N.Y. Comp. Codes R. & Regs. tit. 3 § 419.4

Current through Register Vol. 46, No. 45, November 2, 2024

Section 419.4 - Statement of account

(a)Annual statements.

At least once annually, within 30 days of the end of the escrow account computation year, a servicer shall deliver to each borrower a plain language statement of the borrower's account that lists the unpaid principal balance of the mortgage loan at the end of the immediately preceding 12-month period, the interest paid during such period, and the application of all payments during such period; and the amounts deposited into escrow and disbursed from escrow during the period. The escrow statement may be provided separately from the statement showing the unpaid principal and interest paid. The format and content of the annual escrow statement shall comply with the requirements of RESPA and 12 C.F.R. section 1024.17(i)(1) and (j).

(b)Payment histories.

Within 30 days of receipt of a request from the borrower, a servicer shall deliver to the borrower a payment history for the preceding 36 months (unless a different period is requested) of the borrower's account showing the date, amount, and application of all payments credited to the account and the total unpaid balance during this period. The servicer shall have 60 days to deliver a payment history when the request is for a period longer than the preceding 36 months and the servicing rights to the loan were transferred within that 36-month period.

(c)Periodic statements.

A servicer shall provide each borrower, for each billing cycle, a periodic statement which shall include:

(1) The amount due, including, but not limited to:

(i) the payment due date;

(ii) the amount of any late payment fee, and the date on which that fee will be imposed if payment has not been received;

(iii) if the transaction has multiple payment options, the amount due under each of the payment options;

(iv) an explanation of the amount due, including:

(a) the monthly payment amount, including the amount, if any, that will be applied to principal, interest, and escrow and, if a mortgage loan has multiple payment options, a breakdown of each of the payment options along with information on whether the principal balance will increase, decrease, or stay the same for each option listed;

(b) the total sum of any fees or charges imposed since the last statement; and

(c) any payment amount past due.

(2) A past payment itemization, including:

(i) the total of all payments received since the last statement, including the amount, if any, that was applied to principal, interest, escrow, fees and charges, and the amount, if any, sent to any suspense or unapplied funds account; and

(ii) the total of all payments received since the beginning of the current calendar year, including the amounts, if any, that were applied to principal, interest, escrow, fees and charges, and the amount, if any, currently held in any suspense or unapplied funds account.

(3) A list of any transaction activity that causes a credit or debit to the amount currently due. This list must include the date of the transaction, a brief description of the transaction, and the amount of the transaction for each activity on the list.

(4) If a statement reflects a partial payment that was placed in a suspense or unapplied funds account, an explanation for how the borrower can have the funds applied to the loan balance. The explanation must be provided on the front page of the statement or, alternatively, may be included on a separate page enclosed with the periodic statement, or in a separate letter.

(5) Account information, including:

(i) the amount of the outstanding principal balance;

(ii) the current interest rate in effect for the mortgage loan;

(iii) the date after which the interest rate may next change; and

(iv) the existence of any prepayment penalty that may be charged.

(6) An escrow statement, including the amounts deposited into escrow and disbursed from escrow during the applicable period.

(7) If the borrower is more than 45 days delinquent, the following information:

(i) the date on which the borrower became delinquent;

(ii) a notification of possible risks, such as foreclosure, and expenses, that may be incurred if the delinquency is not cured;

(iii) an account history showing, for the previous six months or the period since the last time the account was current, whichever is shorter, the amount remaining past due from each billing cycle or, if any such payment was fully paid, the date on which it was credited as fully paid;

(iv) a notice indicating any loss mitigation program to which the borrower has agreed, if applicable;

(v) a notice of whether the servicer has fulfilled the pre-foreclosure notice requirements of Real Property Actions and Proceedings Law section 1304 or Uniform Commercial Code section 9-611(f), if applicable; and

(vi) a breakdown of the total payment amount needed to bring the account current, including a detailed breakdown of the actual fees and charges claimed, as well as, a date upon which the payment amount specific will expire and no longer be sufficient to bring the account current.

(d)Payoff balances.

A servicer shall provide a plain language statement of the total amount that is required to pay off the mortgage loan as of a specified date, within a reasonable time, but in any event no more than seven business days after receipt of a request from the borrower. A servicer shall not charge a fee for providing a payoff statement or for issuing a release upon full prepayment, provided that a servicer may charge a reasonable fee for providing a payoff statement after issuing five or more payoff statements to a borrower in any calendar year. The requirements of this section are in addition to the requirements of section 274-a of the Real Property Law regarding the written instrument to be provided by the holder of a mortgage upon real property in connection with a bona fide written demand as defined by section 274-a(2)(b)(iii) therein.

(e)Modified periodic statement for borrowers in bankruptcy.

The requirements of this section shall not apply to a borrower who is a debtor in bankruptcy under title 11 of the United States Code if doing so would violate the automatic stay provisions thereof.

N.Y. Comp. Codes R. & Regs. Tit. 3 § 419.4

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