N.Y. Comp. Codes R. & Regs. tit. 3 § 4.3

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

Section 4.3 - Amounts not included as interest in certain home mortgage loans

The term interest for purposes of subdivision (a) of section 4.2 of this Part shall not include the following amounts payable in connection with the loan or forbearance, if itemized in writing to the borrower:

(a) a reasonable fee in consideration for the legally enforceable written commitment of the lender to reserve funds for future disbursement to the borrower, provided such commitment was made prior to November 1, 1968;

(b) reasonable fees, charges and costs for the following services actually and necessarily rendered:

(1) appraisal of property securing the loan or forbearance;

(2) preparation of surveys, abstracts or similar documents;

(3) title examinations, examinations of public records or similar procedures;

(4) title insurance;

(5) legal services and reasonable disbursements related thereto;

(6) notarizations, authentications or similar procedures; and

(7) periodic inspections related to advances to be made under the loan agreement;

(c) fees and charges prescribed by law for determining the existence of or for filing, recording or otherwise perfecting or releasing or satisfying any security, or the premiums, not in excess of such fees and charges, payable for any insurance in lieu of perfecting the security;

(d) actual and lawful charges or premiums for:

(1) completion or performance bonds;

(2) insurance against loss of or damage to property securing the loan or forbearance;

(3) insurance against liability arising out of the ownership or use of property securing the loan or forbearance; and

(4) credit life, accident or health insurance if the same is:

(i) not a condition of the loan or forbearance and such fact is clearly disclosed in writing to the borrower; and

(ii) requested in writing by the borrower after written disclosure to him of the cost thereof;

(5) mortgage guaranty insurance as and to the extent:

(i) premiums for such insurance are excepted from interest for the purposes of section 5-501 of the General Obligations Law; and

(ii) the mortgagor may be required to pay such premiums; as provided in article 65 of the Insurance Law or such other law or laws and regulations promulgated pursuant thereto as may be applicable;

(e) charges for the payment of transfer, mortgage recording and other taxes and governmental charges;

(f) funds held by the lender for future payments of taxes, assessments, water or sewer charges and insurance premiums described in subdivision (d) of this section;

(g) fees and charges paid or payable pursuant to a written agreement or modification thereof between the lender and the borrower upon the occurrence of specific acts or defaults of the borrower, such as:

(1) prepayment penalties;

(2) charges for delinquent or late payments; and

(3) collection fees;

(h) any amount paid or payable by or for a third-party employer to a lender to aid in financing the sale of a residence owned by an employee of such third-party employer or the purchase of a residence by such employee, provided the third-party employer certifies in writing to the borrower that he will not be required to reimburse the third party, either in whole or in part, directly or indirectly, for any such payment; and

(i) such other fees and charges as may be specifically authorized by Federal or State law or regulation.

N.Y. Comp. Codes R. & Regs. Tit. 3 § 4.3