Tag Archive: "New York"
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New York Adopts Force-Placed Insurance Regulation
By Margaret Wright, J.D.Effective February 6, 2015, New York has adopted regulations concerning force-placed insurance. As a result of an investigation, the New York State Department of Financial Services had found that current force-placed insurance practices were resulting in excessive force-placed insurance rates, inadequate notice to consumers and questionable business practices and relationships.Notice RequirementThe new […]
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New York Adopts Shared Appreciation Mortgage Modification
by: Margaret Wright New York has adopted regulations concerning shared appreciation mortgage modification as Title 3 NYCRR Part 83. Upon the sale of a residential property, a shared appreciation agreement provides a share to the lender or servicer in the appreciation of the value of the property. In order to have a shared appreciation agreement, […]
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New York Adopts Credit Exposure Provisions
by: Margaret WrightOn April 9, 2014, the New York Department of Financial Services adopted an emergency rule regarding credit exposure arising from derivative transactions. The April 9, 2014 emergency rule is effective immediately, however is set to expire June 22, 2014. Beginning in January 2013, similar emergency rules have been adopted concerning the same topic; […]
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New York Amends Meaning of Sub-Prime Terms
by: Nicole LegereThe New York Department of Financial Services recently amended several provisions of the sub-prime banking law in an effort to update specific terms relative to sub-prime home loans. Specifically, the amendments addressed the definition of the terms “week,” “good faith estimate” and “commitment” which are found in Part 43. Each of these terms […]
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New York Issues Banking Law Guidance for Subprime Loans
by: Nicole LegereThe New York Department of Financial Services (the Department) has issued additional guidance on the interpretation of state banking law. This is in response to recent readings of section 6-m of the New York Banking Law, which have resulted in a number of loans being incorrectly deemed sub-prime. Under section 6-m, a sub […]
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New York Amends Loan Originator Compensation Rules
by Nicole Legere, Esq.Senior Counsel New York has recently enacted several new amendments intended to clarify permissible forms of loan originator compensation. Specifically, these amendments address yield spread premiums (YSP’s) which are fees paid to the broker from the lender, and are often based on the terms of the loan. YSP’s were found to be confusing to […]
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New York Amends Laws for Mortgage Loan Originators
by Nicole Legere, Esq.Associate Counsel New York Banking Law Article 12-E governing mortgage loan originators (MLOs) was recently amended to conform to federal regulations. Pursuant to the federal SAFE Act, any state MLO licensing schemes that do not satisfy a minimum standard is preempted and HUD is charged with implementing a licensing scheme in those […]