(a) Appraised value means the dollar value determined by an independent and impartial analysis of the nature, quality, value or utility of a residential property conducted by an independent licensed appraiser.

(b) Appraisal report means any written or electronic communication of an appraised value, which shall include all information customary in such report.

(c) Capital improvement means any addition or alteration to real property that meets all three of the following conditions, in accordance with the New York State Department of Taxation and Finance, Tax Bulletin ST-104, and any clarifications or amendments thereto:

(d) Debt-to-income ratio or DTI shall be the result of dividing the mortgagor’s monthly housing payment (principal, interest, taxes and insurance) by the mortgagor’s gross monthly income. Gross monthly income shall be deemed to be income determined in accordance with 24 CFR 92.203(a).

(e) Gross sales proceeds means the contract price as stated on the final HUD-1 settlement issued pursuant to the sale or transfer of the residential property that is the subject of the shared appreciation mortgage modification agreement.

(f) Holder means a servicer, as defined by 3 NYCRR, section 418.3, a lender, or any person or entity who holds the mortgage loan as an asset and has the ability to negotiate terms thereof.

(g) Interest arrears means any interest past due for 30 days or more.

(h) Licensed appraiser means a person licensed under article 6-E of the Executive Law of New York who performs appraisals in conformity with the uniform standards of professional appraisal practice.

(i) Market value means a value which is the fair market value determined as a result of a sale or transfer in an arms-length transaction.

(j) Modified mortgage loan means a mortgage loan entered into in connection with a shared appreciation agreement.

(k) Mortgage loan means a loan to a natural person made primarily for personal, family or household use, secured by either a mortgage, deed of trust or other equivalent consensual security interest on a residential property or any certificate of stock or other evidence of ownership in, and proprietary lease from, a corporation or partnership formed for the purpose of cooperative ownership of residential real property and shall include any refinance or modification of any such existing loan.

(l) Mortgagor means a natural person obligated to repay the mortgage loan secured by the residential property that is the subject of the shared appreciation mortgage modification agreement.

(m) Owner occupied when used in conjunction with the term residential property, means that the owner of the underlying residential property occupies at least one unit of the residential property as a principal residence.

(n) Relative is a person connected with another by blood or affinity.

(o) Residential property means real property located in this State improved by a one- to four-family dwelling (as defined in 12 CFR 226.2[a][19]), residence or residential unit in a building used or occupied, or intended to be used or occupied, wholly or partly, as the home or residence of one or more persons, but shall not refer to unimproved real property upon which such residence is to be constructed.

(p) Shared appreciation agreement means an agreement between the mortgagor and the holder that provides for the holder to share in the appreciation of the value of the residential property upon sale thereof. A shared appreciation agreement is not valid without the execution of a shared appreciation mortgage modification agreement.

(q) Shared appreciation mortgage modification agreement means an agreement by which a mortgage loan holder reduces the principal amount of the mortgage loan in order to assist a mortgagor at risk of foreclosure to avoid such foreclosure.