assessments or charges on the real property;

(14) rendering of services by a real estate agent or real estate broker; and

(15) provision of any other services for which a settlement service provider requires a borrower or seller to pay.

(o)Single point of contact means an individual or designated group of servicer personnel each of whom has the ability and/or authority to perform the responsibilities described in section 419.7(b) of this Part.

(p)Third-party provider means any person or entity retained by or on behalf of the servicer, including, but not limited to, foreclosure firms, law firms, foreclosure trustees, and other agents, independent contractors, subsidiaries and affiliates, that provides insurance, foreclosure, bankruptcy, mortgage servicing, including loss mitigation, or other products or services, in connection with the servicing of a mortgage loan.

(q)Transferee servicer means a servicer that has agreed to obtain the right to service a mortgage loan pursuant to an agreement or understanding.

(r)Transferor servicer means a servicer that has agreed to, or informed that it must, transfer the right to service a mortgage loan to another servicer.

(s)Plain language means written in a clear and coherent manner using words with common and every day meanings, appropriately divided and captioned reflecting its various sections, and understandable to those parties that will be receiving the content.

N.Y. Comp. Codes R. & Regs. Tit. 3 § 419.1

Amended New York State Register December 18, 2019/Volume XLI, Issue 51, eff. 12/18/2019