N.Y. Comp. Codes R. & Regs. tit. 3 § 38.13

Current through Register Vol. 46, No. 51, December 18, 2024

Section 38.13 - Fha mortgage loan correspondents

(a) For purposes of implementing section 590(5-a) of the New York Banking Law, all of the applicable requirements of this Part which pertain to mortgage bankers and exempt organizations shall also apply to any registered mortgage broker when acting as an FHA mortgage loan correspondent as approved by the superintendent. In all other instances, the mortgage broker shall remain subject to the requirements of this Part applicable to mortgage brokers.

(b) Notwithstanding any provision of this Part to the contrary, any registered mortgage broker, approved by the superintendent to act as an FHA mortgage loan correspondent, shall be permitted to advertise that it is an approved FHA mortgage loan correspondent authorized to make FHA insured mortgage loans. Such registered mortgage broker may display a notice that it is approved to make FHA insured mortgage loans.

(c) To the extent not prohibited by Federal law, where the requirement promulgated by the Secretary of Housing and Urban Development with regard to acting as an FHA mortgage loan correspondent differ from those of this Part, the FHA mortgage loan correspondent must comply with the requirement which provides greater consumer protection.

(d) No FHA mortgage loan correspondent may accept an application, application fee, credit report fee or property appraisal fee prior to making the following disclosure or one to like effect:

I am an approved FHA Mortgage Loan Correspondent. Your loan will be underwritten by my FHA approved sponsor. You will be notified of the name of the sponsor simultaneously with the issuance of an interest rate lock-in agreement or commitment to fund, whichever comes first. If the sponsor approves the FHA insured mortgage loan, I will make the mortgage loan to you.

N.Y. Comp. Codes R. & Regs. Tit. 3 § 38.13