2012 New York Consolidated Laws
RPA - Real Property Actions & Proceedings
Article 13 - (1301 - 1391) ACTION TO FORECLOSE A MORTGAGE
1304 - Required prior notices.

 
    §  1304.  Required  prior  notices.    * 1.  Notwithstanding any other
  provision of law, with regard to a  home  loan,  at  least  ninety  days
  before a lender, an assignee or a mortgage loan servicer commences legal
  action  against  the  borrower,  including  mortgage  foreclosure,  such
  lender, assignee or mortgage loan servicer  shall  give  notice  to  the
  borrower  in  at  least  fourteen-point  type  which  shall  include the
  following:
   "YOU COULD LOSE YOUR HOME. PLEASE READ THE FOLLOWING NOTICE CAREFULLY"
    "As of ___, your home loan is ___ days  in  default.  Under  New  York
  State  Law,  we  are required to send you this notice to inform you that
  you are at risk of losing your home. You can cure this default by making
  the payment of _____ dollars by ____.
    If you are experiencing financial difficulty,  you  should  know  that
  there  are  several options available to you that may help you keep your
  home.  Attached to this notice is a list of government approved  housing
  counseling  agencies  in  your  area which provide free or very low-cost
  counseling.  You  should  consider  contacting  one  of  these  agencies
  immediately.  These  agencies  specialize  in helping homeowners who are
  facing financial difficulty. Housing counselors can help you assess your
  financial condition and work with  us  to  explore  the  possibility  of
  modifying  your  loan,  establishing  an easier payment plan for you, or
  even working out a period of loan forbearance. If you wish, you may also
  contact us directly at __________ and ask to discuss possible options.
    While we  cannot  assure  that  a  mutually  agreeable  resolution  is
  possible,  we  encourage you to take immediate steps to try to achieve a
  resolution.  The longer you wait, the fewer options you may have.
    If this matter is not resolved within  90  days  from  the  date  this
  notice  was  mailed, we may commence legal action against you (or sooner
  if you cease to live in the dwelling as your primary residence.)
    If you need further  information,  please  call  the  New  York  State
  Department of Financial Services' toll-free helpline at (show number) or
  visit the Department's website at (show web address)".
    * NB Effective until January 14, 2015
    * 1.  Notwithstanding  any  other  provision  of law, with regard to a
  high-cost home loan, as such term is defined in  section  six-l  of  the
  banking  law,  a  subprime  home loan or a non-traditional home loan, at
  least ninety days before a lender or a mortgage loan servicer  commences
  legal  action  against the borrower, including mortgage foreclosure, the
  lender or mortgage loan servicer shall give notice to the borrower in at
  least fourteen-point type which shall include the following:
   "YOU COULD LOSE YOUR HOME. PLEASE READ THE FOLLOWING NOTICE CAREFULLY"
    "As of ___, your home loan is ___ days  in  default.  Under  New  York
  State  Law,  we  are required to send you this notice to inform you that
  you are at risk of losing your home. You can cure this default by making
  the payment of _____ dollars by ____.
    If you are experiencing financial difficulty,  you  should  know  that
  there  are  several options available to you that may help you keep your
  home.  Attached to this notice is a list of government approved  housing
  counseling  agencies  in  your  area which provide free or very low-cost
  counseling.  You  should  consider  contacting  one  of  these  agencies
  immediately.  These  agencies  specialize  in helping homeowners who are
  facing financial difficulty. Housing counselors can help you assess your
  financial condition and work with  us  to  explore  the  possibility  of
  modifying  your  loan,  establishing  an easier payment plan for you, or
  even working out a period of loan forbearance. If you wish, you may also
  contact us directly at __________ and ask to discuss possible options.

    While we  cannot  assure  that  a  mutually  agreeable  resolution  is
  possible,  we  encourage you to take immediate steps to try to achieve a
  resolution.  The longer you wait, the fewer options you may have.
    If  this  matter  is  not  resolved  within 90 days from the date this
  notice was mailed, we may commence legal action against you  (or  sooner
  if you cease to live in the dwelling as your primary residence.)
    If  you  need  further  information,  please  call  the New York State
  Department of Financial Services' toll-free helpline at (show number) or
  visit the Department's website at (show web address)".
    * NB Effective January 14, 2015
    * 2. Such notice shall be sent by such lender,  assignee  or  mortgage
  loan  servicer to the borrower, by registered or certified mail and also
  by first-class mail to the last known address of the  borrower,  and  if
  different,  to  the  residence that is the subject of the mortgage. Such
  notice shall be sent by the lender, assignee or mortgage  loan  servicer
  in  a  separate  envelope  from  any  other mailing or notice. Notice is
  considered given as of the date it is mailed. The notice shall contain a
  list of at least five housing counseling agencies as designated  by  the
  division  of  housing and community renewal, that serve the region where
  the borrower resides. The list shall include  the  counseling  agencies'
  last  known addresses and telephone numbers. The department of financial
  services and the division of housing and community  renewal  shall  make
  available  on  their  respective  websites a listing, by region, of such
  agencies. The lender, assignee  or  mortgage  loan  servicer  shall  use
  either of these lists to meet the requirements of this section.
    * NB Effective until January 14, 2015
    * 2. Such notice shall be sent by the lender or mortgage loan servicer
  to the borrower, by registered or certified mail and also by first-class
  mail to the last known address of the borrower, and if different, to the
  residence  which  is  the  subject of the mortgage. Notice is considered
  given as of the date it is mailed. The notice shall contain a list of at
  least five United States department of  housing  and  urban  development
  approved  housing  counseling  agencies,  or  other  housing  counseling
  agencies as designated by the division of housing and community renewal,
  that serve the region where the borrower resides. The list shall include
  the counseling agencies' last known addresses and telephone numbers. The
  department of financial services and/or  the  division  of  housing  and
  community  renewal  shall  make  available a listing, by region, of such
  agencies which the lender or mortgage loan servicer may use to meet  the
  requirements of this section.
    * NB Effective January 14, 2015
    3.  The  ninety  day  period  specified  in  the  notice  contained in
  subdivision one of this section shall  not  apply,  or  shall  cease  to
  apply,  if  the  borrower has filed an application for the adjustment of
  debts of the borrower or an order for relief from the payment of  debts,
  or  if  the  borrower no longer occupies the residence as the borrower's
  principal dwelling.
    4. The notice and the ninety day period required by subdivision one of
  this section need only be provided once in a twelve month period to  the
  same borrower in connection with the same loan.
    * 5.  (a) "Home loan" means a loan, including an open-end credit plan,
  other than a reverse mortgage transaction, in which:
    (i) The borrower is a natural person;
    (ii) The debt is incurred by  the  borrower  primarily  for  personal,
  family, or household purposes;
    (iii)  The  loan  is  secured  by  a mortgage or deed of trust on real
  estate improved by a one to four family dwelling, or a condominium unit,
  in either case, used or occupied, or intended to  be  used  or  occupied

  wholly  or  partly,  as the home or residence of one or more persons and
  which is or will be occupied by the borrower as the borrower's principal
  dwelling; and
    (iv) The property is located in this state.
    (b)  "Lender"  means  a mortgage banker as defined in paragraph (f) of
  subdivision one of section five hundred ninety of the banking law or  an
  exempt  organization  as  defined in paragraph (e) of subdivision one of
  section five hundred ninety of the banking law.
    * NB Effective until January 14, 2015
    * 5. (a) "Annual percentage rate" means the annual percentage rate for
  the  loan  calculated  according  to  the  provisions  of  the   Federal
  Truth-in-Lending  Act  (15  U.S.C. § 1601, et seq.), and the regulations
  promulgated thereunder by the federal reserve board  (as  said  act  and
  regulations are amended from time to time).
    (b)  "Home loan" means a home loan, including an open-end credit plan,
  other than a reverse mortgage transaction, in which:
    (i) The principal amount of the loan at origination did not exceed the
  conforming loan size that was in existence at the  time  of  origination
  for  a  comparable  dwelling  as  established  by  the  federal national
  mortgage association;
    (ii) The borrower is a natural person;
    (iii) The debt is incurred by the  borrower  primarily  for  personal,
  family, or household purposes;
    (iv) The loan is secured by a mortgage or deed of trust on real estate
  upon  which  there  is  located or there is to be located a structure or
  structures intended principally  for  occupancy  of  from  one  to  four
  families  which is or will be occupied by the borrower as the borrower's
  principal dwelling; and
    (v) The property is located in this state.
    (c) "Subprime home loan" for the purposes of  this  section,  means  a
  home  loan  consummated  between  January  first, two thousand three and
  September first, two thousand eight in  which  the  terms  of  the  loan
  exceed  the threshold as defined in paragraph (d) of this subdivision. A
  subprime home  loan  excludes  a  transaction  to  finance  the  initial
  construction  of a dwelling, a temporary or "bridge" loan with a term of
  twelve months or less, such as a loan to purchase a new  dwelling  where
  the borrower plans to sell a current dwelling within twelve months, or a
  home equity line of credit.
    (d)  "Threshold"  means,  for  a  first lien mortgage loan, the annual
  percentage rate of the home loan  at  consummation  of  the  transaction
  exceeds  three  percentage  points over the yield on treasury securities
  having comparable periods of maturity to the loan maturity  measured  as
  of  the fifteenth day of the month in which the loan was consummated; or
  for a subordinate mortgage lien, the annual percentage rate of the  home
  loan   at  consummation  of  the  transaction  equals  or  exceeds  five
  percentage  points  over  the  yield  on  treasury   securities   having
  comparable  periods  of  maturity  on  the fifteenth day of the month in
  which the loan was consummated; as determined by the following rules: if
  the terms of the home loan offer any initial or introductory period, and
  the annual percentage rate is less than that which will apply after  the
  end  of  such initial or introductory period, then the annual percentage
  rate that shall be taken into account for purposes of this section shall
  be the rate which applies after the initial or introductory period.
    (e) "Non-traditional home loan" shall mean a payment option adjustable
  rate mortgage or an  interest  only  loan  consummated  between  January
  first, two thousand three and September first, two thousand eight.
    (f)  For  purposes  of  determining  the  threshold, the department of
  financial services shall publish on its website a  listing  of  constant

  maturity  yields  for  U.S.  Treasury  securities for each month between
  January first, two thousand three  and  September  first,  two  thousand
  eight,  as  published  in  the  Federal  Reserve  Statistical Release on
  selected  interest  rates,  commonly referred to as the H.15 release, in
  the following maturities, to the extent available in such  release:  six
  month,  one year, two year, three year, five year, seven year, ten year,
  thirty year.
    (g) "Lender" means a mortgage banker as defined in  paragraph  (f)  of
  subdivision  one of section five hundred ninety of the banking law or an
  exempt organization as defined in paragraph (e) of  subdivision  one  of
  section five hundred ninety of the banking law.
    * NB Effective January 14, 2015
    * 6.   The  department  of  financial  services  shall  prescribe  the
  telephone number and web address to be included in the notice.
    * NB Effective until January 14, 2015
    * 6.  The  department  of  financial  services  shall  prescribe   the
  telephone number and web address to be included in the notice.
    * NB Effective January 14, 2015