3 CRR-NY 419.5NY-CRR

OFFICIAL COMPILATION OF CODES, RULES AND REGULATIONS OF THE STATE OF NEW YORK
TITLE 3. BANKING
CHAPTER III. SUPERINTENDENT'S REGULATIONS
SUBCHAPTER B. NON-BANKING ORGANIZATIONS
PART 419. SERVICING MORTGAGE LOANS: BUSINESS CONDUCT RULES
3 CRR-NY 419.5
3 CRR-NY 419.5
419.5 Fees.
(a) Schedule of fees.
A servicer shall maintain and keep current a schedule of standard or common fees that may be charged to a borrower. A servicer shall make its schedule available on its public website and to a borrower upon request. The schedule shall identify each fee, provide a plain language explanation of when and why the fee will be charged and state the amount of the fee or range of amounts or, if there is no standard fee, how the fee is calculated or determined.
(b) Authorized fees.
A servicer may only collect a fee if it is for a service that is actually rendered to the borrower, reasonably related to the cost of rendering that service, and it meets one of the following conditions:
(1) the fee is expressly authorized and clearly and conspicuously disclosed by the loan instruments and not prohibited by law;
(2) the fee is expressly permitted by law and not prohibited by the loan instruments; or
(3) the fee is not prohibited by law or the loan instruments and is for a specific service requested by the borrower that is assessed only after disclosure of the fee is provided to the borrower and the borrower expressly consents to pay the fee in exchange for the service.
(c) Attorneys’ fees.
In addition to the limitations in subdivision (b) of this section and Civil Practice Law and Rules section 3408(h), the following rules apply to attorneys’ fees charged in connection with a loss mitigation option, a reinstatement or loan satisfaction:
(1) the fee must be reasonable and customary for work that is actually performed by an attorney; and
(2) the fee and a breakdown of the tasks performed must be disclosed to the borrower prior to entering into the agreement governing the loss mitigation option, reinstatement or loan satisfaction.
(d) Late and delinquency fees.
(1) A servicer shall not impose any late or delinquency fee when the only delinquency is attributable to late or delinquency fees assessed on an earlier payment, and any subsequent payment is otherwise a full payment for the applicable period and is paid on its due date or within any applicable grace period.
(2) Except for loans or forbearances insured by the Federal Housing Commissioner or for which a commitment to insure has been made by the Federal Housing Commissioner or to any loan or forbearance insured or guaranteed pursuant to the provisions of an act of congress entitled Servicemen's Readjustment Act of 1944, late fees shall be in accordance with and not exceed the two percent limit as specified in the Real Property Law section 254-b.
(3) Late fees shall not be:
(i) based on an amount greater than the past due amount;
(ii) collected from the escrow account or from escrow surplus without the approval of the borrower;
(iii) deducted from any regular payment; or
(iv) assessed if a borrower is making timely trial modification payments.
(e) Property valuation fees.
(1) Except as provided in paragraph (2) of this subdivision, a servicer shall not charge a property valuation fee to a borrower more than once in a 12-month period.
(2) A servicer may charge a reasonable fee for a property valuation to facilitate a borrower’s application for a loss mitigation option provided that the servicer has already provided without charging a fee one property valuation within preceding 12-month period.
(f) Statements.
A fee shall not be charged to a borrower for the annual escrow statement or for one payment history furnished to a borrower in a 12-month period.
3 CRR-NY 419.5
Current through April 15, 2020
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