Part 419 of the Superintendent of Financial Services’ Regulations – may be undergoing significant change. The superintendent of the New York Department of Financial Services (NYDFS) has proposed for comment changes to Part 419 with the potential to expand the obligations of servicers operating in the state.
New York first adopted Part 419 on an emergency basis on October 1, 2010 pursuant to the authority granted under the New York Mortgage Lending Reform Law that took effect a year earlier (July 2009). The Mortgage Lending Reform Law amended Section 590 of the New York Banking Law to require any person or entity engaged in the servicing of mortgage loans in the state to register with the NYDFS and to authorize the NYDFS to adopt a new regulatory framework for mortgage loan servicers. The NYDFS established application and registration procedures and financial responsibility requirements for servicers in Part 418 and regulates the business conduct of those servicers in Part 419. Every 90 days since initially adopting Part 419 on an emergency basis, the NYDFS has renewed the adoption, only once making adjustments to the rule text.
The proposed version of Part 419 still encompasses the servicing of first- and subordinate-lien forward and reverse mortgage loans. Some areas that will see changes:
-How payments are credited -new version – credited on the business day received vs. accepted and credited, or treated as credited, on the business day received.
-Annual Statement of account – including – the application of all payments during such period
-Payoff statements – new version “plain language” payoff statement vs. the prior “clear, understandable and accurate”
SPOC – SPOC be assigned to borrowers who are at least 30 days delinquent or have requested a loss mitigation application vs. the federally mandated 45 days
Mortgage Servicing Transfers and lots more…..
We will continued to keep you informed as these proposed changes evolve and make their way to coming out as the new rules!
If you have any questions, please contact our Director of Operations, Deborah Gallo, at [email protected]